The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth

Retail is Broken: This is the Solution Some might say that retail is dead, another victim of COVID-19. However, I would argue that it is merely changing but far from finished. The pandemic has hastened changes to physical and digital retail experiences and customer behavior. Still, organizations that recognize and anticipate the shift can adapt and benefit from the new business-as-usual. Key Ideas to Improve Your Customer Experience There are both theoretical reasons and practical reasons why customer behavior is changing. In this episode, we discuss the key ideas of both. Psychological theory underlays much of our behavior in retail experiences. For example, customers like to touch things when making decisions to inform themselves that they are making a good one about a product. People also use body stimuli in thinking. So, what we buy when we feel warm is different from what we purchase when cold. In theory, we also sometimes make other buying decisions in public than we would in the privacy of our homes in the glow of a computer screen. That also goes for our unplanned purchases; we choose different impulse buys online than in person. From a practical perspective, customer behavior follows some general patterns as well. First of all, we have a well-worn process for decision making for purchases. These adapt to both physical and online experiences. Also, we want different types of retail experiences depending upon our perceived importance of the purchase. In other words, we don't need a physical experience for commodity items, but we might for a more significant investment item, like technology or appliance purchase. The physical experience is sometimes the reason customers shop with you, whether that's because it is fun or because being there makes people feel like part of the club. Sometimes, it's because you are buying something that you feel you need to see, like the fish you will serve to dinner guests (you know, back when having dinner guests was still a thing). Here are some highlights of the discussion: 01:18 – Colin shares a recent experience of buying a large television for the living room vs. a smaller one for the kitchen. 05:02 – We introduce the four key theories that underly the changes in retail today. 07:28 – Colin shares a story about when he consulted the Prime Minister at 10 Downing Street. (No, really.) 15:13 – We share the practical observations of customer behavior in both types of experiences. 19:18 – We explain that physical experiences often help build confidence for a customer's buying decision. 20:51 – We discuss how customer segmentation could help determine if customers want a physical retail experience for specific purchases. 27:40 – We talk about what you should consider and the recommended actions when designing your respective physical and online experiences. Please tell us how we are doing! Complete this short survey. Customer Experience Information & Resources LinkedIn recognizes Colin Shaw as one of the 'World's Top 150 Business Influencers.' As a result, he has 289,000 followers of his work. Shaw is Founder and CEO of Beyond Philosophy LLC, which helps organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). The Financial Times selected Beyond Philosophy LLC as one of the best management consultancies for the last two years. Follow Colin on Linkedin and Twitter. Click here to learn more about Professor Ryan Hamilton of Emory University. Why Customers Buy: As an official "Influencer" on LinkedIn, Colin writes a regular newsletter on all things Customer Experience. Click here to join the other 22,000 subscribers. Experience Health Check: You already have an experience, even if you weren't deliberate about it. Our Experience Health Check can help you understand what you have today. Colin or one of our team can assess your digital or physical Customer Experience, interacting with your organization as a customer to define what is good and what needs improving. Then, they will provide a list of recommendations for critical next steps for your organization. Click here to learn more. How can we help? Click here to learn more about Beyond Philosophy's Suite of Services.

