Who do you trust? More importantly, who do you mistrust?
May 31 is "Quit Facebook Day." Some users are outraged over new privacy policies that made sharing all personal content the default. The company "rolled out a simplified version of its privacy controls today, a single page where users can set who sees what.
Too late. Facebook already damaged its own reputation by mismanaging changes in privacy controls. That harmed reputation will continue to haunt Facebook for years.
The reason: Trust is now the most important service an online company can offer.
The public perception used to be that we "used" online services. But it's slowly dawning on the public that, well, they "use" us, too.
To use Facebook is to hand over the most intimate details of your life -- your personal contact information, your life history, your family and friends, your intimate secrets, in many cases. People are willing to do this only if they trust Facebook to protect that information.
And they have a point. The truth is that privacy policies and privacy controls don't tell us everything.
How to Gain Trust
Years ago, before money was just digital information, banks not only had to actually protect your money, they had to engage in "trust theater" to earn the confidence of customers. They erected sturdy-looking banks with impressive marble pillars out front. They built banks so that everyone could see the vault door. And the vault had to be something out of Fort Knox. Everybody wore suits and business attire.
Airport security is similar. The Transportation Security Administration (TSA) airport security policies and practices have two jobs. The first is to make flying safe. And the second is to make passengers believe that flying is safe.
Online services are now like banks or the TSA. In order to succeed in this new world of cloud-based, social, interactive everything, they have to figure out how to both protect the privacy of users, and also to convince users that they are trustworthy organizations.
Facebook doesn't seem to understand this yet, but Google does.
That's probably why Google was named the most reputable company in the world by "a Reputation Institute survey. Sony, Apple, Nokia, Intel, Microsoft, Panasonic, Philips, IBM, HP and Samsung also made the top 28, but Facebook was nowhere in sight.
Here's an example of the new "trust theater." Google yesterday "unveiled a browser plug-in that blocks its own data collection service.
The plug-in gives users control over whether information about their browsing can be collected by Google Analytics, a tool for web site owners that provides stats on what visitors do on their site -- how long they linger, where they linked from, and so on.
The browser plug-in has no real purpose other than to build trust with users. Google Analytics doesn't collect the private data of individuals. It collects aggregated data on visitation, but that isn't linked to actual, individual people. Google could have simply argued that no private information was being collected. But some users complained, so Google now lets them block data collection. It's pure "trust theater."
It's hard for companies like Google to predict what people are going to object to. For example, Google computers read the content of your Gmail to display advertising related to the topics of your conversations. Some have complained, but ultimately users have accepted this.
But when Google rolled out its Buzz service, which is a cross between Twitter and blogging, it made public users' most commonly e-mailed contacts. People freaked out, and Google fixed it in just a few days.
This highlights another way Google builds trust. They admit error, then fix it. They're passive. When people complain, they don't argue. They make changes.