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

Claire Dunwood has a pickle. She wants to know how to manage rising customer expectations with fewer resources than she used to have. This episode seeks to help her—and you—do exactly that. It's pretty common to hear problems like this today. Responding to rising expectations is easy when there is no limit to the resources you can throw at it. Doing that same thing on a budget is a different kettle of fish. We kick off by exploring how expectations form. Expectations for experiences, even for those we've never had, are often built from adjacent or similar experiences, drawing on memories, media, or past interactions. Therefore, customers have preconceived notions about how their interactions with your brand will unfold, even before they've engaged with you. Claire noted that customer expectations seem to be constantly rising. Effective management of rising expectations requires identifying which aspect of the expectations is rising—rational, emotional, or sensory—and whether it aligns with your business goals. We discuss the importance of focusing on the aspects that drive the most value for customers rather than trying to meet every rising expectation. A key takeaway is the importance of focusing on what matters most to your customers, as highlighted by the Blue Ocean Strategy. This approach suggests excelling in the most important areas to your customers and letting go of everything else. Knowing your customers well is essential, as it helps you decide which expectations to meet and which to disregard, ensuring that you spend your resources wisely. In this episode, we share practical strategies for managing customer expectations, including understanding customer needs, proactive communication, setting clear boundaries, maintaining consistency, and leveraging technology. These strategies help balance the demands of rising expectations with the reality of limited resources. In this episode, we also talk about: The formation of customer expectations from adjacent experiences The categorization of expectations into rational, emotional, and sensory The concept of outcome-based prioritization when resources are limited The role of transparency and proactive communication in managing expectations How to decide whether certain customers are worth the effort based on their expectations and profitability Examples of businesses effectively setting and exceeding customer expectations The importance of staying agile and responsive to customer feedback

Graham Hill, Ph.D., an expert in CRM and customer experience, dives into the transformative power of personalization fueled by AI. He reveals how personalization ranges from mass communications to highly individualized content, significantly boosting customer engagement. Hill highlights that personalized messages can be up to nine times more effective and warns against the pitfalls of over-personalization. He emphasizes the importance of clear objectives and a job-centered approach to enhance customer satisfaction while integrating data meaningfully.

Excuses can be as entertaining as they are frustrating, especially in customer service. From tradespeople crafting outrageous justifications during renovations to companies shifting blame for faulty products, the exploration of excuse-making reveals deeper psychological motivations. The podcast discusses the stark difference between excuses and genuine reasons, alongside the pitfalls of confirmation bias and fundamental attribution error. Through humorous anecdotes and real-world examples, it emphasizes accountability and transparency as crucial for building trust.

In this discussion, Daniel Bisett, partner and CXO at WeRock DM and a marketing professor at UT McCombs, dives into the ethics of urgency in marketing. He shares insights from 'The Social Dilemma', examining how scarcity tactics can lead to anxiety and hasty decisions among consumers. Bisett argues for the importance of building trust through genuine value rather than manipulation. The conversation also touches on the ethical implications of behavioral science in marketing, challenging the industry's tactics and emphasizing the need for transparency and human dignity.

In this episode, we dive deep into the concept of empathy and its significance in Customer Experience Management. We challenge common perceptions of empathy, explore its connection to emotional intelligence, and examine how both concepts can enhance your experience management efforts. We begin with a discussion on the importance of Emotional Intelligence (EQ), referencing some compelling statistics: Emotional intelligence influences 58% of job performance. 90% of top performers at work have a high EQ score. The demand for EQ skills is projected to grow six-fold in the next three to five years. Employees with empathetic leaders report a 76% increase in engagement and a 61% boost in creativity. Restaurants managed by individuals with high EQ see a 22% annual profit growth. EQ interventions in the workplace can reduce employee turnover by 63%. 75% of Fortune 500 companies have utilized EQ training tools. Our guest, Sandra Thompson, an emotional intelligence coach from Ei Evolution, shares her insights on empathy within the context of EQ. She emphasizes the necessity of using empathy skills, which involve asking questions and truly listening to understand another person's feelings and interpretations, rather than projecting our own emotions onto their experiences. We also explore the idea that traditional empathy might be too contextual, as emotions are personal and can lead to misunderstandings if the emotional context differs. Thompson's concept of "walking in the customer's shoes" is dissected, with the notion that while some shared experiences can foster empathy, unique contexts might still cause disconnects. We break down empathy in emotional intelligence into three approaches: bad (not caring), good (walking the experience as if you were a customer), and better (experiencing as a customer and asking questions to understand their feelings). This layered approach is essential for effective experience management and creating genuine connections with customers. In this episode we also explore: The impact of empathy on job performance and employee engagement. How empathy and emotional intelligence can reduce employee turnover and increase profitability. The role of emotional intelligence in leadership and its effect on creativity. Strategies for developing and implementing emotional intelligence skills in the workplace. Real-life examples of how empathy and EQ improve customer experiences. The importance of self-awareness in emotional intelligence and managing personal emotions. Practical tips for enhancing empathy skills through active listening and inquiry. Sandra Thompson Contact Details. Website: www.eievolution.com LinkedIn: https://www.linkedin.com/in/cxeisandra/