Digital Transformation Didn't Work: This Is What You Should Do Now. Experts estimate that companies wasted around $900 billion in 2018 on failed digital transformation projects. Nevertheless, organizations have spent upward of $2 trillion (with a t) on digital transformations in 2020. How do we know that this is not just a big waste of time and money this time around? This episode of The Intuitive Customer hosts guest presenter Zhecho Dobrev, Principal Consultant for Beyond Philosophy, and our lead for digital transformation consultations. Dobrev shares what is working well, what isn't, and what organizations should do to improve their experiences. Key Ideas to Improve Your Customer Experience One of the reasons digital transformations are so unsuccessful has to do with preconceived notions of what a company needs to do before they know for sure. Moreover, many organizations do not understand what drives value for customers, even though they think they do. Understanding the Value Drivers for customers in online or digital experiences is essential to success, much like it is with the rest of the Customer Experiences people have with you. Digital transformation success requires you to recognize the moments in your online experience that drive or destroy value for you. Here are some highlights of the discussion: 03:58 – Zhecho explains how Customer Experience and digital transformation trends have stagnated over the past five years. 09:52 – Zhecho explains the main problem with digital transformation is preconceived ideas of what needs to be done without understanding what drives value. 13:58 – Zhecho explains what four-category value drivers are for digital transformation, which include Economic, Functional, Experiential, and Symbolic Value. 26:29 – We discuss the key takeaways from this research, including the importance of defining which of these categories drives the most value for your organization. 28: 33- Dobrev explains that the next most crucial thing is to determine what experiences can be digital and what should remain human-controlled. 30:24 – We explain the recommended actions that every organization should do with their digital transformation to set themselves up for success. Please tell us how we are doing! Complete this short survey. https://bit.ly/2UholUM Customer Experience Information & Resources LinkedIn recognizes Colin Shaw as one of the 'World's Top 150 Business Influencers.' As a result, he has 289,000 followers of his work. Shaw is Founder and CEO of Beyond Philosophy LLC, which helps organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). The Financial Times selected Beyond Philosophy LLC as one of the best management consultancies for the last two years. Follow Colin on Linkedin and Twitter. Click here to learn more about Professor Ryan Hamilton of Emory University. Why Customers Buy: As an official "Influencer" on LinkedIn, Colin writes a regular newsletter on all things Customer Experience. Click here to join the other 22,000 subscribers. Experience Health Check: You already have an experience, even if you weren't deliberate about it. Our Experience Health Check can help you understand what you have today. Colin or one of our team can assess your digital or physical Customer Experience, interacting with your organization as a customer to define what is good and what needs improving. Then, they will provide a list of recommendations for critical next steps for your organization. Click here to learn more. How can we help? Click here to learn more about Beyond Philosophy's Suite of Services.

What happens when you get three Customer Experience Pioneers together to discuss the past, present, and future of Customer Experience? This episode of The Intuitive Customer, for starters. Recorded in celebration of the recent CX day, Colin joins fellow experience experts and champions Lewis Carbone and Joe Pine to talk all things Customer Experience. Lewis Carbone is the author of Clued In: How to Keep Customers Coming Back Again and Again and the founder of ExperienceEngineering™. Joe Pine is the author of the book that started it all, The Experience Economy. He and his partner, Jim Gilmore, are true pioneers of the Customer Experience movement and the founder of their consultancy, Strategic Horizons, LLP. Key Takeaways There are a few things from this discussion everyone should remember in today's business environment, which include: Each of us has failed at some point during our career in one way or another. For my part, I often operated with the mindset that valuing the emotional connection that the Customer Experience evokes is an opinion everyone shared. However, I learned that tying your work to measurable results is the proper way to obtaining that shared mindset, and it is a value that I espouse to this day. If you don't tie your work to results, you will likely find that your mindset is your own. Pine made the mistake of underestimating how difficult it would be to get companies to be the first to undertake a Customer Experience improvement program. Failure is a possibility, and, for some organizations, too much of one. Pine learned that what you design and what you deliver might not produce the results you intended when you mix in real-live customers. As a result, he advises his clients to reserve around 20 percent of their budget to make real-world adjustments for those parts of the experience that aren't working as they had hoped. Carbone said his mistake was not being clear enough with people what the real meaning of Customer Experience is. There is not the depth of understanding that he assumed, and he believes that to fix it, we need a new way of talking about experiences that use distinctive language that better defines the concept for people. The future of customer experience is infused with technology and data. I have a passion for a new concept called Customer Science, which combines technology with artificial intelligence and mountains of data to predict customer behavior. The data-based approach Customer Science provides is an excellent path to anticipating your customers' needs and increasing your emotional bond with them. Pine agrees, adding that the shift from physical to digital experiences occurring with the COVID-19 Pandemic has accelerated this fusion of technology and psychology. He sees the value that an organization can generate by amplifying in-person experiences with digital ones and capitalizing on their desire for meaningful experiences that they value more than stuff. Carbone sees the future of Customer Experience in the cultures of the