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Emotions, Loyalty
and Business Value
- Qaalfa Dibeehi -
The key questions
for today?
• Why is loyalty partially irrational?
• Why is tenure not enough?
• How do emotions drive or destroy
value for business?
• How can the emotional experience be
modelled?

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

2
Why listen to me?

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

3
Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

4
The custo
ay Experiencemer is
Customer a
is
ver s
e
lways right
We n
NOT
“no” about doing whatever it
takes to “wow” customers

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

5
Rational and Conscious

Emotional and Subconscious

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

6
The Milgram Studies
xperimenter

eacher

earner

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

7
The brain expends
only about 2% of its
energy on conscious
activity, with the rest
devoted largely to
unconscious
processing.

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

8
• “The essential difference between emotion
and reason is that emotion leads to
action while reason leads to
conclusions.” (Calne, D., Within Reason: Rationality and
Human Behavior.)

• “Although beliefs may guide our actions,
they are not sufficient to initiate action…
Emotions are prime candidates for
turning a thinking being into an
actor.” (N.H. Frijda, A.S.R Manstead, and S. Bem , Emotions
and Beliefs: How Feelings Influence Thoughts )

• “We now accept that human beings are
powered by emotion, not by reason.
Emotion and reason are intertwined,
but when they are in conflict, emotion
wins every time. (Roberts, K., Emotion] controls our
rationality, our decision making.” , Annual ESOMAR Conference,
Barcelona.)

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

9
38%

Percent saying
employees know
customer
expectations

6%
According to
Employees

According to
Customers

Data source: Beyond Philosophy CETT

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

10
Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

11
Rational engagement can lead to tenure

Emotional engagement leads to true loyalty

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

12
The Test of Loyalty

Loyalty is determined by the degree of
sacrifice your customers are willing to
make to do business with you
Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

13
The Walkie-Talkie Model
Customer interacts with company

Customer expectations are met

Customer expectations are not met

Customer tolerates it

Customer takes action

Customer talks

Complaints
When customers inform the
company directly of issues
(1:Company)

Twitter: @qaalfadibeehi

Customer walks

Comments
When customers share gripes with
others via social media
(1:World)

LinkedIn: Qaalfa Dibeehi

14
The Walkie-Talkie Model: Churn
Customer interacts with company

Customer expectations are met

Customer expectations are not met

Customer tolerates it

Customer takes action

Customer talks

Complaints
When customers inform the
company directly of issues
(1:Company)

Twitter: @qaalfadibeehi

Customer walks

Comments
When customers share gripes with
others via social media
(1:World)

LinkedIn: Qaalfa Dibeehi

15
The Walkie-Talkie Model: Loyalty
Customer interacts with company

Customer expectations are met

Customer expectations are not met

Customer tolerates it

Customer takes action

Customer talks

Complaints
When customers inform the
company directly of issues
(1:Company)

Twitter: @qaalfadibeehi

Customer walks

Comments
When customers share gripes with
others via social media
(1:World)

LinkedIn: Qaalfa Dibeehi

16
The Walkie-Talkie Model: Tenure
Customer interacts with company

Customer expectations are met

Customer expectations are not met

Customer tolerates it

Customer takes action

Customer talks

Complaints
When customers inform the
company directly of issues
(1:Company)

Twitter: @qaalfadibeehi

Customer walks

Comments
When customers share gripes with
others via social media
(1:World)

LinkedIn: Qaalfa Dibeehi

17
Motherhood is perhaps the
strongest model of loyalty

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

18
The Harlow studies

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

19
Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

20
Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi
Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi
Is there value in the cloth experience?
If revenues = £94 million

At risk — 34%

Poor experience £20.7m
22%

Positive
experience
78%

Defect — 28%

£112,000

Resolved — 38%

Complain
2%

£136,000

£152,000

£0.4m

Do not
complain £20.3m
98%

At risk — 55%
Defect — 45%

£11,165,000
£9,135,000

£73.3m

Model Sources: Cherry Tree Research, Bain & Co., McKinsey, Harvard Business Review and Gartner

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

23
How can we model the
emotional experience
and relate it to
business creation?

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

24
How emotions relate to business value

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

25
Customer experience, emotions and risky business
1 Naive

3 Enlightened

2 Transactional

4 Natural

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

26
The business does something to, for or with the
customer (touchpoints, attributes)
Tone of voice of
the agent

Speed of the
agent

Degree agent
listened to me

Authority of the
agent

Look of the bill

Accuracy of the
bill

Ease of reading
the bill

Amount of the
bill

The customer has an internal emotional response
I feel annoyed

I feel excited

I feel pleased

I feel frustrated

The customer reacts
Attitude:

Claimed behaviour:

Actual behviour:

I like this brand

I will renew…

Spent $516 in Q2

Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

27
Does the attribute
drive value for the
business or not?

Does the customer desire the attribute or not?
Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

28
• Net Promoter Score
increased by 25% points
(from -10% to 15%)
• As a result in 2010 reversed
a $2 billion loss to $2.6
billion profit

