The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth Colin Shaw, Beyond Philosophy LLC

Various motivational biases and emotions shape customer experiences, emphasizing the need for a holistic approach to designing experiences. For example, the customer’s mood significantly impacts the customer’s decision-making processes.
 
Today's discussion highlights why understanding the customer’s mood and managing customer emotions helps you achieve your desired experience outcomes. It also identifies twenty emotions driving or undermining value, stressing the necessity of specificity in emotional goals. 
 
We also cover the Affect Heuristic and Mood Management Theory, two prominent theories in psychology that are particularly relevant to our discussion on the role of emotion in decision-making. Here’s why:
 
The Affect Heuristic suggests that our intuitive choices are often guided by emotional responses, with a preference for positive experiences. This has practical implications for businesses in terms of designing customer experiences that evoke positive emotions. 
 
Mood Management Theory posits that our decisions are often driven by the desire to regulate our mood, seeking pleasure or alleviating discomfort. This theory helps us understand the role of mood in decision-making and its potential impact on customer experiences.
 
Context, culture, and age also influence mood and emotional responses. We discuss how cultural predispositions and life stages shape emotional goals and needs (which also explains why Colin’s Smiley Face Buttons on Etsy won’t sell like hotcakes in England). 



In this episode, we underscore the importance of recognizing and understanding the impact of mood on decisions. We also explore the power of positive thinking in shaping perceptions and responses to reality while acknowledging its limitations in influencing external outcomes. Additionally, we advocate for a diagnostic approach to customer emotions and behavior and capitalizing on positive or managing negative moods.
 
Here are a few key points we make in the podcast:
 
Mood significantly influences decision-making processes, so understanding and managing customer emotions, which we covered in another episode recently, are crucial for designing effective experiences.
Specific emotional goals are essential for achieving desired outcomes, so if you don’t have them, you should make them now.
Context, culture, and age also influence mood and emotional responses.
Why Colin and Ryan represent both the best and the worst culture has to offer regarding positive or negative outlooks on life. 
Positive thinking can shape perceptions and responses to reality but can’t change reality; so think positive but work hard—and don’t walk barefoot over a field of hot lava because you “think you can.”
 

This has been created in partnership with NICE.

AI is a significant development in experience management, but many organizations need help with its implementation. While experimenting with AI, like ChatGPT, offers a glimpse of its potential, it's challenging to understand how AI fits into the broader tech stack and business systems.
 
In today’s episode, Elizabeth Tobey, Head of Marketing for Digital and AI for NICE ) NICE, an AI platform, shares insights on effectively using AI to enhance experiences. 
 
This video summarizes what I see happening in many organizations regarding implementing AI.
 
Tobey says that many organizations have told her they don’t know where to start. She emphasizes the importance of beginning with impactful AI use cases and setting clear KPIs to measure success post-deployment. NICE's suite of solutions helps identify pain points within a company, enabling targeted AI implementations, such as Enlighten XO, which stands for experience optimization.
 
However, implementing AI requires overcoming siloed approaches and investing in third-party solutions due to resource limitations and expertise within organizations. Customizing AI models for specific customer experiences is crucial, as different experiences require different approaches. 
 
In other words, you don’t want the same experience buying a luxury car as returning running shoes. One must feel posh and comprehensive, while the other should be quick and easy. (We’ll let you guess which is which.)
 
Tobey advises that to sell AI within an organization, one should focus on solving business problems rather than promoting AI. Managing expectations about AI capabilities is essential, as AI alone cannot solve all problems. Instead, AI should complement existing technology, culture, and business objectives.
 
Tobey suggests clearly understanding success criteria and providing data to potential partners to demonstrate realistic outcomes. Building relationships with partners invested in success ensures alignment with business needs and fosters growth opportunities.
 
In this episode, we will also discuss:
 
The importance of understanding AI nuances and use cases across different organizational roles.
How AI solutions should align with existing technology and business objectives.
The role of partnerships in AI implementation and success.
Managing expectations and avoiding overreliance on AI.
The evolution of AI technology and its potential impact on businesses.
Customizing AI solutions to address specific business challenges.
Leveraging AI to enhance customer experiences and drive business growth.
 

