customer are irrational stop fighting
Post on 19-Oct-2014
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Learn why customer are irrational and what you can do about it.TRANSCRIPT
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www.beyondphilosophy.com
Customers are irrational: Stop fighting it!
Colin Shaw
Founder and CEO,
Beyond Philosophy
Zhecho Dobrev
Consultant
Beyond Philosophy
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beyondphilosophy.com
Webinar Interface Review
1. Viewer Window 2. Control Panel
2 Beyond Philosophy © 2001 - 2012
All rights reserved
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beyondphilosophy.com
Who are Beyond Philosophy?
We work in many countries
across several continents Customer Experience is all
we do!
We are pioneers in the
Customer Experience
space.
Thought leadership is our
differentiator. We have literally written
the books on Customer Experience.
Evidence based consulting -
we look for what really drives
business value
We maintain links with
academia to keep us aligned
with the latest breakthroughs
We put emphasis on the
emotional side of customer
experience
3 Beyond Philosophy © 2001 - 2012
All rights reserved
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beyondphilosophy.com
Some of our clients…
4 Beyond Philosophy © 2001 - 2012
All rights reserved
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Traditional way of looking at Customers…
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© Beyond Philosophy. 2001-2012 All rights reserved 6
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beyondphilosophy.com Beyond Philosophy © 2001-2012 All rights reserved.
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The transactional experience transfers into
social media…
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www.beyondphilosophy.com
Process or Experience?
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beyondphilosophy.com Beyond Philosophy © 2001-2012 All rights reserved.
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beyondphilosophy.com Beyond Philosophy © 2001-2012 All rights reserved.
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beyondphilosophy.com
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.
Beyond Philosophy © 2001-2012 All rights reserved.
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Rational and Conscious
Emotional and Subconscious
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www.beyondphilosophy.com
The emotional Customer Experience
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beyondphilosophy.com
Beyond Philosophy © 2001-2012 All rights reserved.
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Getting a Card 1
Ending my Relationship Extending my Relationship
Servicing my Account Using my Card 2 3
4 Having Financial Difficulty 5 6
Credit card company example…
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The subconscious experience
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beyondphilosophy.com
Beyond Philosophy © 2001-2012 All rights reserved.
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beyondphilosophy.com
The key to unlock the Customer brain
Experience Psychology 23
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beyondphilosophy.com
Sometimes we don’t know about the things that influence us, we just subconsciously perceive them…
I am acting in a certain way, but not sure why…..
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beyondphilosophy.com
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
Beyond Philosophy © 2001-2012 All rights reserved.
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How we make decisions - what are the subconscious signals?
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We reference our memory to give this experience meaning
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beyondphilosophy.com
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”
Beyond Philosophy © 2001-2012 All rights reserved.
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www.beyondphilosophy.com
Practical examples
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SHOULD
Will 30 Beyond Philosophy © 2001-2012
All rights reserved.
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beyondphilosophy.com
What customers
say they desire
What drives
business value
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beyondphilosophy.com
Middle East Telecommunications Company
Product quality versus
emotional engagement
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beyondphilosophy.com
Priority Order of the Attributes (Combined desirability and current value) – Premium Consumers
To
p T
en
0 + -
Desired by Customer Effect on Value
Beyond Philosophy © 2001-2012 All rights reserved.
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www.beyondphilosophy.com
Designing a new experience
Beyond Philosophy © All rights reserved. 2001-2010
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beyondphilosophy.com
Getting the card
Recommended by a
friend/ direct mail
Evaluation of offer
•Web search
•Conversation with the
agent
Still
interested?
Yes
Receipt of call /
confirmation
Awareness
No Did you
miss it?
Getting the card
Cross sold by an agent
Application Wait for confirmation Exit
Receipt of
Welcome pack
Fill in enrollment forms
or call Company
•PP
•Benefit 2 Partners
•Direct Debit
Do you need
your DD and
supp cards
transferred?
Are you
aware of the
waiting time?
Are you
just about
to ?
Yes
No
Chase:
• Benefit 1
• Benefit 2
Yes
Wait
No
Receive
Benefit 1 &
Benefit 2 Cards
Receive
Statement
Is it all clear
to you i.e.
DD set up
etc?
Call to book /
tickets Yes
No
Call to chase the
DD
Receive DD
cancellation
letter
2nd call to chase
the DD
Call to authorise
someone to act
on my behalf
Download 3rd
party
authorisation
form online
PA to call to
book on CM’s
behalf
2nd call to
authorise
someone to act
on my behalf
Apply for a
supplementary
card online
Wait 10 days for
a response from
XXX via the
post
Call XXX to check
status of Benefit 1
card
Call Benefit 1 to
check status of card
Call Benefit 1 to ask
about membership
number
2nd Call to XXX to
check status of PP
card
Yes
No
Fill in & Acct
Disclosure &
Authorisation
form
Send signed
form via post or
fax
Yes
No
Mapping the Credit Card Journey
Receipt of
Supp card
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beyondphilosophy.com
Cognitive
Dissonance
Peak End
Rule
Prospect
Theory
Cognitive
Dissonance
Getting the card
Recommended by a
friend/ direct mail
Evaluation of offer
•Web search
•Conversation with the
agent
Still
interested?
Yes
Receipt of call /
confirmation
Awareness
No Did you
miss it?
Getting the card
Cross sold by an agent
Application Wait for confirmation Exit
Receipt of
Welcome pack
Fill in enrollment forms
or call Company
•PP
•Benefit 2 Partners
•Direct Debit
Do you need
your DD and
supp cards
transferred?
Are you
aware of the
waiting time?
Are you
just about
to ?
Yes
No
Chase:
• Benefit 1
• Benefit 2
Yes
Wait
No
Receive
Benefit 1 &
Benefit 2 Cards
Receive
Statement
Is it all clear
to you i.e.
DD set up
etc?
Call to book /
tickets Yes
No
Call to chase the
DD
Receive DD
cancellation
letter
2nd call to chase
the DD
Call to authorise
someone to act
on my behalf
Download 3rd
party
authorisation
form online
PA to call to
book on CM’s
behalf
2nd call to
authorise
someone to act
on my behalf
Apply for a
supplementary
card online
Wait 10 days for
a response from
XXX via the
post
Call XXX to check
status of Benefit 1
card
Call Benefit 1 to
check status of card
Call Benefit 1 to ask
about membership
number
2nd Call to XXX to
check status of PP
card
Yes
No
Fill in & Acct
Disclosure &
Authorisation
form
Send signed
form via post or
fax
Yes
No
Negative Emotion Points
Receipt of
Supp card
38 Beyond Philosophy © 2001-2012 All rights reserved.
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beyondphilosophy.com
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
additional volume shipped by customers”.
Training improves Net Promoter Scores in local regions.
“Maersk gave regional divisions the option of putting regional
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”.
Beyond Philosophy © 2001-2012 All rights reserved.
Maersk Line
Webinar June 21st
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www.beyondphilosophy.com
Beyond Philosophy © 2001-2012 All rights reserved.
@ColinShaw_CX
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