organization. Champions of the concept should build a culture that echoes the sentiments of their desired experience within their organizations. Moreover, the idea that science and art combine to create a higher level of experience management has begun to transform how companies approach business-as-usual. Carbone says using technology and humanity combined can create what he describes as Experience Management 2.0. There are things you can do right now to prepare for the future of Customer Experience at your organization. In addition to tying your efforts directly to return on investment (ROI), I advise champions of Customer Experience to determine the lifetime value of customers they serve. Often this amount helps justify expenses for an experience program that demands an organization's resources. Also, I encourage organizations to identify ways to improve the experience that take advantage of the most significant opportunity rather than only fixing the problems. The ROI on delivering a solution for a substantial opportunity is far more valuable than repairing a small problem that has costs associated with it. Carbone suggests deepening your understanding of how customers think vs. what they think. When you understand the role of unconscious thought and emotions and the influence they exert on our actions, you have an opportunity to surpass the benefits of customer centricity and reap the rewards of a customer-driven business model. Pine says preparing for the future means making a few adjustments to your thinking. First, he wants organizations to realize they are in an experience economy, not a service-providing one. Next, he encourages businesses to consider what they would change in their experience offering if they charged admission for it. That mindset is the correct one for innovation and the creation of a good experience that customers think is worth having. Finally, he wants a focus on the individual reactions that highly-customized experiences deliver. To discuss this further contact us at www.BeyondPhilosophy.com About Beyond Philosophy: Beyond Philosophy help organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). We then capitalize on this by improving your customer experience to meet these needs thereby retaining and acquiring new customers across the market. This podcast is produced by Resonate Recordings. Click here find out more.

The 5 Rules for Designing Great Digital Experiences A lot of Behavioral Economics can feel intimidating. However, it doesn't have to be. The Five Rules Podcast Series is our attempt at giving you an easy entry point into the complex and messy world of Behavioral Science. In 2020, we have all been doing many more online customer experiences than we thought we would. Some of these digital experiences have been excellent, and others were not. Suppose these are the only experiences that your customers have with your organization this year. How important is it to you that the digital experience is as easy and convenient as possible? We would be surprised if you said anything less than "very important." This episode of The Intuitive Customer shares our five rules for designing great digital experiences. Follow these directives, and you will deliver the kind of online experience that your customers appreciate, leading to the customer-driven growth you need. What Are The Five Rules? The Five Rules for Designing a Great Digital Experience Design in a digital "nudge." Analyze how customers really behave. Design your experience to anticipate your customers' needs. Plan to evoke emotions and measure them. Humanize technology. What Should You Do With Them? Design in a digital "nudge." The term digital nudge refers to the book Nudge by Nobel-prize winning economist Richard Thaler and Cass Sunstein. They suggested that the way you present a choice can influence how people choose. The subtle clues you include can affect how people behave. For example, if you make it seem like the normal thing to do is to participate in the company's 401(k) plan by making people who don't want to opt-out, most people participate in the program. The same concept can apply to your digital experience. We recommend using any number of psychological concepts that are part of the behavioral sciences in your design that nudge people toward the online behavior you want them to have. Analyze how customers really behave. A significant plus to working in the digital space is that you can measure everything. From how long people stay on the page to what they load (and unload) from their carts to what they look at the longest, you have a plethora of data, enabling you to understand how customers behave—in real life. Moreover, you can test what happens to customer behavior if you change things, and analyze that data, too. Design your experience to anticipate your customers' needs. Knowing what you know from the first two rules, you can now design into your digital experience features that anticipate your customers' needs. It could be that you make it easy for them to find their past orders. Perhaps you ensure that you have a shipping calculator available to them or other information necessary to decide. Whatever you choose to do, you must make it easy for them and present an experience that doesn't take up too much of their attention that they would rather be giving to something else. Plan to evoke emotions and measure them. Just as you should with your in-person experience, your digital experience should have specific actions that evoke a particular feeling that drives value for your organization. We would recommend that you participate in your digital experience as if you were a customer or have someone from the outside do it to provide a fresh perspective of the emotions your present experience evokes. Humanize technology. People respond differently to technology than they do to people. Moreover, people sometimes don't like it when they feel like they can't interact with other people. Suppose you use technology to interact with your customers at any point in the digital experience. In that case, we recommend that you ask yourself if that interaction would have a more positive emotional outcome if handled by a human. To discuss this further contact us at www.BeyondPhilosophy.com About Beyond Philosophy: Beyond Philosophy help organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). We then capitalize on this by improving your customer experience to meet these needs thereby retaining and acquiring new customers across the market. This podcast is produced by Resonate Recordings. Click here find out more.