A Master Class Part 3: Unlocking the Psychology of Customer Experience
In the third episode of our Master Class series on the Psychology of Customer Experience, we delve into how other people influence our behavior. Understanding these theoretical dynamics is practical, empowering you to design effective Customer Experiences.
Robert Cialdini's research on influence is a cornerstone of understanding social dynamics and persuasion techniques. In this episode, we rely heavily on his groundbreaking work.
First, let’s consider Social Proof. Social Proof is a concept that describes how the actions and preferences of others influence people. Two examples that demonstrate how this works are the idea of trending, or the tendency to like something if others do, and the fear of missing out (FOMO), which drives people to join in activities or trends.
Reciprocity influences behavior, too. Reciprocity is the idea that people respond positively to kindness and favors. Many times, people who have been on the receiving end of kindness will return that behavior.. However, acts of kindness that inspire reciprocity must be genuine. If they come with the expectation of something in return, they will not produce the same results.
Scarcity is a persuasive tactic that capitalizes on the limited availability of a product or service to create a sense of urgency and desirability. It can be seen in online shopping carts indicating low stock or limited time offers presented during a cruise.
In this episode, we provide an overview of many of these social dynamics that influence customer behavior in your experience. Understanding social dynamics and influence can inform strategic decisions in customer experience design, including marketing campaigns, sales techniques, and product positioning. Best of all, Colin uses his serious “Master-Class” voice, which tells you that he really knows what he is talking about.
 
In this episode, you will also discover:
The concept of Social Proof and how it influences consumer behavior.
The power of Reciprocity and how acts of kindness can drive customer loyalty.
How Scarcity tactics can create a sense of urgency and increase demand for products or services.
Examples of these influence techniques in real-world scenarios, like online shopping cart messages and to-good-to-be-true cruise line offers.
The importance of considering social influences throughout the customer journey.
Strategies for leveraging social dynamics to enhance customer experiences and drive sales.

Quality assurance is crucial in Customer Experience Management, and assessing call center operations provides valuable insights into an organization's customer-centricity. The subject of today’s episode is the result of our None of Use is Clever as All of Us feature. One of our listeners, Jamie Scott of Evaluagent shared his thoughts on Quality Assurance and the problems organizations have regarding this area.
Observations and conversations with call center agents reveal operational inefficiencies and training gaps that impact the overall customer experience. Scott highlights key issues with traditional quality assurance practices and offers insights into leveraging AI for enhanced customer service. 
Scott emphasizes the importance of viewing AI as a tool rather than a replacement for human agents and advocates for analyzing all customer interactions to gain comprehensive insights. He underscores the need to focus on the emotional aspects of customer interactions and suggests using AI to predict and diagnose customer sentiments across various channels. 
However, challenges such as siloed AI implementations and focusing on rational data in quality assurance metrics hinder progress in this area. 
In this episode, we explore Scott's topic and how it can help you with your Quality Assurance efforts. Despite these challenges, there are actionable strategies for customer service and quality management professionals.
 
In this episode, you will also discover:
The significance of assessing call center operations for understanding an organization's customer-centricity.
Insights from Jamie Scott on leveraging AI and overcoming challenges in quality assurance practices.
The importance of viewing AI as a tool to enhance human decision-making rather than a replacement for human agents.
Strategies for analyzing all customer interactions to gain comprehensive insights and identify areas of improvement.
The need to focus on emotional aspects of customer interactions and incorporate emotional metrics into quality assurance practices.
Practical tips for implementing a top-down approach to delivering the desired customer experience and measuring targeted emotions across all customer touchpoints.

