Consumer Psychology: How to Influence Customer Decisions
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1 Consumer Psychology: How to Influence Customer Decisions Beyond Philosophy www.
2 Colin Shaw CEO & Founder Beyond Philosophy Professor Ryan Hamilton Consumer Psychology Emory University 2
3 Beyond Philosophy introduction Customer Experience is Customer Experience is all we do.. Since 2002! all we do! We work globally with offices in US & London With partners in Africa & Asia. Thought leadership is our differentiator We focus on the emotional side of customer experience New book in 2015 Evidence based consulting & training 3
4 NPS 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. 4
5 Examining Customer Psychology: Course Outline Module 1: Reinforcement and Habit Module 2: Framing, Nudging, and Choice Architecture Module 3: The 4 Ways Customers Make Decisions 5
6 Examining Customer Psychology 6
7 Examining Customer Psychology 7
8 Examining Customer Psychology: Course Outline Module 1: Reinforcement and Habit Module 2: Framing, Nudging, and Choice Architecture Module 3: The 4 Ways Customers Make Decisions 8
9 Module 1: Reinforcement and Habit Consistency is easy. Reconsideration and reevaluation are hard. 9
10 Module 1: Reinforcement and Habit Reinforcement Behavior Beliefs Habit 10
11 Reinforcement + 11
12 Reinforcement Description only Description + social responsibility Experts Non-experts Taste ratings 13
13 Module 1: Reinforcement and Habit Reinforcement Behavior Beliefs Habit 14
14 Habit Formation (in Humans) 1. Cue or Trigger (i.e., Stimulus) - Example: You re in the toothpaste aisle of the grocery store you ve been shopping in for years 2. Routine or Behavior (i.e., Response) - Example: You reach for the same brand of toothpaste, located in the same place on the shelf, that you ve been buying for years 3. Reward - Example: You forego the effort of processing all that information and making difficult tradeoffs 15
15 Habit 16
16 Examining Customer Psychology: Course Outline Module 1: Reinforcement and Habit Module 2: Framing, Nudging, and Choice Architecture Module 3: The 4 Ways Customers Make Decisions 17
17 Module 2: Framing 18
18 Module 2: Framing, Nudging, and Choice Architecture 19
19 Module 2: Framing 75% lean 25% fat 20
20 Module 2: Framing % lean % fat Taste Quality Leanness Ratings on a 7-point scale 21
21 Module 2: 5 Types of Information Framing Status quo framing Decision framing Missing information framing Gain/Loss framing Opportunity cost framing 22
22 Examining Customer Psychology: Course Outline Module 1: Reinforcement and Habit Module 2: Framing, Nudging, and Choice Architecture Module 3: The 4 Ways Customers Make Decisions 23
23 Module 3: The 4 Ways Customers Make Decisions Type of Comparison Subjective Level of Evaluation Specific General Objective 25
24 Module 3: The 4 Ways Customers Make Decisions Type of Comparison Subjective Dream House Decisions Level of Evaluation Ideal Point Decision Making Specific General Objective 26
25 Module 3: The 4 Ways Customers Make Decisions Type of Comparison Subjective Level of Evaluation Specific Digital Camera Decisions General Market Comparison Decision Making Objective 27
26 Module 3: The 4 Ways Customers Make Decisions Level of Evaluation Subjective Type of Comparison Specific Menu Decisions Local Comparison Decision Making General Objective 28
27 Module 3: The 4 Ways Customers Make Decisions Type of Comparison Subjective Bottled Water Decisions Level of Evaluation Image Decision Making Specific Objective General 29
28 Examining Customer Psychology: What You Will Learn The reasons some customer beliefs are self-reinforcing How to encourage favorable habit formation in your customers What you can do to jar customers out of unfavorable habits The 5 different ways information can be framed Engineering favorable choice settings The 4 different ways customers make decisions How to anticipate and diagnose the decision making styles of your customers How to design offerings for different styles of customer decision making 30
29 Webinar exclusive deals Foundation Customer Experience Management Certification Course - $1,850 Starting 6 th Oct 17th Nov 2014 Discount Code WEBINAR200 - $200 Off Exploring Consumer Psychology - $499 Starting 21 st Oct 4 th Nov 2014 Discount Code WEBINAR25 - $25 Off Customer Experience Measurement- $499 Starting 5 th Nov 19 th Nov 2014 Discount Code WEBINAR25 - $25 Off Visit
30 Questions www. 32
Seven key strategic questions critical to improving your Customer Experience Colin Shaw Founder & CEO Beyond Philosophy
Seven key strategic questions critical to improving your Customer Experience Colin Shaw Founder & CEO Beyond Philosophy www. Who are Beyond Philosophy? Customer Experience is is all we do.. Since 2002!
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