Customer are irrational stop fighting

Customers are irrational:
Stop fighting it!

Colin Shaw Zhecho Dobrev
Founder and CEO, Consultant
Beyond Philosophy Beyond Philosophy

www.beyondphilosophy.com

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Who are Beyond Philosophy?

We are pioneers in the We work in many countries Thought leadership is our
Customer Experience is all
Customer Experience across several continents differentiator. We have literally written
we do!
space. the books on Customer Experience.

We put emphasis on the We maintain links with Evidence based consulting -
emotional side of customer academia to keep us aligned we look for what really drives
experience with the latest breakthroughs business value

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Some of our clients…

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Traditional way of looking at Customers…

Beyond Philosophy © 2001-2012
All rights reserved.

The transactional experience transfers into
social media…


Process or Experience?


Customer Experience definition

A Customer Experience is an interaction between
an organization and a customer as perceived
through a Customers conscious and subconscious
mind. It is a blend of an organization’s rational
performance, the senses stimulated and emotions
evoked and intuitively measured against customer
expectations across all moments of contact.


Rational and Conscious

Emotional and Subconscious

The emotional
Customer Experience


Credit card company example…

1 Getting a Card 2 Using my Card 3 Servicing my Account

4 Extending my Relationship 5 Having Financial Difficulty 6 Ending my Relationship


The subconscious
experience


The key to unlock the Customer brain

Experience Psychology

Sometimes we don’t know about the things that influence
us, we just subconsciously perceive them…

5:1
I am acting in a certain way, but not sure why…..

Subconscious signals effect our behaviour and we
don’t know why…

Attributes of the brand
Speed
Power
Aggressiveness
Risk-taking

Professors S. Adam Brasel and
James Gips of the Boston College
Carroll School of Management


How we make decisions
- what are the subconscious signals?


We reference our memory to give this experience meaning


Prospect theory - Kahneman and Tversky - 1979
One of the foundations of Behaviour economics
If a decision is taken to avoid a loss it will be a bolder more
aggressive, than one to achieve a gain.
We want to hold onto the things we have, we are protective, we
want to keep our standard of living. We will gamble more to do
that than to INCREASE our standard of living.
Kahneman: “People hate losing more than they like winning by
a factor or 2 or 3 - The emotional tail wags the rational dog”


Practical examples


SHOULD
Will

What customers What drives
say they desire business value


Middle East Telecommunications Company

Product quality versus
emotional engagement


Priority Order of the Attributes (Combined desirability and
current value) – Premium Consumers Desired by Customer Effect on Value
Top Ten

- 0 +

Mapping the Credit Card Journey
Getting the card Evaluation of offer No
Recommended by a •Web search Still Exit
Application Wait for confirmation interested?
Awareness friend/ direct mail •Conversation with the
agent
Getting the card Yes
Cross sold by an agent

Yes Yes

Yes Fill in enrollment forms Do you need
Are you Are you No
or call Company your DD and Did you Receipt of call /
just about aware of the Receipt of
•PP supp cards miss it? e-mail
to ? waiting time? No Welcome pack
•Benefit 2 Partners transferred? confirmation
•Direct Debit
No
Yes No

Is it all clear Call to authorise
Chase: Receive to you i.e. Yes Call to book /
Receive someone to act
• Benefit 1 Wait Benefit 1 & DD set up tickets
Statement on my behalf
• Benefit 2 Benefit 2 Cards etc?

No

Call XXX to check Call Benefit 1 to ask Receive DD Download 3rd
Call to chase the 2nd call to chase PA to call to
status of Benefit 1 about membership cancellation party
DD the DD book on CM’s
card number letter authorisation
behalf
form online

Wait 10 days for Fill in & Acct 2nd call to
2nd Call to XXX to Send signed Apply for a
Call Benefit 1 to Receipt of a response from Disclosure & authorise
check status of PP form via post or supplementary
check status of card Supp card XXX via the Authorisation someone to act
card fax card online
post form on my behalf


Cognitive
Negative Emotion Points Dissonance

Getting the card Evaluation of offer No
Recommended by a •Web search Still Exit
Application Wait for confirmation interested?
Awareness friend/ direct mail •Conversation with the
agent
Getting the card Yes Cognitive
Cross sold by an agent Dissonance
Yes Yes

Yes Fill in enrollment forms Do you need
Are you Are you No
or call Company your DD and Did you Receipt of call /
just about aware of the Receipt of
•PP supp cards miss it? e-mail
to ? waiting time? No Welcome pack
•Benefit 2 Partners transferred? confirmation
Peak End •Direct Debit Prospect
No
Rule Theory
Yes No

Is it all clear Call to authorise
Chase: Receive to you i.e. Yes Call to book /
Receive someone to act
• Benefit 1 Wait Benefit 1 & DD set up tickets
Statement on my behalf
• Benefit 2 Benefit 2 Cards etc?

No

Call XXX to check Call Benefit 1 to ask Receive DD Download 3rd
Call to chase the 2nd call to chase PA to call to
status of Benefit 1 about membership cancellation party
DD the DD book on CM’s
card number letter authorisation
behalf
form online

Wait 10 days for Fill in & Acct 2nd call to
2nd Call to XXX to Send signed Apply for a
Call Benefit 1 to Receipt of a response from Disclosure & authorise
check status of PP form via post or supplementary
check status of card Supp card XXX via the Authorisation someone to act
card fax card online
post form on my behalf


Increase in Net promoter Score: “As a result of its customer
experience efforts, NPS has improved from -10 to +30”
Increases shipping volume. “Maersk correlated a 4 point
increase in Net Promoter Scores with a 1% increase in

Maersk Line
additional volume shipped by customers”.
Training improves Net Promoter Scores in local regions.
“Maersk gave regional divisions the option of putting regional
Webinar June 21 st
customer experience councils in place. The 55 regions that have
set up local councils also received a three-day training course in
customer experience improvement methods. The firm then did a
study comparing regions with and without a council. The result:
participating local offices score 10 points higher on their NPS
than those offices that opted out”.



@ColinShaw_CX

Customer are irrational stop fighting

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