When I am shopping on Amazon, and a product has 3.5 stars, I don't buy it. Now, 3.5 stars isn't a bad rating; in fact, it's above average. However, for me to place that item in my Amazon cart, it needs to have a rating of at least four stars or more. My behavior on Amazon is part of a broader concept called Negativity Bias, and it's a massive influence on customer behavior. This episode of The Intuitive Customer discusses the concept of Negativity Bias and how it affects people's behavior in your Customer Experience. We also share some positive ways you can make negativity work in your favor. Key Takeaways Negativity Bias describes how we emphasize negative information over positive and find it more compelling for decision-making. It's the reason we remember negative reviews more than positive ones. It's also why we think about what could go wrong in specific situations rather than what could go right. Here are a few more things you should know about Negativity Bias: We all have a negativity bias. This bias is not reserved for a particular type of person or demographic. A compulsion to remember and focus on the negative is a psychological concept that we all share, and it affects all of us in different ways regarding how we behave. Negativity Bias is related to Loss Aversion. Loss Aversion describes how we feel more pain from losing things than gaining things makes us feel good. Negativity Bias is a focus on the negative, which is a focus on the potential loss. It can lead to less rational decision-making. However, it can also motivate us to improve the situation too. Negativity Bias leads to specific actions to protect oneself. As customers dealing with uncertainty, as we often are when trying a product or service for the first time, we tend to take a what-could-go-wrong perspective. To prevent the potential bad outcome, we take specific actions to avoid it. These actions could include scrolling through customer reviews (focusing on the bad ones), buying only from brand names we know and trust, or looking for referrals from friends and family. While a little Negativity Bias can do good, too much only leads to bad. A focus on the negative can lead to good things, like process improvements or problem-solving exercises. However, too much stress there can lead to a skewed world view. It can lead to making poor decisions or missing the good things that are happening in an experience. Recommended Actions There are a few ways that you can use the Negativity Bias to get a good outcome. These include: Perform periodic checks of negative assessments to ensure that you have a realistic view of the situation. It is essential to determine if the negative feelings you have about your customer experience or business performance are based on objective measures or not. It's great to use Negativity Bias to motivate improvements, but it shouldn't squeeze the life out of your organization either. Remember to highlight success and reward good outcomes whenever possible. Remember that everyone tends to focus on the negative, including customers. When you understand how it works for people's perception, you can counteract its effects with specific tactics. Look for ways to mitigate the Negative Bias' poor outcomes for your bottom line by addressing it in your Customer Experience. Provide people with solutions in today's negative environment. Without a doubt, a global pandemic inspires quite a bit of Negativity Bias. Your customers feel it, and if you can find ways to be helpful in light of the present challenges, it will pay off later when customers remember this time. In other words, you can build customer loyalty by taking extra care of customers right now when they need you. Communicate positively. Understand how customers can glean the negative much more quickly than the positive and take special care to positively frame your messaging. Whether in direct customer communication channels or advertising, keeping the message positive is essential to inspiring customer-driven growth. An outside perspective can help you maintain positivity in your experience. Our Experience Health Check, where we pretend we are customers and then give you specific recommendations to improve your experience, can give you a fresh set of eyes on your communication efforts throughout the customer journey. Remember that fixing problems is good, but not always the best opportunity in your experience. Organizations often want to focus on what is going wrong in experience and fix it. That is a good instinct. However, many times in our Emotional Signature Research®, we discover that customers have other wants and needs that present a much more significant opportunity than fixing the various problems in the experience. While we aren't saying that you should ignore problems, we are saying to keep an open mind about addressing other opportunities in your experience that might yield a better return on investment in the long term. To discuss this further contact us at www.BeyondPhilosophy.com About Beyond Philosophy: Beyond Philosophy help organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). We then capitalize on this by improving your customer experience to meet these needs thereby retaining and acquiring new customers across the market. This podcast is produced by Resonate Recordings. Click here find out more.

