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HOW WELL DO YOU KNOW
    YOUR CUSTOMERS?
It’s a tough question. One way your business can find
answers is to examine research in social psychology.

     Here are 10 such studies that reveal things
    your customers WISH you knew about them.
1   CUSTOMERS VALUE “GOOD”
    SERVICE MORE THAN
    “FAST” SERVICE
    Recent studies show that customers who receive
    competent, knowledgable, and all encompassing                                                15 minutes in
    services are more likely to remember their                                                   paradise is
    experience and tell their friends.
                                                                                                 better than 5
    Additionally, customers cited “rude, incompetent
    and rushed” service as their #1 reason to abandon
                                                                                                 minutes in hell
    a brand, 18% more often than “slow” service.




    http://businessjournal.gallup.com/content/727/when-speed-kills.aspx#1
    http://www.rightnow.com/files/analyst-reports/RightNow-Customer-Experience-Impact-Report-2011.pdf
2   CUSTOMERS LOVE
    PERSONALIZATION, THEY WILL
    GLADLY PAY FOR IT
                      In a study from the Journal of Applied Social
                      Psychology, researchers were able to increase the
                      average tips that waiters received by over 23%
                      (without changing service quality).

                      They accomplished this by having waiters follow up
                      with a second set of mints after they brought
                      customers their check (waiters that brought mints
                      but didn't follow up received an average of 7% less
                      for their tips).


           http://businessjournal.gallup.com/content/727/when-speed-kills.aspx#1
           http://www.rightnow.com/files/analyst-reports/RightNow-Customer-Experience-Impact-Report-2011.pdf
3   CUSTOMERS WILL
    REMEMBER YOU IF YOU CAN
    REMEMBER THEIR NAME
    Speaking of personalization, according to
    recent research examining brain activation,            Nothing makes
    few sounds are as pleasant as hearing our
    own names.                                             me feel loved
                                                           quite like a
    Fact is, people are more attentive (and
    interested) when they hear their names; be             post-purchase
    sure your small business takes advantage of            email from
    getting to know your customers by using their
    names when appropriate.                                “DO-NOT-REPLY”


    http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1647299/
4   THERE ARE FEW THINGS
    CUSTOMERS TALK ABOUT MORE
    THAN A PLEASANT SURPRISE
                One of the most lasting (and talked about)
                customer experiences is a pleasant surprise:
                reciprocity (especially when it's unexpected) is a
                very powerful force.

                Zappos recognizes this: without so much as a
                single mention on their sales page, Zappos
                regularly upgrades customers to overnight
                shipping free of charge, just to brighten their day.




            http://econweb.umd.edu/~ozbay/reciprocity.pdf
            http://hbr.org/2010/07/how-i-did-it-zapposs-ceo-on-going-to-extremes-for-customers/ar/1
5   CREATING GOODWILL WITH
    CUSTOMERS DOESN’T NEED
    TO BE EXPENSIVE
    The concept of “Frugal WOWs” is
    important to small businesses: creating                                                Business has grown
    goodwill with customers has proven to be                                               300% year-over-year
    more about the act, rather than the cost.
                                                                                           since the inception of
    Nate Ru, founder of Sweetgreen                                                         Sweetgreen’s “Random
    restaurants, regularly has his employees                                               Acts of Sweetness
    leave small gift cards next to cars with
    parking tickets to create a memorable
    brand based on random acts of kindness.


    http://www.ana-valenzuela.com/wp-content/uploads/2010/02/paper-1.pdf
    http://boss.blogs.nytimes.com/2010/10/06/getting-people-to-care-about-your-business/
6   CUSTOMERS WILL STICK WITH
    YOUR LOYALTY PROGRAMS IF
    YOU GET THEM STARTED
                      Consumer psychologists Dreze & Nunes were
                      able to reveal just what makes a loyalty program
                      “stick” across all industries in their now infamous
                      car-wash study.

