#41 | DCX - Perspectives and insights on digital customer experience
The Psychology of CX: Delving into the Human Mind; Linkedin Poll of the Week; Links to Industry news, ideas, insights, and the DCX Thought Leader Linkedin Profile of the week
The Psychology of CX: Delving into the Human Mind
As a customer experience leader, it's essential to have a comprehensive understanding of the psychology behind customer experience. This knowledge enables you to create effective strategies that resonate with customers on a cognitive and emotional level.
By understanding how customers perceive your brand, you can personalize your approach, leading to more meaningful and long-lasting relationships with your customers.
Let’s explore some psychological concepts influencing customer experience and how you can harness these insights to create memorable and satisfying customer interactions.
The Role of Emotions
Emotions play a significant role in shaping the customer experience. According to a study by the Harvard Business Review, emotionally connected customers are more than twice as valuable as highly satisfied customers. This implies that businesses should focus on creating emotional connections with their customers rather than merely ensuring their satisfaction.
Different customer experience factors, such as ambiance, the level of service or product quality, and interaction with employees, can spark emotional reactions. Apple stores, for instance, create an impression of exclusivity and customization through their minimalistic decor and attentive staff, which foster emotional bonds with their customers.
To create an emotional bond with your customers, focus on understanding their needs, preferences, and desires. Then, leverage these insights to develop tailor-made experiences that appeal to their emotions and make them feel valued.
The Power of Expectation and Confirmation Bias
Customers enter every interaction with a set of expectations based on their past experiences, personal beliefs, and the image a brand projects. When their expectations are met or exceeded, they are more likely to have a positive experience and become loyal to the brand.
Confirmation bias is a psychological phenomenon where individuals seek, interpret, and remember information confirming their beliefs. In the context of customer experience, customers are more likely to notice and remember aspects of an interaction that align with their expectations.
To leverage the power of expectation and confirmation bias, you can:
Communicate your brand promise and ensure that every touchpoint delivers on that promise.
Consistently meet or exceed customer expectations by continuously gathering feedback and making improvements.
Train your employees to be aware of customer expectations and equip them with the skills and knowledge to exceed them.
The Peak-End Rule
The Peak-End Rule, a psychological concept, suggests that people judge experiences based on the most intense moment (the peak) and the final moments (the end). In other words, customers are more likely to remember the best and worst parts of their experience and how it concluded.
To capitalize on the Peak-End Rule, you can:
First, identify the peak moments in the customer journey and invest resources in enhancing those experiences.
Pay special attention to the end of the customer journey, ensuring that the experience concludes positively.
Minimize negative experiences and promptly address customer complaints or issues.
The Importance of Social Proof
Social proof is a psychological phenomenon where people conform to the actions of others, assuming that they possess more information about a situation. In the context of customer experience, social proof can manifest through customer reviews, testimonials, or influencer endorsements.
To harness the power of social proof:
Encourage customers to share their positive experiences on review platforms and social media.
Highlight customer testimonials on your website and marketing materials.
Collaborate with influencers who align with your brand values to reach a broader audience and build credibility.
The Principle of Reciprocity
The Principle of Reciprocity states that people feel obligated to return favors or kindness. You can apply this principle to enhance customer experience by providing exceptional value, offering unexpected gifts or discounts, or delivering personalized services.
For example, online retailer Zappos is known for its outstanding customer service, which often includes surprise upgrades to expedited shipping, personalized thank-you notes, and even occasional gifts. These acts of generosity create a sense of indebtedness, making customers more likely to become loyal and make repeat purchases.
To apply the Principle of Reciprocity, you can:
Offer value-added services or products that surprise and delight customers.
Train employees to go above and beyond in providing personalized assistance and support.
Implement a robust loyalty program that rewards customers for their continued patronage.
The Influence of Cognitive Dissonance
Cognitive dissonance occurs when individuals experience mental discomfort due to conflicting beliefs, attitudes, or values. In customer experience, cognitive dissonance can arise when customers have to justify the effort, time, or money spent on a product or service that did not meet their expectations.
To minimize cognitive dissonance and improve customer experience:
Ensure their products or services meet or exceed customer expectations.
Offer hassle-free returns and exchange policies, making customers confident in purchasing decisions.