5 New Rules Guaranteed to Build Trust A lot of Behavioral Economics can feel intimidating. However, it doesn't have to be. The Five Rules Podcast Series is our attempt at giving you an easy entry point into the complex and messy world of Behavioral Science. A great idea is a beautiful place to start when it comes to improving your Customer Experience to benefit your bottom line. When combined with a deliberate strategy and cunning tactics, a great idea is almost enough to make you successful, but only "almost enough." While these elements are fundamental to your success, affecting a real culture change at your organization is vital to achieving the customer-driven growth you hope to inspire. This episode of The Intuitive Customer shares our five rules for affecting real culture change. With these rules guiding your actions, you are well on your way to fostering the proper environment for your idea, strategy, and tactics to deliver the results you want. What Are The Five Rules? The five rules for affecting real culture change build upon each other. They include: The 5 Rule for Affecting Real Culture Change Create or define a burning platform. Recognize this is a long-term goal. Be clear on your vision for the future. Remember that "you don't make an omelet without breaking eggs." Lead from the top. What Should You Do With Them? Create or define a burning platform. Change is difficult and a bit painful for people. Therefore, unless the pain of change is less than the pain of staying the same, most people will resist making a change. Consequently, it would be best if you defined the problem and the pain it will cause the organization. Without the burning platform that only change will extinguish, you will have difficulty making meaningful changes in your organization. Just ask Circuit City, Blockbuster, or Kodak. Recognize this is a long-term goal. If you think you will implement and complete a culture change in six months, I wouldn't recommend taking it on. While you can get an excellent start and even make progress, six months is not long enough to affect the fundamental changes needed to foster customer-driven growth in many organizations. A more reasonable term is three to five years. Be clear on your vision for the future. It is imperative that you know what you want the culture to change to, and also what things you need to do to change the culture from where it is presently. You need to know what you want to start doing and what you need to stop doing. Moreover, communication (and re-communication) will be vital to get the team on board with your plan. Remember that "you don't make an omelet without breaking eggs." Despite your best efforts, not everyone is going to approve of your plan or your changes. Some may go so far as to obstruct progress. It would be best to resolve yourself to the idea that you might need to remove someone from their position because they are getting in the way of progress. You can't make a Customer Experience omelet without breaking a few eggs. Lead from the top. It takes more than words to effect change. People take notice of what you do to support your ideas. Specifically, you should examine how you prioritize your time. For example, if putting the customer at the center of what you do is essential to your plan, you should have time set aside in your schedule to do that for customers, too. When you show your team that you are not asking them to do anything you are not willing to do yourself, you increase employee engagement and improve the Employee Experience. To discuss this further contact us at www.BeyondPhilosophy.com About Beyond Philosophy: Beyond Philosophy help organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). We then capitalize on this by improving your customer experience to meet these needs thereby retaining and acquiring new customers across the market. This podcast is produced by Resonate Recordings. Click here find out more.