                      The researchers were able to show that
                      customers are TWICE as likely to stay with loyalty
                      programs if the programs appear to already be
                      started; tasks that seem to be under way are
                      much more likely to be completed.



            https://msbfile03.usc.edu/digitalmeasures/jnunes/intellcont/Endowed%20Progress%20Effect-1.pdf
7   CUSTOMERS LOVE BRAND
    STORIES AND SELLING THROUGH
    STORIES IS EFFECTIVE
    Research lead by Melanie Green & Timothy
    Brock reveals that a well told story is one of                                         When it comes
    the most persuasive forms of writing (or
    speaking) available.                                                                   to storytelling,
                                                                                           transportation leads
    They concluded that this was because stories
    have the the ability to “transport” us to another                                      to persuasion
    place, allowing brands to leave powerful (and
    lasting) messages to customers.




    http://www.ana-valenzuela.com/wp-content/uploads/2010/02/paper-1.pdf
    http://boss.blogs.nytimes.com/2010/10/06/getting-people-to-care-about-your-business/
8   IF YOU’RE STRUGGLING TO
    INNOVATE, YOUR CUSTOMERS
    ARE A GREAT RESOURCE
                        MIT's Eric von Hippel conducted a study
                        with the Institute of Management
                        Sciences on the relationship of “lead
                        users” (superstar customers) and
                        company innovation.

                        Through a study of 1,193 commercially
                        successful innovations across 9
                        industries, Hippel discovered that 60%
                        came from customers.


            http://www2.sa.unibo.it/summer/testi/15_muffatto/von-Hippel-Lead-users.pdf
            http://web.mit.edu/evhippel/www/papers/HBR%2099%20LU%20pub%20version%203M.pdf
9   SELLING “TIME” OVER MONEY
    HELPS CUSTOMERS SEE THE
    VALUE OF YOUR BRAND
    There’s a reason that inexpensive beer
    companies promote having a good time (ie,
                                                                Most people see
    “It’s Miller Time!”) rather than their low prices.          time spent as a
    New research from Stanford reveals that
                                                                better indicator of
    customers have more favorable feelings                      who they are vs.
    towards brands they associate ”time well
    spent” with; memories of good times were
                                                                money spent on
    more powerful than memories of great savings.               what they own


    http://www.gsb.stanford.edu/news/research/aaker_time.html
10   IF YOU BRING UP MONEY,
     IT MAKES CUSTOMERS
     MORE SELF-CENTERED
           Research by psychologist Kathleen Vohs has
           shown that when people are “primed” with images
           of money, they become more self-interested and
           less willing to help others.

           This reaction can be used by businesses that sell
           luxury items, but could backfire with promotions
           that are associated with doing things for others
           (ex: Mother’s Day Gifts)




           http://www.carlsonschool.umn.edu/assets/101518.pdf
EMAIL SUPPORT
SHOULD BE A PLEASURE,
  NOT A HEADACHE.
 If you love customers then you’ll love Help Scout.
 Start your free 15-day trial at www.helpscout.net




                  Infographic by @HelpScout

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10 Things Your Customers Wish You Knew About Them

