Putting behavioral psychology to work to improve the customer experience By Dilip Bhattacharjee, Keith Gilson, and Hyo Yeon ARTICLE PUBLISHED ON MARCH 2018

1. Presented to : Sir Usman Ehsan
Presented by
1. Abdul Moeed Butt
2. Ayesha Saddiqa
3. Moaaz Zulfiqar
4. Majid Alvi
5. Shahzaib Saleem
6. Asad
Customer
Relationship
Management

2. Putting behavioral psychology to work
to improve
the customer experience
By Dilip Bhattacharjee, Keith Gilson, and Hyo Yeon
ARTICLE PUBLISHED ON MARCH 2018

3. Introduction
 As a leader at company, Enhancing customers experience and customer satisfaction is
main priority.
 Companies invest in products , People and Service delivery process to put customers
first.
 But, When companies do analysis of surveys result and other metrics of Customer
experiences mostly face disappointment.
 They were even not able to achieve the minimum targets.

4. Cont.…
Improvement in customer experience benefits the leader in two ways
Acknowledgment
Economical
benefit for
company
Competition prevails among companies in operational performance but one can secure
higher brand recognition in customer-centric organization.

5. Cont….
 By applying the principals of Behavior psychology Customers interaction can be
improve.
 Customers recognize and give credit for all their painful and pleasurable experiences
to company
 So by masterfully apply principles company can maximize customer experience.
What can be advantages by applying Behaviour Psychology
Principle?

6. Behaving well, & badly
Mckinsey’s developed
Framework for categorizing
common action of particular
behavior's from individuals.
CHOICES
Context
Habit
Other
People
IncentivesCongruence
Emotions
Salience

7. Cont….
One pilot study at a
consumer-services firm found
that improvements in customer-
service scores accrued from
behavioral-psychology initiatives
rather than from improvements
in operations.
Source: McKinsey Analysis

8. Cont… (Major Factors of Customer journey experience)
leading researchers Richard Chase and Sriram Dasu identified three major factors that
occur during customer-journey experiences and drive customer perceptions and levels of
satisfaction.
These principles can often be applied at little additional cost and help to ensure that
companies receive credit for the experience they deliver
Sequence Segments Control

9. 1. Sequence
 Days, weeks, and months after using a product or services
 Customer only recall the high and low points of their customer journey, not all the
individual aspects
 Sequences of high & low points change the perception of services received
 Unpleased ending have a strong negative impact
FOR EXAMPLE: Hotel Chains

10. 2. Segments
 Interaction of high & low points affects how services are perceived
 Customer encounter all negative experiences during one touchpoint
 Company split pleasant experiences into multiple touchpoints
 This can improve perception of services
FOR EXAMPLE: Disney Park

11. 3. Control
 Customers want to feel like they are in control of their journey
 The more empowered, engaged, and updated
 The less likely they are to blame company when things go wrong
FOR EXAMPLE: Home Repair Company

12. Rewiring customer touchpoints and
journey
 Many Co. take advantages by these principles to improve the customer perceptions
 Airlines and movie theaters providing customers with a sense of control
 Companies lose the opportunity to take the advantages of Behavioral psychology
principle
 Most airlines spends resources on interiors, check-in, & in-flight services
 Some only invest in last step in the passenger journey to avoid bad ending note

13. How can companies take advantage of these principles more systematically?
Walt Disney
World
Amazon
Get bad experience over with early
Segment pleasure, Combine pain
Cathay Pacific Finished strong
Norwegian
Cruise Lines
Pizza Hut
Ritz-Carlton
Hotels
Give customer choice
Create the sense of control by showing
where the order is
Create a sense of control by sticking to
habits`
Business Principle

14. Touchpoints
Segments pleasure & combine
pain for your customers so that
the pleasant part of the journey
form a stronger part of customer
recollection
Work through bad
experiences early so that
customers recollect the more
positive
As the customer final interaction
will have a disproportionate
impact on his or her memory of
the service
Provide customer choice,
giving them a sense of control
Stick to habit and prevent any
surprise, again giving
customer more peace of mind
By analysis of touchpoints and making approaches based on three principle customers
experiences and journey can be enhance.
There are some common goals:

15. Journey
 Its not sufficient to scatter the winning points by only channels, devices & applications
 To manage customer perceptions company need to redesign touchpoints
 Which could last from several days to several weeks
Redesigning the whole customer
journey according to Behavioral
Psychology principle have potential
for prolong improvements in
customer satisfaction

16. Obstacles to how they Can be
overcome
Obstacles
 Application of behavioral psychology
for improving customer experience
prove to be little more than
disjointed trials.
 Regularly difficult for organizations to
move to more deliberate
interventions at scale
Remedies
 Try to jointly serve touch-points to
customers so that they can feel and
notice the every aspect.
 Behavioral psychology initiatives can
help ensure customer-service
investment have sustain impact.

17. Obstacles
 Inability to quantify the impact of
customer-service initiatives.
 Existing system not strong enough
to intergrade behavioral programs.
 Company culture that resist rapid
and systematic prototyping.
Remedies
 Linking the customer experience to
value
 Leading and governing the customer-
centric organization
 Using rapid process digitization to
transform the customer experience

18. By applying behavioral principals company can get incremental value with minimal
Investment.