Provide accurate and transparent information about products or services, setting realistic customer expectations.
As a customer experience leader, staying informed about the latest psychological research and trends is crucial. Incorporating these insights into your organization's customer experience strategy will help you stay ahead of the competition and create lasting connections with your customers.
Remember that excellent customer experience is not a one-time effort but a continuous process of understanding, adapting, and evolving to meet and exceed the ever-changing needs of your customers.
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DCX Linkedin Poll of the Week
This week I was interested in learning more about what our colleagues in the Customer Experience Professionals Group on Linkedin enjoyed the most in their work. Thanks to the over 200 that responded.
The results were - neck and neck. Connecting with customers and Identifying pain points are by far the favorite activities of this audience. And I agree - nothing better than finding an issue impacting a customer and figuring out how and when to fix it.
Hearing about those issues live from customers is an even better way to see how those challenges impact the relationship and sentiment. Thanks for all the great feedback!
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Links to Industry news, ideas, insights, and the DCX Thought Leader Linkedin Profile of the week
One big thing: How chatbots could change us
Researchers are studying the impact of AI-driven text and image generators, like GPT, on human creativity, judgment, and decision-making. Generative AI has the potential to be a "launchpad for creativity" due to its ability to produce multiple possibilities, but concerns arise over its influence on productivity and originality.
The introduction of AI in the workplace raises questions about its social influence trust, and how it changes interactions compared to human colleagues. For example, people prefer human judgment but favor algorithmic advice for specific predictions. Researchers are also examining if co-creating with AI affects the meaning of work.
As generative AI tools might influence critical thinking, learning to work with them could become a new job skill. The key challenge is understanding how AI changes human responses to various situations.
ChatGPT Responds to Common Customer Support Queries | HackerNoon
The Hacker Noon article discusses how ChatGPT, powered by OpenAI's GPT, can effectively handle customer support queries in various sectors. By integrating ChatGPT, businesses can reduce response times, improve customer satisfaction, and cut operational costs.
However, the AI model may sometimes generate irrelevant or incomplete answers. Thus, using ChatGPT alongside human operators is recommended to maintain high-quality customer support.
Uber redesigns app for simpler, more personalized experience | TechCrunch
Uber recently released an updated version of its app that aims to simplify and personalize the experience for customers. The new app has a more straightforward home screen that removes the friction of a few extra taps when booking a ride or ordering a delivery. It also allows customers to more easily access saved locations, and some iPhone users can track a ride’s progress on their lock screen.
“Click-to-cancel” rule would penalize companies that make you cancel by phone | Ars Technica
The Federal Trade Commission is proposing a "click-to-cancel" rule. If approved, the plan "would put an end to companies requiring you to call customer service to cancel an account that you opened on their website" The proposed rule would be enforced with civil penalties and let the commission return money to harmed consumers.
DCX Thought Leader Linkedin Profile of the week
Every week, I share a person's profile from Linkedin that I think will benefit your life and career.
This week’s profile is on Kerry Bodine, founder of Bodine & Co, and so much more.
Kerry Bodine is a renowned customer experience expert, consultant, and co-author of "Outside In - The Power of Putting Customers at the Center of Your Business."
With over 20 years of experience, she helps organizations implement customer-centric strategies. Before launching her consulting firm, she served as a vice president and principal analyst at Forrester Research, where she led the firm's customer experience practice. During her tenure, she guided numerous companies in optimizing their customer journeys and establishing best practices to enhance customer satisfaction and loyalty. In addition, Kerry has spoken at global conferences and contributed to Forbes, Harvard Business Review, and Fast Company.
Kerry's unique blend of research, real-world experience, and passion for customer experience has established her as a leading authority in the field, inspiring businesses to transform their customer interactions and cultivate lasting relationships.
I highly recommend following Kerry.
I recently joined the University of California Riverside, Extension team as a Program Advisor for the Transformative Leadership Program. The UCR University Extension Transformative Leadership in Disruptive Times Program offers practical advice to move from transactional terms to true, transformational outcomes.
I have the fantastic opportunity to work with respected leaders on this critical initiative. If you don’t know about this program, I highly recommend it! Send me a note, and I’ll send you my 50% ADVISOR DISCOUNT code.
Thank you for reading this week.
Please share with others you think would benefit.