This month, the Nobel Prize in Economics went to the authors of Why Nations Fail, Daron Acemoglu and James A. Robinson. They argue that the role of institutions—whether inclusive or extractive—is critical to a country's economic success. According to them, a key factor that distinguishes these institutions is trust, both among the institutions themselves and between individuals. So what does this have to do with understanding people, brands, and customer experience? Everything. Let’s dive in!
This is a recurring finding across multiple studies, including one that shows Brazil as the country with the lowest interpersonal trust in Latin America—a region that already scores below the world average. This low level of trust is a significant barrier to collective interests like citizenship and civility. It becomes easier to justify highly individualistic attitudes by pointing to others’ behavior (“But everyone does it!”), and even initiatives aimed at collective benefit are often met with cynicism—for instance, the idea of a “traffic fine industry” reflects our default to expect the worst from others.
While cultural factors contribute to this characteristic, treating it as unchangeable risks becoming a self-fulfilling prophecy, allowing the same persistent issues to continue. The most constructive interpretation of this generalized lack of trust is to see it as a huge opportunity—especially for brands—because what is scarce is always more valuable. Having someone you can count on holds enormous value when the general expectation is that everyone is out to take advantage.
Game Theory teaches us that trust is the foundation of mutually beneficial relationships. Change begins when we take the calculated risk of sometimes losing in order to create a win-win relationship—the courage to be vulnerable, as Brené Brown would say. The best outcome is only possible through mutually beneficial actions—it’s pure math!
In the business world, several unilateral practices (which undermine trust!) are now facing major scrutiny. Advertising as interruption rather than entertainment, for instance, is increasingly challenged in terms of effectiveness. Likewise, complicated, obstacle-filled service cancellations are likely seeing their last days, even in the U.S., where mass lawsuits are more common than regulation.
Many of these practices persist because we only measure outcomes that benefit us, overlooking how they impact the other party. Those conducting generic, mass prospecting look at response and open rates but miss executives’ daily complaints on LinkedIn and ignore the silence from those who didn’t respond—a silence that might say a lot! Making cancellations hard temporarily lowers churn but treats customers as hostages, which is a costly strategy in the long run.
In low-trust environments, our natural tendency toward loss aversion—the inclination to fear losses more than to value equivalent gains—becomes heightened. The urge to "secure what’s ours" blinds us to opportunities for mutual gain, especially when those gains are harder to quantify and make bold moves seem like a poor choice. If this is the dominant strategy, could a different approach actually be more rewarding?
Return policies are a great example of balancing collaboration and competition. If they’re too restricted, they stifle purchases; if too open, there’s a risk of abuse by a small minority, which can worsen the experience for everyone. In the U.S., where these policies are generally more open than in Brazil, Walmart recently made a smart adjustment, involving an external partner to track frequent or problematic returners and limit policies only for them. This approach preserves the open policy for everyone else. This principle—avoiding punishing the majority for the actions of a few—can be applied in many other situations.
Trust is Built by Giving, Not Asking
This doesn’t mean saying yes to everything or giving the benefit of the doubt where it isn’t deserved. Trust varies across markets and cultures (each case must be understood!), but certain Game Theory principles apply to nearly all relationships, such as:
Starting with Collaboration: The best way to start a relationship is by signaling a willingness to collaborate, offering help, showing kindness, and giving before asking.
Transparency and Direct Communication: Building trust requires clarity and ensuring the other party fully understands without over-promising. Forget the fine print and benefit embellishments.
Costly Signaling: To convince others of your trustworthiness, show that you’re invested in the relationship with something that matters to them. Lifetime product guarantees or above-market warranties (such as those offered by Korean car manufacturers in their earlier, challenger brand days and now done by Chinese automakers) are classic examples.
Focus on Reputation and the Long Term: Trust is a repeated game; beyond delighting customers, avoiding actions that undermine trust is essential.
A Brazilian Example That Checks All These Boxes? Nubank.
They started by collaborating with 24/7 customer support via asynchronous chat with no waiting, staffed by people who could genuinely solve clients’ issues. Their communication was clear, without phone trees, hold music, “we’ll be checking on that,” or product-pushing by sales reps. The more informal and fun service style has a charm that made it shareable and has plenty of copycats nowadays. They signaled a costly commitment by eliminating maintenance fees on credit cards and accounts— an innovation that became industry standard for fintechs and something that traditional banks always relied heavily on. Nubank maintained remarkable consistency, never introducing changes too quickly or adding fees that could harm their customer experience or delivery quality, even when the market criticized their post-IPO financial performance.
The result? A user base that grew exponentially through referrals, saving millions on marketing, the highest NPS globally in consumer products & services, and the fourth-largest customer base for banks in Brazil. They shook up a concentrated, closed sector that assumed customer trust was built on lofty branches, assets under management, and legacy—forcing competitors to rethink their approach. Their next step? Helping other companies win clients. Now that they’ve earned trust, they can extend it to others—having a trusted third party can be a valuable Game Theory strategy for signaling reliability. They are an excellent example that betting on the long term and strategically yielding in a low-trust environment is a highly successful strategy.
It’s Not Just About Walking in the Other’s Shoes—We Need to See Ourselves from the Outside
Customers are friends, not food. | via https://aminoapps.com/
Empathy is often highlighted as the keyword for customer experience. It’s crucial but not enough.
Firstly, because the power imbalance between a brand and an individual is significant, and when we’re on the inside, we tend to overlook this. Secondly, because our biases and internal assumptions make us the easiest people to fool by ourselves—it’s very challenging to clearly see how we’re perceived by others (that’s why we go to therapy!) This is also why a trusted intermediary, capable of earning both sides' trust and deeply understanding both sides is essential for clarity and bursting internal bubbles.
Do you really know what trust means in your market? How would the game change if your clients had greater confidence in what you offer?
If, like us, you believe that happy and satisfied people are the most sustainable growth engine, and you want to explore ways to make that happen, reach out to us—we’re like couples therapy for brands and people!