A Master Class Part 2: Unlocking the Psychology of Customer Experience
In this episode, we continue exploring the psychology behind Customer Experience, focusing on the role of memory. Customer loyalty hinges on how memories are formed and retained. Therefore, understanding memory formation is crucial for designing impactful experiences.
Memory formation begins with encoding, where new information is processed and stored in the mind. Encoding involves several effects, including the Primacy Effect, which prioritizes remembering initial experiences, and the Recency Effect, which emphasizes recollecting recent events. Additionally, the Frequency Effect highlights the importance of repeated actions in memory retention.
Retrieval effects determine how stored memories are recalled. Professor Daniel Kahneman's Peak-End Rule suggests that people remember the most intense emotion experienced during an event and its conclusion. This rule applies to evaluative memory, shaping overall perceptions of past experiences.
Memory also has structure. Memory structure resembles a fishing net, with individual memories as knots connected to form a net, which represents the larger memory network. Retrieving one memory often triggers the recall of associated memories, along with the emotions and experiences linked to them. It’s helpful to picture the fishing net at the bottom of a shallow pool and imagine pulling it by one of the knots to the surface. You get the knot you grabbed, but all the connected knots come along, too.
Strategically managing memory formation involves planning for encoding, recall, and structure. Tactics such as leveraging primacy and recency, incorporating humor or emotional connections, and providing follow-up reminders can enhance memory retention. It's crucial to prioritize memorable aspects of the experience and reinforce positive memories over time.
Considering the interconnected nature of memory concepts, such as the relationship between encoding and recall, helps design experiences that leave a lasting impression. For instance, understanding how customers perceive value allows you, as a professional, to highlight key features that resonate with your target audience, instilling confidence in your ability to create memorable customer experiences.
In this episode, we discuss how memory plays a significant role in driving customer loyalty, making it essential to proactively shape how customers remember their experiences. By being deliberate about memory formation, businesses can create meaningful connections and foster enduring relationships with their customers.
 
In this episode, you will also learn:
The importance of encoding and retrieval in memory formation.
Strategies for enhancing memory retention, such as leveraging Primacy and Recency effects.
The role of emotional connections in shaping memorable experiences.
The significance of follow-up communication in reinforcing positive memories.
How memory structure influences the recall of associated experiences.
The interconnected nature of memory concepts and their implications for experience design.

A Master Class: Unlocking The Psychology of  Customer Experience
With this episode, we begin an eight-part series exploring customer behavior and the psychology that drives it. Each part will delve into the various psychological aspects of Customer Experiences, offering practical advice on understanding and influencing them. Our focus today is on why customers make quick decisions and how you can sway those decisions in your favor.
Understanding customer behavior is complex and influenced by multiple factors, a concept known in academic circles as high causal density. There's no one-size-fits-all solution for a perfect Customer Experience transformation; it requires a combination of approaches.
Human nature often seeks shortcuts for cognitive tasks, leading to heuristic processes. Heuristics, or mental shortcuts, simplify decision-making. We discuss four common heuristics:
Anchoring and Adjustment: People use familiar examples to estimate values quickly, which can lead to biases, especially in pricing strategies.
Focusing Effect: When faced with information overload, individuals focus on crucial details to aid decision-making. Recognizing what customers prioritize can influence their choices.
Availability Heuristic: Our brains estimate likelihood based on easily accessible examples. Understanding what information customers readily recall helps shape perceptions.
Representativeness: People often categorize based on stereotypes or representative traits. Recognizing customer expectations can guide your design approach.
Considering these heuristics, we emphasize the importance of first impressions, understanding customer values, managing expectations, and aligning your design with customer decision-making shortcuts. Recognizing the diversity in customer decision-making preferences is crucial, and segmentation plays a vital role in tailoring experiences.
This episode explores various influences and group psychological concepts tied to customer decisions. Our goal is to provide a holistic understanding of experience psychology, making you more agile in grasping customer behavior and creating plans for compelling experiences that encourage return visits.
 
In this episode, you will also learn:
The significance of first impressions and their impact on customer anchors.
How to identify valuable areas for customers and use them for effective comparisons.
The role of customer expectations and how to align your design with their anticipated experiences.
The importance of providing information shortcuts to simplify decision-making.
Strategies for segmentation to cater to diverse customer decision-making preferences.
The overarching theme of simplification as a design approach offers customers shortcuts to decision-making and potential sales.