I’ve got a hypothetical question for you. On a scale of one to ten, how likely is it I am a male model?
Now before you destroy my self-esteem with your answer, I have a follow-up question. How did you come to that determination?
The answer to that question is the subject of this post and a recent podcast, and it involves the Representative Heuristic. This psychological principle could have a significant influence on how customers behave in your Customer Experience.
Because we have frequent thunderstorms and power outages in my Florida home, I recently decided to buy an uninterruptible power supply for my electronics. I’ve had good experiences with Apple products so I first checked to see if Apple made that sort of thing. They didn’t, so I set about comparing and contrasting the models that were available.
I quickly got lost in technical specifications, so I decided that I would choose based on how long the power supply would last. This wasn’t because that was in fact the most important criteria, it was simply something I could understand!
My experience illustrates the nature of customers: irrational, intuitive, driven by past memories and factors that seem irrelevant. We need to consider these traits when designing a Customer Experience to create most value. There are, then, five behavioral economics practices that are essential if you want to improve your customer experience. We discussed these on a recent webinar I hosted for Freshworks, the second in a series titled ‘Five behavioral economics practices to enhance your customer experience’.
There is a difference between strategy and tactics when you’re trying to solve a business problem. Most people jump straight to tactics and implementation, because it is the concrete stuff, the stuff that we can start doing now. Too few business people step back and think about the larger strategy. However, strategy is essential to ensure that all your tactics are not a waste of time.
Customer Experience Strategy was the subject of a recent podcast. We determined that when it comes to strategy, organizations could benefit from the answers to the following questions:
Do you know what drives me mad? When organizations talk about loyalty, what they mean is, “the customer gives me all of their business.”
Customers giving you all their business isn’t customer loyalty on its own. They could give it to you out of habit, or because you are a monopoly. It could also be a product of their apathy.
Customer loyalty is more than automatic or indifferent behavior. Understanding Customer Loyalty and the secrets to creating it is vital to your Customer Experience.
We discussed the two secrets to Customer Loyalty in a recent podcast. We revealed the secret of creating loyalty and gave examples of how it benefits your relationship with customers—and all that business you want of theirs.
Imagine you are selling a used car. Now, imagine your surprise that the person who wants to buy it is your brother. How would that be different from selling your vehicle to a stranger? Would you haggle as hard?
(Now, to be fair, if it was my brother Neil, my answer is yes.)
People act differently in various types of relationships and transactions. This distinction between these two types of situations is something that psychologists have studied, and the subject of our recent podcast. The way people interact with each other in transactions can apply to how people interact with firms.
We discussed measuring Customer Experience correctly in a recent podcast. With 11 books on marketing and Customer Experience, our guest Don Peppers, bestselling author, blogger, business strategist, and acclaimed keynote speaker, joins us to share his wisdom on the subject.
Peppers says that you have to think about the quality of the Customer Experience and why you measure it. Is it to see how well you have done? Is it to establish a business case for the program? Is it to reward people who interact with customers? The answer to why will have much to do with how you measure your results.