When you bring attention to something, it influences people's behavior. For example, The food and household goods supplier in the UK, Tesco, was recently accused of profiteering by raising the prices of a yeast extract spread called Marmite. There was quite an uproar about it in the UK. You would think that this would mean sales of Marmite would go down. You would be wrong. After the kerfuffle about the love-it-or-hate-it spread, Marmite sales increased by 61 percent. The reason Marmite sales went up has a lot to do with Priming. This episode of The Intuitive Customer cover what Priming is, how it works, and how you can employ it in your Customer Experience to foster customer-driven growth. Key Takeaways Priming is a term derived from the early water pumps, as in "priming the pump." That phrase refers to the fact that you would need to pour a little water into old water pumps so that more water would come out of it. The psychological concept is similar. Priming describes how doing a little bit of something can activate cognitive systems in peoples' minds and influence their behavior. Here are a few more things you should know about Priming: Priming affects what customers remember at the moment. Customer Loyalty requires memory; after all, you can't return to an experience if you don't remember it (at least not on purpose). However, because memories exist in a network or a connected group of recollections associated in some way, Priming the memory pump affects what memories a customer remembers before they make a decision, and it can affect how they decide. Little things are often the Primers, and they appeal to the subconscious. Priming works best in a subtle way, triggering the subconscious. For example, researchers observed that when a wine store played French music over the sound system, French wine sales increased by a ratio of five to one. However, the customers were unaware of why they bought French wine that day. The two systems of thinking are part of the reason Priming is so effective. The automatic and fast thinking Intuitive System is always looking for ways to present information useful in decision making. When you send a Prime through your experience, the Intuitive System pushes the memories associated with the prime to the customers' consciousness if the customer needs it. Priming Customer Experience happens whether you are deliberate about it or not. Many little things in your experience are priming the customers' subconscious right now. However, few organizations engage in a deliberate strategy there. How the store looks, smells, or sounds, is a significant influence on how customers behave. However, even your advertising primes customers; unfortunately, it is often by setting customers' unrealistic expectations that fall short in reality. Recommended Actions There are a few things we recommend that you do with Priming in your Customer Experience. Recognize that Priming exists now in your Customer Experience. Whether or not you intended them to, little details of your experience are priming customers right now. There is no neutral priming. We recommend taking an outside approach to determine what these Priming elements are, so you are not surprised. Consider whether these existing Priming elements are working. Once you recognize the primes that already exist, can you trace them to your desired customer behavior? Adjust the Priming elements that are not working. To adjust your primers, you should have a clear idea of what experience you want to deliver. This experience should inspire the customer-driven growth you want. If you are not getting the results you want currently, trace the customer behavior back to the moment they encountered the prime, and consider how changing it could inspire new action. In one of our client consultations with an insurance company in the UK, we changed one word that their customer service agents used in the new policy-holder interaction and reduced their new customer call back volumes by 70 percent in three weeks. To discuss this further contact us at www.BeyondPhilosophy.com About Beyond Philosophy: Beyond Philosophy help organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). We then capitalize on this by improving your customer experience to meet these needs thereby retaining and acquiring new customers across the market. This podcast is produced by Resonate Recordings. Click here find out more.

Like the rest of the world, the Customer Experience world is changing. Customers have new expectations and are doing business in new ways. While we adapt to the world that COVID-19 presents, we change what we want as customers and how we think about our relationships with the entities we buy. As Customer Experience managers, we must rise to meet this challenge by getting inside our customers' minds. This episode of The Intuitive Customer hosts Lewis Carbone, Customer Experience expert and speaker, and founder of ExpereinceEngineering™. His book, Clued In: How to Keep Customers Coming Back Again and Again, discusses his methodology for designing into your experience clues that signal to your customers that you have what they are looking for, so they keep coming back for more. Key Takeaways Carbone shared several essential insights from his decades in the field of Customer Experience. Here is a quick summary of what he had to say: The unconscious mind makes decisions long before the conscious mind rationalizes it. Many decisions we make happen at a primitive, emotional level, per Carbone. Therefore, it is essential to build your Customer Experiences on this foundational principle to increase your emotional engagement with customers. Few companies are using this principle as their foundation, even still today. Many companies know that customer emotion is vital to experiences, but they still don't emphasize them in their day-to-day. Carbone says this is because they don't know what to do, so they stick to methods with which they are comfortable. Knowing how customers think is more valuable than what they think. Carbone believes that once you have the code for customer decision-making, you can unlock how to give customers what they want and evoke the emotion you want them to feel. The clues you leave in an experience help you achieve this outcome. Carbone shares the example of how the toilet paper triangle signals a freshly-cleaned hotel bathroom. If he ever uses his bathroom for the first time and the paper doesn't have a triangle, Carbone wonders who was there before him or if the