Customer Experience Management (CEM) is emerging as a major competitive advantage in the entire marketing process. It's at the downstream activities (retail touch-points) where the battle is being fought.

1. 1. Neuroscience of CEM: Ian Rheeder, Chartered Marketer, MSc. Innovation
The Psychology of Customer
Experience Management (CEM)
Ian Rheeder, Chartered Marketer (SA), MSc. Innovation
www.markitects.co.za

2. Neuroscience of CEM: Ian Rheeder
Imagine a 10-person bicycle
approaching the finish line. Three are
pedaling, five are pretending, and two
are jamming the breaks.
Employee Engagement Statistics

3. Neuroscience of CEM: Ian Rheeder
CUSTOMERS

4. Neuroscience of CEM: Ian Rheeder
Every audit was a terrible experience.
No one is delighting customers. Why?
HIDDEN
CAMERA
Winning ways to win customers
7x

5. Neuroscience of CEM: Ian Rheeder
The Initial “Hello” Face

6. Neuroscience of CEM: Ian Rheeder
Moment-of-Truth

7. Neuroscience of CEM: Ian Rheeder
Touch-point #2
Security Guard
Touch-point #1

8. Neuroscience of CEM: Ian Rheeder
Achor, S. (2013). Before Happiness. Pp.189-191 (Ritz-Carlton Hotel, Sam Walton,)
One major solution?

9. Neuroscience of CEM: Ian Rheeder
The “10/5 Way” to make people feel valued
Achor, S. (2013). Before Happiness. Pp.189-191 (Ritz-Carlton Hotel, Sam Walton,)
10
Meters
Smile
5
Meters
Say “Hello”
10/5
WAY

10. Neuroscience of CEM: Ian Rheeder
Law of similar responses
INFECT EACH
OTHER WITH
MOTOR MIMICRY
YOU CUSTOMER

11. Neuroscience of CEM: Ian Rheeder
Law of similar responses
YOU CUSTOMER

12. Neuroscience of CEM: Ian Rheeder

13. Neuroscience of CEM: Ian Rheeder
STOP Trying to
Delight Your
Customers
July - Aug 2010
Dixon, Mathew. Freeman, Karen and Toman, Nicholas, “STOP Trying to Delight Your Customers”,
Harvard Business Review, July-August, 2010, p116

14. Neuroscience of CEM: Ian Rheeder
CUSTOMERS
Stop delighting customers and get back to basics.

15. Neuroscience of CEM: Ian Rheeder
“Bad” is bigger than “Good”
Achor, S. (2013:11, 27). Before Happiness. The five hidden keys to achieving success, spreading
happiness, and sustaining positive change. Crown Business (Random House). New York.
Our emotional brain latches
hard onto negativity
It’s our ancient survival
mechanism
3:1
We need a
“positivity
ratio” of
to cancel out
a negative
fact

16. Neuroscience of CEM: Ian Rheeder
Product to customer
(Dawar, Harvard, 2013)
Downstream
activities are
emerging as the
main sources of
competitive
advantage.

17. Neuroscience of CEM: Ian Rheeder
What makes a great leader?

18. Neuroscience of CEM: Ian Rheeder
Combination of 3-things

19. Neuroscience of CEM: Ian Rheeder
TEC

20. Neuroscience of CEM: Ian Rheeder
TEC
Leadership
LEAD BY
EXAMPLE
Working with
staff
ACCOUNTABLE
TEC Leadership

21. Neuroscience of CEM: Ian Rheeder
Part 2: Understanding Consumer Behaviour
Part 3: Customer Experience Management (CEM)
The Psychology of Customer Experience
Management (CEM)
Part 1 of 3
CENTRICITY
BEGINS AT HOMEPart 1

22. Neuroscience of CEM: Ian Rheeder
Multi-Way Communication
Company
1.Internal
comms
2.External
comms
Winning ways to win customers
STAFF
Service Provider
YOUR
CUSTOMERS
3.Interactive
comms

23. Neuroscience of CEM: Ian Rheeder
Hire for Attitude/Culture
Hiring the right culture is more
important than skill.!
You can improve a person’s skills,
but beliefs, values (attitudes)
are relatively fixed.!
Why?