Twitter: @qaalfadibeehi

Beginning of emotional engagement

LinkedIn: Qaalfa Dibeehi

29
Twitter: @qaalfadibeehi

LinkedIn: Qaalfa Dibeehi

30

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О лояльности Потребителей

  • 1. Emotions, Loyalty and Business Value - Qaalfa Dibeehi -
  • 2. The key questions for today? • Why is loyalty partially irrational? • Why is tenure not enough? • How do emotions drive or destroy value for business? • How can the emotional experience be modelled? Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 2
  • 3. Why listen to me? Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 3
  • 5. The custo ay Experiencemer is Customer a is ver s e lways right We n NOT “no” about doing whatever it takes to “wow” customers Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 5
  • 6. Rational and Conscious Emotional and Subconscious Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 6
  • 7. The Milgram Studies xperimenter eacher earner Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 7
  • 8. The brain expends only about 2% of its energy on conscious activity, with the rest devoted largely to unconscious processing. Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 8
  • 9. • “The essential difference between emotion and reason is that emotion leads to action while reason leads to conclusions.” (Calne, D., Within Reason: Rationality and Human Behavior.) • “Although beliefs may guide our actions, they are not sufficient to initiate action… Emotions are prime candidates for turning a thinking being into an actor.” (N.H. Frijda, A.S.R Manstead, and S. Bem , Emotions and Beliefs: How Feelings Influence Thoughts ) • “We now accept that human beings are powered by emotion, not by reason. Emotion and reason are intertwined, but when they are in conflict, emotion wins every time. (Roberts, K., Emotion] controls our rationality, our decision making.” , Annual ESOMAR Conference, Barcelona.) Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 9
  • 10. 38% Percent saying employees know customer expectations 6% According to Employees According to Customers Data source: Beyond Philosophy CETT Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 10
  • 12. Rational engagement can lead to tenure Emotional engagement leads to true loyalty Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 12
  • 13. The Test of Loyalty Loyalty is determined by the degree of sacrifice your customers are willing to make to do business with you Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 13
  • 14. The Walkie-Talkie Model Customer interacts with company Customer expectations are met Customer expectations are not met Customer tolerates it Customer takes action Customer talks Complaints When customers inform the company directly of issues (1:Company) Twitter: @qaalfadibeehi Customer walks Comments When customers share gripes with others via social media (1:World) LinkedIn: Qaalfa Dibeehi 14
  • 15. The Walkie-Talkie Model: Churn Customer interacts with company Customer expectations are met Customer expectations are not met Customer tolerates it Customer takes action Customer talks Complaints When customers inform the company directly of issues (1:Company) Twitter: @qaalfadibeehi Customer walks Comments When customers share gripes with others via social media (1:World) LinkedIn: Qaalfa Dibeehi 15
  • 16. The Walkie-Talkie Model: Loyalty Customer interacts with company Customer expectations are met Customer expectations are not met Customer tolerates it Customer takes action Customer talks Complaints When customers inform the company directly of issues (1:Company) Twitter: @qaalfadibeehi Customer walks Comments When customers share gripes with others via social media (1:World) LinkedIn: Qaalfa Dibeehi 16
  • 17. The Walkie-Talkie Model: Tenure Customer interacts with company Customer expectations are met Customer expectations are not met Customer tolerates it Customer takes action Customer talks Complaints When customers inform the company directly of issues (1:Company) Twitter: @qaalfadibeehi Customer walks Comments When customers share gripes with others via social media (1:World) LinkedIn: Qaalfa Dibeehi 17
  • 18. Motherhood is perhaps the strongest model of loyalty Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 18
  • 19. The Harlow studies Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 19
  • 23. Is there value in the cloth experience? If revenues = £94 million At risk — 34% Poor experience £20.7m 22% Positive experience 78% Defect — 28% £112,000 Resolved — 38% Complain 2% £136,000 £152,000 £0.4m Do not complain £20.3m 98% At risk — 55% Defect — 45% £11,165,000 £9,135,000 £73.3m Model Sources: Cherry Tree Research, Bain & Co., McKinsey, Harvard Business Review and Gartner Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 23
  • 24. How can we model the emotional experience and relate it to business creation? Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 24
  • 25. How emotions relate to business value Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 25
  • 26. Customer experience, emotions and risky business 1 Naive 3 Enlightened 2 Transactional 4 Natural Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 26
  • 27. The business does something to, for or with the customer (touchpoints, attributes) Tone of voice of the agent Speed of the agent Degree agent listened to me Authority of the agent Look of the bill Accuracy of the bill Ease of reading the bill Amount of the bill The customer has an internal emotional response I feel annoyed I feel excited I feel pleased I feel frustrated The customer reacts Attitude: Claimed behaviour: Actual behviour: I like this brand I will renew… Spent $516 in Q2 Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 27
  • 28. Does the attribute drive value for the business or not? Does the customer desire the attribute or not? Twitter: @qaalfadibeehi LinkedIn: Qaalfa Dibeehi 28
  • 29. • Net Promoter Score increased by 25% points (from -10% to 15%) • As a result in 2010 reversed a $2 billion loss to $2.6 billion profit Twitter: @qaalfadibeehi Beginning of emotional engagement LinkedIn: Qaalfa Dibeehi 29