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Indian policy maker, Montek Ahluwalia recently summed up the problems at the heart of the global financial crisis when he said: ‘Confidence grows at the rate a coconut tree grows and falls at the rate a coconut falls’.

Simply put, the feeling of trust, confidence and credibility are critical components of the decision making process for customers.

While people feel like they don’t know who to trust anymore, a feeling underscored by massive uncertainty, that doesn’t mean they aren’t looking for people they can trust; they’re simply relying more than ever on recommendations from the people – friends, family and colleagues – they already know and trust, and importantly, they’re inclined to stay with what they know.

Reducing prices to retain customer loyalty is not enough, and probably not necessary, when what companies should be doing is paying attention to how their customers feel.

Whether we are still in the recession or heading out, relationships during and post recession will be critical.

Here are six tips for successful business in the new environment:

1. Train your staff and engage them in your business. They’re the ones who will make your customers feel good, or bad. A customer service survey by KiwiHost and JRA found that most Kiwis will give a company only one or two chances to stuff up, then they go elsewhere.

2. Market locally. Neighbourhood marketing saves on expenses and people are more likely to trust their neighbours.

3. Develop a referral network. People who come recommended automatically enjoy higher trust and better conversion rates.

4. Establish credibility. Use third person endorsements from clients more frequently.

5. Increase visibility. When decisions to buy are few and far between, the business needs to make sure it is known far and wide.

6. Build strong relationships. The relationship between a customer and a business is like a marriage. It requires trust, work and regular communication.

If SME businesses – and even the corporate sector – want to survive in this environment they and their staff have to go back to building relationships based on trust.

If people don’t trust you (and it’s now harder than ever), they won’t give you their hard earned money.