We have all been in line or on hold for customer service, waiting for a company to get back to us. We tap our toes and roll our eyes as we wait. Then, when our wait time runs long and our patience runs short we get cranky and think, this customer service crew is really inept today.
Or are they?
Last February, the Harvard Business Review (HBR) published, “Why is Customer Service so Bad? Because it’s Profitable.” To summarize, researchers learned that lousy customer service is not always the product of ineptitude on the part of the company but instead sometimes a deliberate strategy to save money. Long phone queues and poor response times cause customers to give up, at least for the time being and try again later. However, a percentage of those people who bailed out of the process won’t try again later, which saves the company money.
The wealth of information within academia and doesn’t get used by business is amazing. I blame their naming. Academics have great information, but a terrible naming skills.
Take Hyperbolic Discounting (please!), a significant psychological concept that plays into many decisions we make, that we discussed on a recent podcast. You might think the term describes super-exaggerated markdowns, but it doesn’t.
Hyperbolic Discounting is what happens when we have the choice between a reward now and a reward later. It describes how we disregard the value of something when we have to wait for the benefits of it over time. In other words, we would rather have an immediate reward than one in the future, even if the future reward is higher than the one today. Moreover, Hyperbolic Discounting is why we expect a much higher reward when we have to wait for something.
We recently learned about the inventor of the hashtag Chris Messina’s concept of Conversational Commerce and how it has changed the way brands interact with their customers on social media platforms. Today we will learn about how this relationship will continue to evolve as we move into a new year and a new decade.
We spoke with Messina in a recent podcast about how a brand can humanize itself for its customers. As you recall, the future of interaction on social media is for a brand to respond as if it were a person, and it will likely be AI-powered in the future. However, before you can have this AI, you have to know how you want it to respond as “your brand.”
Technology, human behavior, Customer Experience are intersecting through the use of Artificial Intelligence (AI) and taking marketing in a new direction. To understand how it requires a better understanding of what the inventor of the hashtag Chris Messina’s calls Conversational Commerce. We spoke to Messinaon a recent podcast about this concept and how it applies to customer-driven growth.
Messina coined the phrase Conversational Commerce in 2016 to describe all the changes happening in the way we interact with customers in the consumer marketplace. Specifically, it relates to how brands and consumers are going to communicate through messaging and social media.
Beyond Philosophy did research late last year with our clients and within the marketplace to sort out what business wants in the next decade. The results showed the mantra in business today is growth. However, defining business growth is essential here because it will dictate how you go about gaining it.
We discussed what growth is to organizations and how to approach getting it in today’s marketplace on a recent podcast [TL1]. We also discussed how your Customer Experience plays into the mix to help you facilitate customer-driven growth.
How you present information often influences your audience to perceive it differently. In marketing, sometimes how you present the facts takes advantage of the information in a way that shouldn’t matter when you think about it rationally. Nonetheless, it does, and done right can yield positive customer-driven growth.
We discussed Framing Effects in a recent podcast. These influences often have surprising effects on customer behavior, usually in ways you didn’t expect about things you didn’t think mattered. Therefore, not paying attention to this detail can be disastrous for your business. It would be best for your bottom line to be deliberate about how you present information to your customers.