In this episode, we challenge the conventional wisdom of customer-centricity and discuss why firing a customer is sometimes necessary. While it may seem counterintuitive, knowing when to let go of a customer can benefit your business in the long run. We outline five critical rules to help you determine when it's time to part ways with a customer: Rule #1: Fire customers if they cost too much. Some customers drain more resources than they generate in revenue. It's crucial to track these costs accurately and address the imbalance. If you can't rectify the situation, it's time to let them go. Rule #2: Fire customers if they don't align with your brand. Your brand's values should resonate with your customer base. If a customer's values conflict with yours, maintaining the relationship can harm your brand's integrity and alienate your core audience. Rule #3: Fire customers if they don't fit with your future. As your business grows, some customers might no longer fit your strategic goals. Prioritize resources for future growth by letting go of customers who don't align with your long-term plans. Rule #4: Fire customers if they are too risky. If a customer's business model or payment practices pose a significant risk, it's safer to part ways. Overcommitting to one client or taking the undue risk can jeopardize your business stability. Rule #5: Fire customers if they abuse your employees. Support and protect your employees from abusive customers. Ensuring a respectful work environment is critical for employee morale and long-term success. Understanding these rules will help you make informed decisions about maintaining customer relationships that align with your business goals and values. Sometimes, the best way to move forward is to let go. In this episode, we also explore: The importance of knowing your customer cost metrics and tracking them accurately. How to handle awkward conversations with customers about cost imbalances. Examples of brand alignment, including the Colin Kaepernick and Nike story. Strategies for soft-firing customers without abrupt severance. Recognizing when your growth trajectory requires pruning your customer base. Identifying and mitigating business risks associated with certain customers. The impact of customer behavior on employee well-being and company policy. Insights on post-pandemic changes in customer behavior and their effect on businesses. The balance between customer-centricity and business sustainability.

In this episode, we explore the role of AI in customer experiences and whether it will replace human interaction. Ali Cudby, CEO of Alignment Growth Strategies, shares insights on leveraging AI to build customer relationships effectively. We discuss practical AI tools that enhance customer experiences and streamline efficiency. There are a couple of helpful AI tools Cudby mentions. For example, Synthesia generates AI voiceovers for video scripts, making updates easy and translating content for global audiences. Also, Absorb uses AI to create prompts-based presentations, reducing time and effort. Cudby describes how these tools allow for more accurate customer communication while freeing up time for personalized interactions where it matters most. Cudby (alicudby, Alignment Growth Strategies), the author of Keep Your Customers, emphasizes that while AI is a valuable tool, it cannot replace genuine, personalized experiences delivered by empathetic humans. Customers must feel seen, heard, and valued to build trust and loyalty. The episode also highlights the importance of context in customer experiences and how AI can assist without overshadowing human value. We also touch on the potential risks of AI, such as the creation of fake videos, and the importance of verifying authenticity, especially during critical times like elections. Schema matching helps us identify inconsistencies in AI-generated content, ensuring we make better judgments. The discussion includes the concept of Blue Ocean Strategy, which advises focusing efforts on what drives the most value for customers. By maximizing resources in areas that matter most, businesses can avoid spreading themselves too thin and achieve greatness. In this episode, we also discuss: The significance of AI tools in customer education and training. The balance between AI efficiency and human empathy in customer interactions. The impact of AI on content accuracy and time management. Real-life examples of AI and human synergy in customer service. The role of schema matching in identifying AI-generated fakes. Strategies for optimizing customer experiences using the Blue Ocean concept. The importance of context in understanding customer emotions and needs. How to determine the value AI brings to your customer experience efforts. The potential pitfalls of over-relying on AI in areas where human touch is crucial.

Friction occurs when a customer has to work or think hard during an experience. Many times, friction is accidental or the result of organizational apathy. In these instances, friction is a bad thing. Friction is rarely a good thing in a Customer Experience. However, there are times when it can be beneficial. For example, when your bank uses two-factor authentication to ensure you are who you say you are. This friction enhances customers' feelings about an experience. So, how do you know the difference? It depends on the context. For example, Disney and Apple have annoyed Colin. Typically, he sings these two brand's praises, so this friction surprised him. Both require Colin to make appointments for his experience, which bugs him. Disney has a new program where you book appointments before you arrive to ride an attraction at a certain time. They charge for it, too. Apple requires you to book an appointment in one of their locations rather than turn up with your questions. (But Apple doesn't charge for this service.) While Colin is still determining if the Disney program will improve the experience, he is sure this new process will be more hassle than the previous one. Time will tell whether it will be worth it. Regarding Apple, the friction of booking an appointment has benefited Colin. He isn't turned away because everyone is "too busy" to deal with him when he arrives at his appointed time. So, while Colin would rather Apple was always available when he shows up at a retail location, making the appointment—and the friction it introduced—has provided value for him. In this episode, we delve into friction in Customer Experiences, exploring when it's beneficial and detrimental. We provide examples illustrating how friction can enhance or hinder customer interactions, shedding light on its nuanced role in shaping perceptions and behaviors. By understanding the multifaceted nature of friction, businesses can unlock new opportunities for customer engagement and loyalty. You will also learn the following: The advantages of removing friction and making things easier for customers. The prevalence of accidental friction stems from neglect or apathy rather than deliberate strategy. Examples of deliberate friction in various industries, from amusement parks to luxury restaurants, and the underlying psychological mechanisms at play. The importance of finding the right balance between security measures and customer convenience, avoiding excessive friction that may deter or frustrate customers. Strategies for strategically managing friction to align with broader business goals while prioritizing customer satisfaction and ease of interaction.

