Customers are irrational: Stop fighting it!

Transcription

1 Customers are irrational: Stop fighting it! Colin Shaw Founder and CEO, Beyond Philosophy Zhecho Dobrev Consultant Beyond Philosophy www.

2 Webinar Interface Review 1. Viewer Window 2. Control Panel Beyond Philosophy All rights reserved 2

3 Who are Beyond Philosophy? We are pioneers in the Customer Customer Experience is all we space. do! We work in many countries across several continents Thought leadership is our differentiator. We have literally written the books on Customer Experience. We put emphasis on the emotional side of customer experience We maintain links with academia to keep us aligned with the latest breakthroughs Evidence based consulting - we look for what really drives business value Beyond Philosophy All rights reserved 3

4 Some of our clients Beyond Philosophy All rights reserved 4

5 Traditional way of looking at Customers Beyond Philosophy

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10 The transactional experience transfers into social media Beyond Philosophy

11 Process or Experience? www.

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16 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

17 Rational and Conscious Emotional and Subconscious Beyond Philosophy

18 The emotional Customer Experience www.

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20 Credit card company example 1 Getting a Card 2 Using my Card 3 Servicing my Account 4 Extending my Relationship Having Financial Difficulty 5 6 Ending my Relationship Beyond Philosophy

21 The subconscious experience www.

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23 The key to unlock the Customer brain Experience Psychology 23

24 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.. Beyond Philosophy

25 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

26 How we make decisions - what are the subconscious signals? Beyond Philosophy

27 We reference our memory to give this experience meaning Beyond Philosophy

28 Prospect theory - Kahneman and Tversky 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

29 Practical examples www.

30 SHOULD Will Beyond Philosophy

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32 What customers say they desire What drives business value Beyond Philosophy All rights reserved 32

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34 Middle East Telecommunications Company Product quality versus emotional engagement Beyond Philosophy

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

36 Designing a new experience eyond Philosophy www.

37 Mapping the Credit Card Journey Awareness Getting the card Recommended by a friend/ direct mail Evaluation of offer Web search Conversation with the agent Application Wait for confirmation Still interested? No Exit Getting the card Cross sold by an agent Yes Yes Yes Are you just about to? No Yes Are you aware of the waiting time? Fill in enrollment forms or call Company PP Benefit 2 Partners Direct Debit No Do you need your DD and supp cards transferred? Receipt of Welcome pack No Did you miss it? Receipt of call / confirmation Yes No Chase: Benefit 1 Benefit 2 Wait Receive Benefit 1 & Benefit 2 Cards Receive Statement Is it all clear to you i.e. DD set up etc? Yes Call to book / tickets Call to authorise someone to act on my behalf No Call XXX to check status of Benefit 1 card Call Benefit 1 to ask about membership number Call to chase the DD Receive DD cancellation letter 2 nd call to chase the DD Download 3 rd party authorisation form online PA to call to book on CM s behalf Call Benefit 1 to check status of card 2 nd Call to XXX to check status of PP card Receipt of Supp card Send signed form via post or fax Wait 10 days for a response from XXX via the post Apply for a supplementary card online Fill in & Acct Disclosure & Authorisation form 2 nd call to authorise someone to act on my behalf Beyond Philosophy

38 Negative Emotion Points Cognitive Dissonance Awareness Getting the card Recommended by a friend/ direct mail Evaluation of offer Web search Conversation with the agent Application Wait for confirmation Still interested? No Exit Getting the card Cross sold by an agent Yes Cognitive Dissonance Yes Yes Are you just about to? Yes No Yes No Are you aware of the waiting time? Peak End Rule Fill in enrollment forms or call Company PP Benefit 2 Partners Direct Debit No Do you need your DD and supp cards transferred? Prospect Theory Receipt of Welcome pack No Did you miss it? Receipt of call / confirmation Chase: Benefit 1 Benefit 2 Wait Receive Benefit 1 & Benefit 2 Cards Receive Statement Is it all clear to you i.e. DD set up etc? Yes Call to book / tickets Call to authorise someone to act on my behalf No Call XXX to check status of Benefit 1 card Call Benefit 1 to ask about membership number Call to chase the DD Receive DD cancellation letter 2 nd call to chase the DD Download 3 rd party authorisation form online PA to call to book on CM s behalf Call Benefit 1 to check status of card 2 nd Call to XXX to check status of PP card Receipt of Supp card Send signed form via post or fax Wait 10 days for a response from XXX via the post Apply for a supplementary card online Fill in & Acct Disclosure & Authorisation form 2 nd call to authorise someone to act on my behalf Beyond Philosophy

39 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. Maersk Line Training improves Net Promoter Scores in local regions. Maersk Webinar gave regional divisions June the option of putting 21 regional customer experience councils in place. The 55 regions that st 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

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