3 Reasons Why Behavioural Economics is Critical for CX Transformation
1) Behavioural Economics helps us understand and change customer behaviour like never before
There is no doubt that Behavioural Economics provides a compelling toolkit for understanding what is really going on inside customers' brains to truly drive customer centricity within the organisation. Often counter intuitive, often seemingly common sense but not common practice - these cleverly simple customer insights often seem to drive compelling results.
Working with one of our clients, simply by 'chunking' up complex information, we helped make it easier for customers to take action and improved sales conversion by +68.5%.
2) Behavioural Economics transforms the internal customer experience for employees as well as the external experience for customers
The brilliance underpinning Behavioural Economics is that human insight is universal. We're using the very same techniques to improve the experience for employees and by doing so, creating valuable experiences for customers.
In one of our programmes, we've used 'reciprocity' to make conversations in contact centres more meaningful and fulfilling for both employees and customers alike. Customers aren't saying 'I don't know what you mean' anymore and employees are enjoying the conversations more. As a result, the attrition or churn rate of staff is down to a one quarter of previous levels and employee NPS has improved considerably.
3) Behavioural Economics benefits from academically rigorous techniques that prove the value of customer experience transformation
Customer Experience Transformation Programmes are often challenged on their ability to deliver concrete value back to the business. One of the key tenets of Behavioural Economics lies in its academic rigour and applying this to customer experience interventions is a real asset. Randomised control trials, A/B split tests, MVTs all combine to accurately and statistically prove the value of any investment and a robust business case for future investment.
Starting with a strong experimental design helps us deliver programmes that have significance levels with academic rigour and probability or p-scores that are < 0.05. In one of our programmes we've delivered transformational commercial returns of £37 : £1 with a probability of this being due to chance of 1 in 250,000.
There's no doubt in our minds that using Behavioural Economics allows you to deliver the science behind customer experience with transformational results.
