Psychological Concepts that are Useful in Creating Better CX Strategies

CloudCherry | Featured | April 22, 2019

Most businesses know that it’s not enough to merely market a product to the customer. Along with the product, brands have invested in creating a customer experience (CX) that will keep customers coming back to them. In our article ‘Delivering Customer Experience That Deliver Value’, we discussed how understanding a customer’s psyche is key in providing customer service that has actual value for your business. This means using psychology to aid your business in gaining a competitive advantage when it comes to retaining consumers’ loyalty and trust.

As explained by Rahul Varshneya, co-founder of marketing company Arkena.com, when thinking about the colors red and yellow for example, it is likely that a fast food chain will come to mind. This is no accident as the color red is often used to stimulate appetite while the color yellow brings out feelings of joy and happiness. By effectively associating themselves with these colors, fast food chains know that a customer’s subconscious automatically thinks of them when they feel hungry or even happy.

There are a number of other ways to use psychology for boosting the customer experience that goes beyond color. Certain brands understand that sometimes shopping in itself is the experience that customers go for and not necessarily the products. Businesses can make shopping more fun and interactive by making a game of it like timed bidding, for example. The act of shopping for its own sake can spark emotional highs of pleasure and fulfillment to keep customers coming back.

Another way is by using the peak-end rule. This rule states that more than the sum total, customers judge an experience by its most intense point and its end point. This explains why Apple retail stores always make sure store representatives make eye contact and thank customers after every purchase. The simple gesture sticks out and goes a long way in shaping customer loyalty to the brand.

The idea that the experiences surrounding a product can influence purchase decisions is called “atmospherics”. Smarter CX’s article ‘Consumers in Context: It’s Not What You Buy, It’s Where You Buy It’, explains that businesses are urged to invest in aspects such as the right lighting, interior design and music, in order to get customers to spend more than what they would normally. This was proven in a 1993 study by two psychologists from Texas Tech University. Customers in a wine store were found to have been willing to pay as much as 3 times more for a bottle of wine if classical music was playing. Something as simple as music, that most people never even think twice about, can increase sales dramatically.

Companies have known the importance of psychology in business for over a century, and are constantly taking steps to better understand what drives consumer habits and decisions. They also employ successful marketers who have a good background in psychology and are, therefore, highly sought after to help businesses appeal to their customers more effectively. This is why in Maryville University’s breakdown of how psychology students can use their degree for business, they note that in areas such as market research and human resources it is predicted to see growth of 19% and 9% respectively. This only leads many to believe that there will be an increasing focus on the customer psyche. Businesses know that by improving their CX strategies through various psychological concepts, they may just have the edge they need to succeed.

Article exclusively written for cloudcherry.com

By Reese Jones