The Intuitive Customer - Helping You Improve Your Customer Experience To Gain Growth

Are You a Risk Taker?  We all have varying levels of risk tolerance. When we shy away from risk, we call that risk-aversion. This episode of The Intuitive Customer discusses the concept of risk aversion and how it affects customers’ behavior in your Customer Experience. People like sure bets better that come with less significant gains over risky ventures, even when the risky venture proposes a substantial benefit. We hate losing things. Losing things makes us much more upset than gaining things makes us happy. So, if we are risk-averse by nature then we must always be risk-averse, right? Not so fast. Human behavior is rarely predictable, and our behavior regarding risk is no different. There are exceptions and variables that can change our risk preferences. We discussed the four influences on our tolerance for risk in this episode.   Four Influences on Our Tolerance for Risk: The presence of testosterone correlates with risk-taking. Research shows that when more testosterone is present in the body, people are more likely to engage in risky behavior. This correlation occurs in men and women alike. The way choices are presented changes our risk tolerance. We would rather hold on to what we have than commit to a sure loss. When decisions are framed in the context of gains, we choose the conservative options more often than the risky ones. However, when alternatives are framed in the context of losses, we will take more significant risks to avoid losses than when the options are framed as gains. This phenomenon is why bets get riskier at the horse track as the day wears on—and the losses pile up! The domain where the risk occurs affects our decisions. We might be willing to risk some of our hard-earned dollars at the track, but we are less likely to endanger things that are essential to our well-being, like our house or financial stability.  The life stage we are at will affect our risk aversion. Depending on where you are in your life, and the related responsibilities that accompany that life stage will change how much risk you can tolerate. The chances you take as a young single person might be different than ones you take as a parent with a mortgage. People who are late in their career might be less willing to take on new areas than those who are just getting started. People who are close to retirement might not make the same investments as a kid opening their first retirement account, and so on. To find out how you can apply these concepts in you Customer Experience, please listen to this episode. The Intuitive Customer podcasts are designed to explain the psychological concepts behind customer behavior. As customer experience consultants, we see risk aversion show up in Customer Experience all the time. Listen in to hear how you can recognize risk aversion in your customers’ behavior and address it in your Customer Experience. If you would like to find out from one of our CX consultants how you can implement the concepts we discussed in your organization’s marketing to improve customer loyalty and retention, contact us at www.beyondphilosophy.com. To subscribe to The Intuitive Customer and never miss a podcast, please click here. Follow Colin on Twitter @ColinShaw_CX.  

There is an abundance of theory in behavioral economics which can seem overwhelming. How can Marketing and Customer experience teams start using it today. In this podcast we give you an overview of the big ideas. To do this, Ryan has developed a framework of the four key principles - a summary of the four principles of human behavior. Ryan calls this the 4R’s. 1: Reference points. Reference points is the idea that people evaluate almost anything by comparing it to something else. If you want to figure out how people are going to evaluate something you need to figure out where they're starting from. 2: Reason What are the reasons that people have for choosing or not choosing to use your service? What are the reasons people use to for justify their choice? How does Behavioral economics affect this? 3: Resources All businesses want their experience to be easy. Customer crave this. But why? The reason is because people have a limited amount of cognitive resources to devote to things, a limited amount of attention, a limited amount of patience. Try to consider that when you are trying to anticipate how people are going to make decisions and how they're going to evaluate an experience. 4: Replacement This is the idea that people like to get ‘stuff’ done and that includes making decisions. If people need to make some certain evaluation with regards to your experience, your product or service. In fact, evaluating the offering on its merits or are they using some heuristic or some substitution to answer your question? If you would like to find out how you can implement these in your organization, please listen to the podcast to hear Colin & Ryan explain this further. Or please contact us at www.beyondphilosophy.com . Follow Colin on Twitter @ColinShaw_CX.

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There is a great deal of information in academia that can help your business, but how do you access it? How do you read it? How can you apply this to your customer experience? Colin will reveal how you can benchmark your performance against other companies to determine how you are doing in the new world of behavioral economics  and customer experience. Just complete a short questionnaire and we will then send you a free personalized report!

There are two key ways people make decisions: intuitvely or rationally. We discuss why this is important to designing your customer experience and how this can have a key effect on customer loyalty. We reveal how you can benchmark your organization’s performance against other companies to determine how you are doing in the new world of behavioural economics and customer experience. Just complete a short questionnaire and we will then send you a free personalized report!

Customers tend to partition money and resources into different categories and this affects their spending patterns. What are the implications of this for you? How can you use this to take your customer experience to the next level? Colin reveals how you can download his ebook 'Unlocking the Hidden Customer Experience' for free!

What are the best statistics to help you prove ROI for your customer experience program? These are the best statistics that will help you create ROI. Colin reveals how you can download his ebook 'Unlocking the Hidden Customer Experience' for free!

We all know the retail landscape is changing. But what should it be changing to? What are the opportunities and problems? Colin and Ryan interview Amit Sharma, CEO of Narvar, about how retailers can create emotional connections with shoppers in a technology-driven world. Colin will reveal how you can benchmark your organization performance against other companies to determine how you are doing in the new world of behavioral economics and customer experience. Just complete a short questionnaire and we will then send you a free personalized report!