staff forgot to clean the room. In other words, if the clues you leave send the wrong signal, you evoke the wrong emotions. Recommended Actions Carbone says that when it comes to the next evolution of Customer Experience, it is essential that organizations and individuals who seek to manage them should increase their self-awareness of how well they understand the field. The behavioral sciences are crucial to help you design experience that leaves the appropriate clues. Carbone also shared his Five Absolutes for Customer Experience Management, which include: Moving from the idea of "making and selling" to the concept of "sensing and responding is the best approach. Considering the emotional and rational bonds you have with customers is essential. Ensuring that you understand and leverage the role the unconscious mind plays in customer decision-making is foundational to your design. Becoming "Clue Conscious" of signals your experience sends in the language you use, physical space characteristics, and gestures by employees, among others, is critical to your success. Developing a robust system for clue management, along with a Clue-Conscious culture, is vital for your organization. Also, an outside perspective can help. As global Customer Experience consultants, we find that we can see experiences with new eyes. We often engage in what we call Customer Experience Health Checks, which involves us walking the experience as if we are customers, and conducting internal interviews to get an idea of the company culture. Then, we present our recommendations based on what we discover. Finally, remember to design not only for fixing problems but also for customer motivations. Whether it's feeling safe or feeling cared for, knowing what motivates customers to do business with you helps you design the right experience to give it to them. Solving problems often have too narrow a scope; widening your perspective will yield better results in the long-term. To discuss this further contact us at www.BeyondPhilosophy.com About Beyond Philosophy: Beyond Philosophy help organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). We then capitalize on this by improving your customer experience to meet these needs thereby retaining and acquiring new customers across the market. This podcast is produced by Resonate Recordings. Click here find out more.

The 5 Rules for Driving Down Costs Without Affecting Customers A lot of Behavioral Science can feel intimidating. However, it doesn't have to be. The Five Rules Podcast Series is our attempt at giving you an easy entry point into the complex and messy world of Behavioral Science. If you are like most businesses in 2020, you are facing a very different year for your bottom-line performance, and in many cases, it's not a good kind of different. Naturally, many organizations have responded to a tumultuous and tentative market for growth by balancing the business scales with cost-cutting measures. However, if you cut the wrong things in the wrong areas, you can end up making the situation worse. Don't get me wrong; cutting costs is essential in business, even when there isn't a global pandemic. The critical thing to remember is what to cut, when, and how so that you don't wonder later why everything went sideways. This episode of The Intuitive Customer covers my 5 Rules for Driving down costs without affecting customers. They might help you navigate the remaining weeks of 2020 with less turmoil than cutting costs without them. What Are The Five Rules? The 5 Rules for Driving Down Costs Without Affecting Customers Do not think there is one "silver bullet." Do not over-emphasize the easily-measured costs. Strive for balance. Look at the lifetime value of the customer. Select the areas that drive the least value for you. What Should You Do With Them? Do not think there is one "silver bullet." The first step is to avoid thinking that one big cut will make the business all balance out. A proper approach to cost-cutting is to cut a little in many areas, which, when added together, get you the cost savings you need. Perhaps even more importantly, small five percent cuts across several areas will be less traumatic for the organization than one massive one. Do not over-emphasize the easily-measured costs. Some cuts are easy to measure because the direct costs are in black and white. However, there are indirect costs associated with these items too. I would advise companies to consider all the costs for any item on the ledger before making any cuts. It could mean that you get to your goal faster with fewer cuts when you integrate all the costs associated with any item you eliminate. Strive for balance. First off, let me tell you that I have never been involved in a customer experience improvement program that has not resulted in cost savings. That's because poor experiences cost you money, too, in actual amounts and opportunities missed. Moreover, unintended consequences can result from any action, and especially when cutting expenses. Instead, I would ask that you look for ways to reduce costs that don't involve stopping something. It could be that adding budget to specific areas can prevent expenses from piling up in another place and improve the process simultaneously. Look at the lifetime value of the customers. Often, organizations only consider the annual value of a customer. However, depending on your customer lifecycle, that could only be a small percentage of their overall worth. When you consider the customer's real lifetime value, the expenses associated with providing a solution that costs more is less significant. Sure, you are out the expense in the short-term, but the long-term gains far outweigh them. Select the areas that drive the least value for you. Some parts of the experience might be more valuable than you think at first glance. It is essential to consider what customers use and appreciate most when making cuts. What you don't want to do is unwittingly cut the most important part of your experience in the interest of cost savings, and end up taking away what your most valuable customers loved the most. To discuss this further contact us at www.BeyondPhilosophy.com About Beyond Philosophy: Beyond Philosophy help organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). We then capitalize on this by improving your customer experience to meet these needs thereby retaining and acquiring new customers across the market. This podcast is produced by Resonate Recordings. Click here find out more.

