О лояльности Потребителей

Emotions, Loyalty and Business Value

- Qaalfa Dibeehi -

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?


Why listen to me?



We never say

“no”

The customer is always rightCustomer Experience is

NOT about doing whatever it takes to “wow” customers

LinkedIn: Qaalfa DibeehiTwitter: @qaalfadibeehi

Rational and Conscious

Emotional and Subconscious

6


The Milgram Studies

xperimenter

eacher

earner


The brain expends only about 2% of its

energy on conscious activity, with the rest

devoted largely to unconscious

processing.


• “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.)


Percent saying employees know

customer expectations

38%

6%

According to Customers

According to Employees

Data source: Beyond Philosophy CETT

10



Rational engagement can lead to tenure

Emotional engagement leads to true loyalty


Loyalty is determined by the degree of sacrifice your customers are willing to

make to do business with you

The Test of Loyalty


The Walkie-Talkie Model

14

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)


The Walkie-Talkie Model: Churn

15









(1:Company)


The Walkie-Talkie Model: Loyalty

16









(1:Company)


The Walkie-Talkie Model: Tenure

17









(1:Company)


Motherhood is perhaps the strongest model of loyalty


The Harlow studies

19





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

23

£20.7m

£20.3m

£112,000

£9,135,000

£136,000

£11,165,000

£0.4m

£73.3m

£152,000

If revenues = £94 million


24

How can we model the

emotional experience

and relate it to

business creation?


How emotions relate to business value

25


Customer experience, emotions and risky business

26

Naive

Transactional

Enlightened

Natural

1

2 4

3


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


Does the customer desire the attribute or not?

Does the attribute drive value for the business or not?


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
