Download - О лояльности Потребителей
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Emotions, Loyalty and Business Value
- Qaalfa Dibeehi -
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LinkedIn: Qaalfa DibeehiTwitter: @qaalfadibeehi 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?
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Why listen to me?
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We never say
“no”
The customer is always rightCustomer Experience is
NOT about doing whatever it takes to “wow” customers
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Rational and Conscious
Emotional and Subconscious
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The Milgram Studies
xperimenter
eacher
earner
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The brain expends only about 2% of its
energy on conscious activity, with the rest
devoted largely to unconscious
processing.
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• “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.)
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Percent saying employees know
customer expectations
38%
6%
According to Customers
According to Employees
Data source: Beyond Philosophy CETT
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Rational engagement can lead to tenure
Emotional engagement leads to true loyalty
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Loyalty is determined by the degree of sacrifice your customers are willing to
make to do business with you
The Test of Loyalty
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The Walkie-Talkie Model
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Customer expectations are not met
CommentsWhen customers share gripes with
others via social media(1:World)
Customer tolerates it Customer takes action
Customer walksCustomer talks
Customer interacts with company
Customer expectations are met
ComplaintsWhen customers inform the company directly of issues
(1:Company)
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The Walkie-Talkie Model: Churn
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Customer expectations are not met
CommentsWhen customers share gripes with
others via social media(1:World)
Customer tolerates it Customer takes action
Customer walksCustomer talks
Customer interacts with company
Customer expectations are met
ComplaintsWhen customers inform the company directly of issues
(1:Company)
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LinkedIn: Qaalfa DibeehiTwitter: @qaalfadibeehi
The Walkie-Talkie Model: Loyalty
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Customer expectations are not met
CommentsWhen customers share gripes with
others via social media(1:World)
Customer tolerates it Customer takes action
Customer walksCustomer talks
Customer interacts with company
Customer expectations are met
ComplaintsWhen customers inform the company directly of issues
(1:Company)
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The Walkie-Talkie Model: Tenure
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Customer expectations are not met
CommentsWhen customers share gripes with
others via social media(1:World)
Customer tolerates it Customer takes action
Customer walksCustomer talks
Customer interacts with company
Customer expectations are met
ComplaintsWhen customers inform the company directly of issues
(1:Company)
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Motherhood is perhaps the strongest model of loyalty
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The Harlow studies
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Is there value in the cloth experience?
At risk — 55%
Defect — 45%
Poor experience22%
Positiveexperience
78%
Complain2%
Do notcomplain
98%
At risk — 34%
Defect — 28%
Resolved — 38%
Model Sources: Cherry Tree Research, Bain & Co., McKinsey, Harvard Business Review and Gartner
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£20.7m
£20.3m
£112,000
£9,135,000
£136,000
£11,165,000
£0.4m
£73.3m
£152,000
If revenues = £94 million
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How can we model the
emotional experience
and relate it to
business creation?
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How emotions relate to business value
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Customer experience, emotions and risky business
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Naive
Transactional
Enlightened
Natural
1
2 4
3
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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
The customer has an internal emotional response
I feel annoyed I feel excited I feel pleased I feel frustrated
The customer reacts
Attitude:I like this brand
Claimed behaviour:I will renew…
Actual behviour:Spent $516 in Q2
Look of the bill Accuracy of the bill
Ease of reading the bill
Amount of the bill
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Does the customer desire the attribute or not?
Does the attribute drive value for the business or not?
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Beginning of emotional engagement
• 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
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