How Well Do You Know What You Really Want? Have you ever bought a book you thought you should read and then didn't read it? Did you ever buy a variety of yogurt flavors and then throw out some of them after they expired because you never wanted that flavor when it was time to eat yogurt? We do these things because we often overestimate how much variety we want in the future. In psychology, it's called Naïve Diversification Bias, and it means that we are notoriously bad at predicting our future selves' wants. This episode of The Intuitive Customer explores this concept and what you can do about it for your customer experience. Key Takeaways As always, with the behavioral sciences, Naïve Diversification bias isn't the only thing that is happening when we make these forecasting errors. However, it is a significant driver of these decisions to overestimate our desire for variety in the future. Here are a few things to remember about this psychological concept that influences customer behavior: Research shows we choose the same thing in the moment, and more variety for the future. Itamar Simonson, Ph.D., The Sebastian S. Kresge Professor of Marketing at Stanford University, showed in the 1990s that we do this. When his students chose snacks for the next three weeks ahead of time, he saw that they picked more variety than when they decided the snack for the day each week. We all overestimate our need for variety in the future. Naïve Diversification bias is one we all share. Part of the reason we choose more variety in the future is that we think we want more variety than we do. When the future becomes the now, we are content with the same choice, usually our favorite one. Naïve Diversification Bias does not mean people do not want a variety of choices. People like having options, just not too many of them. However, most people don't know that they don't like having too many choices until they face them, and they feel overwhelmed. Mapping out customer behavior can help you identify Naïve Diversification Bias when it occurs. Many organizations participate in journey mapping, which is an excellent way to identify these moments in the customers' process. However, it does not show customer behavior. Behavioral Journey Mapping takes traditional journey mapping to a new level that helps you see what customers do and how their choices could be creating dissatisfaction for themselves. Recommended Actions There are a few ways to mitigate the consequences of this natural bias we all share. Here are our suggestions for combatting its effects in your customer experience: Be able to recognize Naïve Diversification Bias. It is essential to know what is when you see it. Identify where in your experience it occurs and the circumstances that surround that decision-making moment. Understand that customers change their minds. Knowing that regret is not an emotion that drives value for your bottom line, find ways to mitigate the effects of Naïve Diversification Bias in your experience whenever possible. We recommend discovering these moments by mapping customer behavior rather than process. Develop strategies to manage the potential negatives of the bias. To improve the experience for them, offer customers opportunities to remedy their wrong choices. Have a clear return policy or give them regular opportunities to re-evaluate their options in subscription services. Compress the time between choice and consumption. People make choices that create more satisfaction when the timeline between the decision and the time they use or consume the product is short. Whenever possible, it would be best to shorten this interval to facilitate customer satisfaction with their choices. Build filtered-diversification into your offer. When customers make decisions for future consumption, they want options. However, if you present too many choices, you can overwhelm customers. Therefore, we recommend offering a wide variety of products or services and a way to narrow down the field from which the customer can choose. This way, you offer enough choice to satisfy customers and prevent them from getting weighed down from too many options. To discuss this further contact us at www.BeyondPhilosophy.com About Beyond Philosophy: Beyond Philosophy help organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). We then capitalize on this by improving your customer experience to meet these needs thereby retaining and acquiring new customers across the market. This podcast is produced by Resonate Recordings. Click here find out more.