24. Neuroscience of CEM: Ian Rheeder
Indifference
=
Disgust
The new ‘E’ word: USA Statistics
Engaged 33%
Not
engaged
49%
Actively
Disengaged
18%
In the USA, 49% of employees are not engaged – Gallup, 2013

25. Neuroscience of CEM: Ian Rheeder
Globally: 13% are Engaged
B: Engaged 13%
C: Not
engaged 60%
D: Actively
Disengaged 27%
Beck, R. & Harter, J. (2014:39-40). Why good managers are so rare. Entrepreneur. No.98, May 2014. Copyright
Harvard Business Review News Service. And Galllup’s 27 million employee study
A: Leaders Manager
82% not talented to lead
(training required)

26. Neuroscience of CEM: Ian Rheeder
When you love your
work, then….

27. Neuroscience of CEM: Ian Rheeder
The single greatest advantage
in the modern economy is a happy and
engaged workforce.
Shawn Achor, Author of The Happiness Advantage, 2012

28. Neuroscience of CEM: Ian Rheeder
• Creativity increases by 300%.
• Blue Collared: 27% more productive
• Call centre staff 400%
higher sales (tone)
• Other sales staff 37%
higher sales
Spreitzer, G, & Porath, C. (Jan-Feb, 2012), Harvard Business Review. p.96, and p.102

29. Neuroscience of CEM: Ian Rheeder
Part 3: Customer Experience Management (CEM)
The Psychology of Customer Experience
Management (CEM)
Part 2 of 3
UNDERSTANDING
CONSUMER BEHAVIOURPart 2
Part 1: Centricity begins at home

30. Neuroscience of CEM: Ian Rheeder
The rational human does NOT exist

31. Neuroscience of CEM: Ian Rheeder
Trust is like a squeeze
tube – once it’s
squeezed out, it’s
difficult to push back in.
Ian Rheeder, Markitects

32. Neuroscience of CEM: Ian Rheeder
The Best Fiscal Stimulus: Trust, by Michael Haederle
How the potent hormone of empathy, oxytocin, is shaking up the field of economics.
Neuroeconomist Paul Zak’s studies show this to be true.
Trust

33. Neuroscience of CEM: Ian Rheeder
Basic Emotions
EMOTION
Opposite Emotion
(Negative)
Trust
(Acceptance, Admiration
= Oxytocin)
Disgust
Robert Plutchik (21 October 1927 – 29 April 2006) was professor emeritus at the Albert Einstein College
of Medicine and adjunct professor at the University of South Florida.

34. Neuroscience of CEM: Ian Rheeder
René Descartes - 1596 – 1650, Father of Modern Philosophy
“I think, therefore I am.
“I feel, therefore I am.

35. Neuroscience of CEM: Ian Rheeder
We are driven by EMOTIONS

36. Neuroscience of CEM: Ian Rheeder
EMOTIONS Drive PEOPLE – PEOPLE Drive PERFORMANCE

37. Neuroscience of CEM: Ian Rheeder
Colour
80%
of visual
information is
related to
colour.
Color Design Workbook, Stone. T.L, Rockport, 2006

38. Neuroscience of CEM: Ian Rheeder
Red is Edible!

39. Neuroscience of CEM: Ian Rheeder
Sight
Pharmacological
look/feel,
therefore it
must “work”.

40. Neuroscience of CEM: Ian Rheeder
Smell = Quality

41. Neuroscience of CEM: Ian Rheeder
Sound = Quality

42. Neuroscience of CEM: Ian Rheeder
Part 2: Understanding Consumer Behaviour
The Psychology of Customer Experience Management (CEM)
Part 3 of 3
CUSTOMER
EXPERIENCE
MANAGEMENT (CEM)
Part 3
Part 1: Centricity begins at home

43. Neuroscience of CEM: Ian Rheeder
TOILETS
Farewell (last impression)
MOTs at Service Station
Forecourt
clean & safe
Customer
sees
advert
MOT #1
Remember:
“Bad” is
300%
bigger than
“good”.Meet &
Greet (tone)
Requirements
are discussed
Express Retail
Store
Service
attendant’s body
language
MOT #4
MOT #2
MOT #6
Speed of
service
MOT #5
MOT #3
Payment & Avios

44. Neuroscience of CEM: Ian Rheeder
When YOU love your work, then
CUSTOMERS love your work!

45. Neuroscience of CEM: Ian Rheeder
Thank you!
ian@markitects.co.za www.markitects.co.za