I won some money at a Casino recently, an unusual outcome for me. It wasn’t a huge amount, but it was a nice windfall. Did I spend it on something practical? No. Save it? Nope. Give it to charity? Not a chance.
I bought a fancy new fishing reel that I had my eye on but previously had felt was too expensive. It’s excellent, and I couldn’t be happier.
So why did I buy it when I won money but wouldn’t buy it when I would just have to pay for it from my usual funds? The answer is found in the concept of mental accounting, and it might have significant implications for your Customer Experience.
We discussed how our mental accounting affects our behavior as customers in our recent podcast. How your customer mentally budgets for your experience has a significant influence on how happy they are with it.
I am concerned. I recently read two pieces of research about Customer Experience that worried me. The first was from Nunwood, a UK-based research company with a Customer Experience index, and it showed that improvements in Customer Experience were not happening. The second was from Forrester, and it said the same thing: no increases in Customer Experience improvements.
With all the effort that companies are putting into improving their Customer Experience, why are there no improvements?
The C-Suite want to see a return. If this continues, I am sure the investment in resources and money dedicated to the effort will stop—and rightly so. However, if that happens, I worry Customer Experience as a movement will die.
How many words a minute can you type? 40? 60? 90? Now, if the letters, numbers, and symbols were not printed on the keys, how many would you be able to write on the correct key? 100%, right?
You probably don’t know the answer to the second question for sure. However, participants at a study at Vanderbilt University do. The participants typed from 72 to 94 words a minute. When they were handed a blank keyboard printed on a sheet of paper and were asked to write the letters on the appropriate keys in 80 seconds, the participants got less than 60% of them correct. What’s more, the typists left 20% of the keys blank; they couldn’t even guess what went there.
James Carville, political commentator and media personality coined the phrase, “The economy, Stupid,” for Bill Clinton’s 1992 presidential campaign. Carville was talking to the team at the time to help them focus on the key messages for Clinton’s campaign. The slogan resurfaced in the 2008 campaign as “It’s the economy, stupid.”
I decided that for people working in Customer Experience, we needed a way to stay on message, too. So, I am going to share with you some vital statistics about Customer Experience and how they deliver ROI because let’s face it, it’s about the ROI, Stupid.
I don’t go to a store looking for a product these days. What’s more, it occurred to me a couple of years ago that I no longer Google products that I want to buy; I “Amazon” them. I suspect many of you do the same.
In many ways, Amazon-ing products is a result of the digital transformation. We have stores where we can purchase things, and then we have their online channels where we are buying things also. However, the experiences are entirely different and have different Customer Experiences. Moreover, I have different expectations from these experiences. I suspect many of you do, too.
I have a rule with large purchases; I always sleep on it. I do it to ensure I want to make the purchase and not merely susceptible to a sales technique. Plus, it’s a significant expenditure, and I don’t want to make a mistake. This rule works well for me.