When I created Beyond Philosophy, I chose the name for a reason. I believe it is crucial to do more than discuss your theories about Customer Experience strategy. Sure, you need to think about it, understand the philosophy behind it as well as the science, but after that, you should go beyond the philosophy and do something.
In other words, theories are fascinating but falderal unless you implement them in your Customer Experience.
The theories we talk about in behavioral economics that people are so excited about now are 50 to 60 years old at this point. However, these ideas have not infiltrated business, politics, or life to the extent that they should because implementing them in real-life is difficult.
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’.
I used to work in corporate life. I managed to get up to a senior position. When people asked what I did, I used to say, “I play chess.”
I was joking, of course. The truth is I spent my day on company politics. My guess is a lot of you do, too.
Surprisingly, there are not training courses on company politics and how to deal with them. In light of this fact, we decided managing company politics would be an excellent subject of conversation for a recent podcast. Politics are everywhere and in every organization. They exist because it is human nature to crave power and influence.
Are you thinking the same as me? Facebook is not what it used to be – or at least my perception of what it was. Instead of being a company that I admire with a customer centric and open culture it now appears that the inherent culture of Facebook is one of non transparency which chooses to manipulate their customers and their data. Furthermore, I believe this could lead to their downfall.
Their investors maybe don’t feel the same way.The New York Times reported that Facebook had been fined $5 billion for privacy violations and the share price went up! It was good news that it was only $5 billion. Many people thought it was going to be much more.
Of course, many people thought that it should have been a lot more. I count myself among them.
Privacy is not a small thing. This latest violation should have us all wondering, can we trust Facebook and will this fine make any difference?
We discussed Facebook on a recent podcast and the implications of privacy violations for their users. We believe the loss of trust is going to be a massive issue moving forward.
I live in Sarasota, Florida, and recently, there have been some interesting changes to the public benches. Halfway along the seat, there are armrests.
At first, I thought it was to make them more comfortable than they were without an armrest in the middle. However, I learned the armrests were there to dissuade the homeless population from sleeping on public benches. It dawned on me that these armrests were a form of Choice Architecture.
We discussed Choice Architecture on a recent podcast and how it could be affecting your Customer Experience. Choice Architecture is nudging people in one particular direction by the way you arrange or present the options. If you’re trying to persuade people or get them to change their behavior, there are several different approaches you could take.
When we buy things, our memory generates the choice set that we have under consideration. It is essential for your Customer Experience strategy that you understand how customers create memories and how to ensure your brand is included in that set of recalled choices.
For example, pretend that you are out with friends and need to pick a restaurant. Usually, you and your friends would try to think of what restaurants you remember that are close to where you are. Then, you would try to narrow it down by which ones you remember are good/cheap/fast/healthy or whatever other metrics you are using to pick a restaurant.
One of the things this example shows is that as a restaurant owner, it doesn’t matter how good your restaurant is. It also doesn’t matter how close it is to various locations or how short the wait time is either. If people don’t remember your restaurant when they’re deciding to go out to eat, it’s like your restaurant doesn’t exist.
We explored how we retrieve these memories at the moment of decision in a recent podcast. We also talked about how you can ensure when your customers are deciding on what to buy in your category that they include you in that retrieved set. For my regular readers, it might come as no surprise to learn that this entire area of memory retrieval has to do with emotions.