Psychology of Buying: Why 'Mental Accounting' is Critical to the Decision to Buy
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
Release Date: 02/24/2024
Why Customers Make Instant Decisions And How To Effect it
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
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...
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How to Use Psychology to Build Customer Loyalty That Creates ROI
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
In this episode, Colin and Ryan tackle a listener's question about the psychology of customer loyalty, delving into its emotional and relational aspects. Loyalty, they explain, goes beyond mere repetition of behavior; it is rooted in deep emotional attachment and often requires sacrifice. Drawing parallels to personal experiences, such as loyalty to sports teams (Lutown Town Football Club, recently reinstated in the Premiership) and brands like Apple (naturally), they highlight the importance of trustworthiness and the willingness to go the extra mile in fostering loyalty. They...
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How to Craft Compelling Stories to Unlocking True Customer Engagement
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
“Did I tell you about the time I …” These seven words are one of many ways we signal one of our favorite things is coming next: a story. We can’t get enough of stories and look for them everywhere, from news to conversations to the commercials we can’t avoid on TV. Stories are an essential part of the human experience. In today's world, storytelling is crucial in various aspects of business, including marketing. Human fascination with narratives stems from their ability to captivate attention, evoke emotions, and aid memory retention. Stories provide context,...
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Privacy vs. Personalization: Striking the Right Balance to Drive Success
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
Personalization is an excellent tactic for your marketing efforts. However, only some people like this personalization; some feel they're being watched. Therefore, it is important to remember that context and who's doing the personalizing matter. Picture this: Colin’s at his go-to fishing store, Discount Tackle. The manager knows him, we chat, and he recommends a lure. Even though Colin can snag it cheaper elsewhere, the personalized touch keeps him coming back. We've all got our versions of this – the local diner, your loyal barber, or maybe a small biz that fuels your...
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Do You Really Understand Your Customer's Hidden Motivation? Here's How to Do This...
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
Customer emotions heavily influence experiences and motivate actions, yet these motivations are often hidden, even from the customers. Organizations must uncover these hidden motivations to serve their customers better. The "Jobs to Be Done" framework, popularized by Clayton Christensen at Harvard Business School, provides a lens through which to view customer motivations. , Founder and Managing Director of , emphasizes the importance of aligning customer experiences around the idea of jobs to be done, helping organizations grow faster by understanding what customers seek to achieve...
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Is Ghosting Killing Your Sales? Here's How To Overcome It
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
Colin has been ghosted. He was surprised, considering he is married and has been for decades. However, his ghosting experience didn’t come from a romantic partner but a professional one. Since ghosting appears to be spreading into many interactions, we thought we should discuss it here. Ghosting, where someone suddenly stops communicating, has become more common, thanks to technology making it easier to cut off contact. It often happens online, like in dating apps, leaving one wondering what went wrong. Even social invitations are not immune. Despite sending...
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Revealed! The Silver Bullet of How to Improve Your Customer Experience
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
"What's the one thing we need for a stellar Customer Experience?" If we had a dollar for every time clients asked us this, we’d, well, have quite a few dollars. The question is understandable. This unspoken desire for a silver bullet solution echoes across industries. We all want a silver bullet solution that will fix our problems, whether for weight loss, financial growth, or, in Colin’s case, for playing the guitar. The problem is that there isn’t one for CX improvement. Or guitar, frankly. Achieving mastery in guitar isn't about shortcuts—it's...
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Master the Art of Staying Cool: 5 Rules to Handle Customer Crises
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
You will have a customer crisis. We apologize for being so direct, but the fact is customer crises are inevitable. When it does happen, will you be able to navigate it to an acceptable outcome? Do you have a comprehensive approach? We doubt it. Few organizations do. Most think a customer crisis isn’t going to happen to them or that they will be able to manage it when it does with their business-as-usual approach. They are wrong. It will, and they won’t. Others think they do have a plan, even if they came up with it when the main method of...
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Overcoming Gridlock in Decision Making: Unraveling the Paradox of False Consensus
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
Have you ever come across the Abilene Paradox? It's when everyone agrees to do something that no one really wants to do. coined "The Abilene Paradox" based on a family incident. They ended up driving 50 miles each way across the scorching Texas desert to Abilene for dinner, even though none of them wanted to go. They all thought everyone else wanted to go, so they reluctantly agreed. Politeness led them to a hot, dusty adventure that none of them enjoyed. This reminded me of a recent experience. I had plans with friends, but as the weekend neared, I wasn't up for it. I...
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How to Measure the Hidden Impact on ROI of Evoking Customer Emotions
The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth
A hidden impact exists regarding your experience management return on investment (ROI). It is often overlooked because it lurks between a specific moment in a customer process and the behavior resulting from it. However, uncovering and understanding this hidden impact is critical for comprehending its implications on the bottom line. Emily Davidson wanted to know how to determine the value of her Customer Experience initiatives, a challenge many in the field face. So, she asked us—and we were glad to tell her. What Emily needs is the insight provided by our Emotional Signature...
info_outlineHave you ever noticed that spending cash is harder than using a credit card? You are not imagining things. Different payment methods carry varying degrees of discomfort when used.
Cash tends to have the most painful impact, followed by checks. Credit cards offer a lesser discomfort than cash or checks. With advancements in payment technologies like contactless cards or smartphone transactions, the potential exists for these methods to generate even less discomfort than traditional credit cards.
So, how can businesses leverage these insights into payment methods to assist customers in handling their emotional response to spending?
To put it simply, the answers lie in Mental Accounting and Reframing.
Mental Accounting plays a pivotal role in how customers navigate their emotions regarding spending. It serves to alleviate guilt and elevate happiness in spending scenarios. Thus, it's crucial to consider mental accounting within the broader context of managing customers' emotional experiences.
In this episode, we explore where your customers are emotionally relative to the purchases they make and how guiding them to an improved mental accounting from your business perspective is essential. It turns out that messages that acknowledge and address customers' emotional responses to spending can be a powerful strategy in enhancing their overall satisfaction and engagement during transactions.
Here are some other key moments in the discussion:
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04:09 Ryan explains how money can be spent on anything, however the biases we create using mental accounting help us manage our emotions regarding our spending.
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07:20 Colin associates a podcast with Joe Pine regarding how customers value their time in experiences differently depending on the type of timed transaction it is.
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17:43 We discuss the importance of understanding what mental accounting your customers are using and working with that to help them feel more satisfaction with their purchase.
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21:08 We explore how financing in the mix can change the spending experience for customers.
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28:09 We share the key takeaways from Mental Accounting and how you can leverage it to improve your experiences with customers.
About Colin Shaw
LinkedIn recognizes Colin Shaw as one of the 'World's Top 150 Business Influencers.' As a result, he has over 294,000 followers and 78,000 subscribers to his LinkedIn newsletter ‘Why Customers Buy’. The Financial Times selected Beyond Philosophy as one of the best management consultancies for four years.
Colin is a renown keynote speaker and undertakes consultancy work and educational workshops to help organizations improve their Customer Experience.
Click here to learn more about Professor Ryan Hamilton of Emory University.
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