Colin has a bone to pick. No, it's not with cable providers this time. It's with the tradespeople involved in his latest home reno project. They are living up to the poor reputation that precedes them, and he has a list of complaints. Key problems included inaccurate pricing, disdain for previous workers' efforts, lack of collaboration, excessive use of jargon, and poor time management. The disconnect between different trades, reminiscent of organizational siloes in corporate environments, often exacerbates problems. These issues often leave customers frustrated and distrustful. Drawing from personal experience with Colin's kitchen renovation, we highlight common problems that contribute to the negative perception of tradespeople and discuss ways to enhance their Customer Experience. It is important to note that many tradespeople excel in their work and customer service, proving that good practices do exist. It's just that none of those lot are currently working on Colin's project. A significant issue is information asymmetry—customers often lack the knowledge to assess the necessity of additional work, creating a sense of vulnerability and distrust. Other industries, like customized software solutions, face similar challenges where the contractors' expertise far exceeds that of the clients. Some tradespeople and firms have addressed these issues effectively. For example, an electrician's memorable and self-aware tagline, "No Malarkey with Mr. Sparky," engaged Colin enough to hire them to fix his electrical mishap. He liked the acknowledgment that sometimes contractors do provide more than their share of malarkey. This example underscores the importance of clear communication and reliability in building customer trust. In this episode, we not only humor Colin's need to rant, but we also explore why tradespeople have the reputation they do and what they should do about it. We also look at what you can learn from their mistakes to benefit your organization. In this episode, you will also learn how to avoid these mistakes with tips like: Use Effective Communication Strategies: How tradespeople can improve customer interactions by avoiding jargon and clearly explaining their work Set Realistic Expectations: The importance of accurate initial quotes and timelines to build trust and prevent customer frustration Employ Collaboration: Strategies for enhancing coordination between different trades (or organizational siloes) to ensure smoother project completion Develop Customer Education Tactics: Methods for educating customers about the work undertaken to reduce information asymmetry and build confidence Implement Customer Experience Systems: The value of structured approaches to ensure consistent and positive customer experiences across the trades Learn from Other Industries: Insights from how software firms handle project management and customer relations to avoid cost and time overages

Did you ever have an imaginary friend? If so, you already have a leg up on this week's episode. Chances are you created a mental model of your imaginary friend and could predict with 100 percent accuracy how they might react to a given situation. A mental model is a detailed creation of an imaginary customer that helps you determine how a real-life customer might react to a given situation. However, unlike the imaginary friend, science and data develop the imaginary customer, not creativity. As we conclude the Masterclass Series about the intricate world of Customer Experiences and the myriad factors that shape customer behavior from a behavioral science perspective, today's episode pulls everything together. We discuss why you should create mental models of imaginary customers to understand why your real-life customers do what they do. Traditionally, advertising professionals crafted detailed fictional personas, like an imaginary friend from childhood. Then, they targeted their messages to these fictional customers to hone their brand messages. Today, marketers continue this practice by segmenting customers into groups with specific characteristics, creating a persona that represents the group, and tailoring messages for each persona. AI presents an intriguing opportunity to enhance this approach, enabling AI to predict customer responses by accurately simulating real-world behavior. This practical application holds immense promise. However, relying solely on intuition is inadequate for constructing precise mental models. A wealth of data is necessary to uncover the underlying motivations and psychological triggers of customer behavior. Understanding the context in which customers make decisions is another critical element of creating effective mental models. Factors such as current emotions, memories of past experiences, and the situational context can significantly influence decision-making. Also, we discuss how Daniel Kahneman's two-system model from "Thinking, Fast and Slow" explains the interplay between rational and intuitive decision-making processes. This final installment of our Masterclass Series underscores the significance of customer personas or mental models in comprehending and anticipating customer reactions to diverse marketing strategies. Our discussion emphasizes the criticality of incorporating comprehensive data into these models to ensure accurate predictions of customer reactions, particularly in the context of incentives. The discussion also highlights the challenges of integrating such data into AI models. In this episode, you will also learn: The historical development of customer personas in advertising The potential future role of AI in creating and predicting customer personas The limitations of relying solely on intuition for customer behavior predictions The significance of memories and emotional drivers in customer decision-making Why nutrition labels did little to encourage obese people to make better food choices The impact of situational context on customer choices