A practical guide to Customer decision making

When the Nobel-prize winning economist professor Daniel Kahneman wrote his book Thinking Fast and Slow, he introduced the concept that we had two ways of thinking about things. He named them System 1 and System 2. The two systems work together to help us make decisions about things. 

When we applied these concepts to decision-making in Customer Experience for our book, The Intuitive Customer, we renamed them. The Intuitive System is System 1, and the Rational System is System 2. The Intuitive System makes instant judgments on things and is always running. You aren’t aware you are using the Intuitive System. The Rational System concentrates on thinking about something and is called into service when needed. You are always aware you are using your Rational System.

We discuss the differences between the two ways our brains think about things to make decisions a lot. Often, they don’t agree and come to different conclusions.

However, the two systems do not always conflict. Sometimes they run in tandem, serving different functions and complementing one another with their strengths.

Sometimes only one of them is working at any given time. Flying solo, the system in play will make the final decision, and the other one won’t interfere.

In other words, the two systems are not exclusive. It is complicated how the two systems work together. Understanding the two as well as you can helps you see patterns in customer behavior. Moreover, knowing how the two systems work can help you design a Customer Experience strategy that works with these patterns to make it as easy as possible for customers to decide to go with you.

This episode of The Intuitive Customer discusses what the two systems of thinking are and how they interact in our minds when making decisions. We discuss which system is better for what and why the two systems tradeoff tasks. We also give pointers on what you should do with your Customer Experience strategy to take advantage of these tradeoffs, as well as what pitfalls you should avoid when working with this crucial customer behavior concept.

 

The Intuitive Customer podcasts help you take your Customer Experience to the next level by unlocking the “hidden” aspects of your experience and determining what really drives value for your customers.

To find out more about how your organization’s marketing can improve customer loyalty and retention, contact us at www.beyondphilosophy.com.

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