You know that old saying about what you make of you and me when you assume something? Well, it turns out, that economists made quite an assumption for years: that people were entirely rational in their decision making. However, they were wrong and we know they were because of the scientific method. Best of all, the truth is fairly simple and makes a lot of sense. Remarkably, this truth wasn’t part of how economists evaluated decision making.
Perhaps even more importantly, the truth about how we make decisions will make a huge difference in your Customer Experience. That is, if you choose to toss away your assumptions and consider it with a rational mind.
On our Intuitive Customer podcast, Professor Ryan Hamilton and I have been talking about the ways that customers are irrational in their decision making, often focusing on things that seem irrelevant.
I came across an excellent example of this in a Scientific American article about men and the environment. We men, it seems, aren’t as good at being environmentally friendly as women are. We’re more likely to litter and less likely to recycle or bring reusable bags to the market. And this is true across ages and cultures.
Amazon received two patents on wristbands that can track the moment-by-moment actions of their warehouse workers. Amazon has not said whether they will use the technology in their warehouses but stated if they did, they would be used to improve the process for their employees. However, anyone who has ever read George Orwell’s 1984 or suffered the scrutiny of a micro-manager will have a healthy dose of doubt that a wristband that reports back the nitty-gritty details about productivity will improve anything for them.
I’m a great fan of Apple, and not just because I use their products. For years, Apple has distinguished itself as a company that knows how to build an emotional connection with its customers. Because of that connection, Apple claims legions of loyal fans.
But with its recent missteps in its handling of iPhone battery issues, one has to wonder: has Apple lost touch with its customer base?
The Consumer Financial Protection Bureau (CFPB) meted out a $185 million fine that included a $100 million penalty to Wells Fargo in 2016 for their violation and abuse of consumer trust. The San Francisco-based bank, whose employees opened many fraudulent and unauthorized accounts in their customers’ name, now enjoys the dubious honor of shouldering the most substantial penalty the agency has issued since its formation in 2011. Now the question becomes what should Wells Fargo do next?