Customer Experience Podcast

Ep 169 Vital for 2021 – Digital Nudging Will Revolutionize Your CX

Whether you realize it or not—and even if you don’t know what they are—you use Digital Nudges in your online experience today. Digital Nudges are the interactions you have with customers online in your experience that inspire their actions. Every online experience has them, but not all of them are deliberate.

In this episode of the podcast, we are going to take a closer look at what Digital Nudges are, how they work, and why, and share some examples of Digital Nudges that work and some that don’t. We argue that designing these moments intentionally to help people make decisions that drive value for them and your organization is key to revolutionizing your Customer Experience in the post-pandemic era.

Key Ideas to Improve your Customer Experience

Digital Nudges build on Nobel-prize winning economist Professor Richard Thaler and Professor Cass Sunstein’s concept of Nudging. Thaler and Sunstein’s 2008 book Nudge: Improving Decisions about Health, Wealth, and Happiness explained that a Nudge is a way you present your customers’ choices that tips the scales towards a particular option. Digital Nudges are the same idea, but specifically to the online experience.

The reason Digital Nudges work is because they play into our biological psychology as human beings. People who study how consumers make buying decisions use concepts from the Behavioral Sciences to explain customer behavior. From concerns about availability to worrying about risking losing something to gain something else to finding ways to shortcut a challenging decision, the Behavioral Sciences can explain what concept (or concepts) are at work when people decide to buy from you. Perhaps most importantly, Behavioral Sciences can also show you why they don’t.

• 02:50 We explain what we mean by the term Digital Nudging.
• 04:40 We give examples of what we mean by Digital Nudging and the concepts from Behavior Science behind them, starting with Scarcity.
• 09:05 We explain how Social Proofing can help with a Digital Nudge.
• 14:51 Colin shares a story about a website that did an excellent job of leveraging the ideas of Anchoring, Extremeness Aversion, and the Decoy Effect.
• 20:43 We explain how the Evaluability Heuristic comes into play in Digital Nudging and how to use it to buy things like an uninterruptible power supply.
• 23:30 We talk about how Framing Effects influence customer behavior and buying decisions.
• 25:46 We share the recommended actions, so you can use this information to Digitally Nudge your customers intentionally instead of leaving it to chance.

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Customer Experience Information & Resources

LinkedIn recognizes Colin Shaw as one of the ‘World’s Top 150 Business Influencers.’ As a result, he has 289,000 followers of his work. Shaw is Founder and CEO of Beyond Philosophy LLC, which helps organizations unlock growth by discovering customers’ hidden, unmet needs that drive value ($). The Financial Times selected Beyond Philosophy LLC as one of the best management consultancies for the last two years. Follow Colin on Linkedin and Twitter.

Click here to learn more about Professor Ryan Hamilton of Emory University. 

Why Customers Buy: As an official “Influencer” on LinkedIn, Colin writes a regular newsletter on all things Customer Experience. Click here to join the other 22,000 subscribers. 

Experience Health Check: You already have an experience, even if you weren’t deliberate about it. Our Experience Health Check can help you understand what you have today. Colin or one of our team can assess your digital or physical Customer Experience, interacting with your organization as a customer to define what is good and what needs improving. Then, they will provide a list of recommendations for critical next steps for your organization. Click here to learn more. 

How can we help?

Click here to learn more about Beyond Philosophy’s Suite of Services.