  • 1.
  • 2. HOW WELL DO YOU KNOW YOUR CUSTOMERS? It’s a tough question. One way your business can find answers is to examine research in social psychology. Here are 10 such studies that reveal things your customers WISH you knew about them.
  • 3. 1 CUSTOMERS VALUE “GOOD” SERVICE MORE THAN “FAST” SERVICE Recent studies show that customers who receive competent, knowledgable, and all encompassing 15 minutes in services are more likely to remember their paradise is experience and tell their friends. better than 5 Additionally, customers cited “rude, incompetent and rushed” service as their #1 reason to abandon minutes in hell a brand, 18% more often than “slow” service. http://businessjournal.gallup.com/content/727/when-speed-kills.aspx#1 http://www.rightnow.com/files/analyst-reports/RightNow-Customer-Experience-Impact-Report-2011.pdf
  • 4. 2 CUSTOMERS LOVE PERSONALIZATION, THEY WILL GLADLY PAY FOR IT In a study from the Journal of Applied Social Psychology, researchers were able to increase the average tips that waiters received by over 23% (without changing service quality). They accomplished this by having waiters follow up with a second set of mints after they brought customers their check (waiters that brought mints but didn't follow up received an average of 7% less for their tips). http://businessjournal.gallup.com/content/727/when-speed-kills.aspx#1 http://www.rightnow.com/files/analyst-reports/RightNow-Customer-Experience-Impact-Report-2011.pdf
  • 5. 3 CUSTOMERS WILL REMEMBER YOU IF YOU CAN REMEMBER THEIR NAME Speaking of personalization, according to recent research examining brain activation, Nothing makes few sounds are as pleasant as hearing our own names. me feel loved quite like a Fact is, people are more attentive (and interested) when they hear their names; be post-purchase sure your small business takes advantage of email from getting to know your customers by using their names when appropriate. “DO-NOT-REPLY” http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1647299/
  • 6. 4 THERE ARE FEW THINGS CUSTOMERS TALK ABOUT MORE THAN A PLEASANT SURPRISE One of the most lasting (and talked about) customer experiences is a pleasant surprise: reciprocity (especially when it's unexpected) is a very powerful force. Zappos recognizes this: without so much as a single mention on their sales page, Zappos regularly upgrades customers to overnight shipping free of charge, just to brighten their day. http://econweb.umd.edu/~ozbay/reciprocity.pdf http://hbr.org/2010/07/how-i-did-it-zapposs-ceo-on-going-to-extremes-for-customers/ar/1
  • 7. 5 CREATING GOODWILL WITH CUSTOMERS DOESN’T NEED TO BE EXPENSIVE The concept of “Frugal WOWs” is important to small businesses: creating Business has grown goodwill with customers has proven to be 300% year-over-year more about the act, rather than the cost. since the inception of Nate Ru, founder of Sweetgreen Sweetgreen’s “Random restaurants, regularly has his employees Acts of Sweetness leave small gift cards next to cars with parking tickets to create a memorable brand based on random acts of kindness. http://www.ana-valenzuela.com/wp-content/uploads/2010/02/paper-1.pdf http://boss.blogs.nytimes.com/2010/10/06/getting-people-to-care-about-your-business/
  • 8. 6 CUSTOMERS WILL STICK WITH YOUR LOYALTY PROGRAMS IF YOU GET THEM STARTED Consumer psychologists Dreze & Nunes were able to reveal just what makes a loyalty program “stick” across all industries in their now infamous car-wash study. The researchers were able to show that customers are TWICE as likely to stay with loyalty programs if the programs appear to already be started; tasks that seem to be under way are much more likely to be completed. https://msbfile03.usc.edu/digitalmeasures/jnunes/intellcont/Endowed%20Progress%20Effect-1.pdf
  • 9. 7 CUSTOMERS LOVE BRAND STORIES AND SELLING THROUGH STORIES IS EFFECTIVE Research lead by Melanie Green & Timothy Brock reveals that a well told story is one of When it comes the most persuasive forms of writing (or speaking) available. to storytelling, transportation leads They concluded that this was because stories have the the ability to “transport” us to another to persuasion place, allowing brands to leave powerful (and lasting) messages to customers. http://www.ana-valenzuela.com/wp-content/uploads/2010/02/paper-1.pdf http://boss.blogs.nytimes.com/2010/10/06/getting-people-to-care-about-your-business/
  • 10. 8 IF YOU’RE STRUGGLING TO INNOVATE, YOUR CUSTOMERS ARE A GREAT RESOURCE MIT's Eric von Hippel conducted a study with the Institute of Management Sciences on the relationship of “lead users” (superstar customers) and company innovation. Through a study of 1,193 commercially successful innovations across 9 industries, Hippel discovered that 60% came from customers. http://www2.sa.unibo.it/summer/testi/15_muffatto/von-Hippel-Lead-users.pdf http://web.mit.edu/evhippel/www/papers/HBR%2099%20LU%20pub%20version%203M.pdf
  • 11. 9 SELLING “TIME” OVER MONEY HELPS CUSTOMERS SEE THE VALUE OF YOUR BRAND There’s a reason that inexpensive beer companies promote having a good time (ie, Most people see “It’s Miller Time!”) rather than their low prices. time spent as a New research from Stanford reveals that better indicator of customers have more favorable feelings who they are vs. towards brands they associate ”time well spent” with; memories of good times were money spent on more powerful than memories of great savings. what they own http://www.gsb.stanford.edu/news/research/aaker_time.html
  • 12. 10 IF YOU BRING UP MONEY, IT MAKES CUSTOMERS MORE SELF-CENTERED Research by psychologist Kathleen Vohs has shown that when people are “primed” with images of money, they become more self-interested and less willing to help others. This reaction can be used by businesses that sell luxury items, but could backfire with promotions that are associated with doing things for others (ex: Mother’s Day Gifts) http://www.carlsonschool.umn.edu/assets/101518.pdf
  • 13. EMAIL SUPPORT SHOULD BE A PLEASURE, NOT A HEADACHE. If you love customers then you’ll love Help Scout. Start your free 15-day trial at www.helpscout.net Infographic by @HelpScout