Just replace the world 'pinball' with the words 'digital marketing' as you listen to the people describe their experience. I am sure you'll be able to relate to the discussion. I enjoy explaining digital approaches to business challenges as clearly as this video talks about pinball. Enjoy.
Understanding Customer Loyalty as Confirmation Bias
A business can understand customer loyalty as a manifestation of the positive side of Confirmation Bias. This bias is inherent in people's mental model, and is the tendency to interpret new evidence as confirmation of one's existing beliefs or theories.
“The human understanding when it has once adopted an opinion draws all things else to support and agree with it. And though there be a greater number and weight of instances to be found on the other side, yet these it either neglects and despises, or else by some distinction sets aside and rejects.”
— Francis Bacon
You can think of confirmation bias in a negative manner, as a way to prevent you from understanding the world correctly by blinding you to a proper understanding of the evidence in front of you. And you would be correct to look at it in this way. In the real world of contradictory ideologies,
Confirmation Bias is the mental approach that allows two people with opposing views on a topic to see the same evidence and come away feeling validated by it. Unchecked, it can create a dangerous thought bubble that isolates and destroys your ability to relate to the world.
In the context of this conversation, however, we are looking at the positive side of Confirmation Bias. (The technical term for this use of Confirmation Bias is Apophenia).
Looking at the Shapes of Clouds and Mountains
Confirmation Bias has a positive aspect to it. It has to do with patterns and reassurance. The mind is designed to seek patterns in the world and it will create and sustain them automatically, often from evidence that does not support such patterns. For example, people who see figures in the shapes of clouds are using a form of confirmation bias to ‘trim’ what they see to belong to a category of things they know about (sheep or cows or whatever object is on their minds at the time). The trimming process removes whatever elements in their mind would interfere with the creation and maintenance of this mental image. The ‘mental trimming process’ is reinforced via confirmation bias to make the image become clear in their minds, even though it does not exist in the real world.
In the case of looking at the shape of clouds, this is a very mild process and does not involve confrontation. Someone else may disagree with an individual about the shape they see in a cloud, but this will likely not become cause for a duel to the death. However, It is possible for one person to transfer to another person the ability to see the same object in a cloud by telling them about it in a cooperative manner. By describing the shape of the cloud in terms of the elements of the object desired, one person can ‘make’ the other person see what they believe they see in the clouds.
The same process also happens when viewing the shapes of some mountains. People describe shapes and can transfer this description to another person’s view of the same mountain so they both ‘see’ the same thing, even though it is clear ‘the thing’ they are looking at is not really a part of the mountain (or the cloud) in the least.
Triggering Confirmation Bias To Create Customer Loyalty
To apply Confirmation Bias within a customer centric Digital Investment Plan, a business can add a ‘crazy’ element to their marketing approach. By committing a potential and/or existing customer to perform this ‘crazy’ action, the business triggers Confirmation Bias, as the individual will be naturally driven to justify their action to others.
The elements of the Digital Investment Plan come into play to create and maintain the justification details that a customer can use to confirm their beliefs about the action they have performed.
The trigger for confirmation bias can be a story told about the product and its details, or a story about how the product fits in the customer’s world. In other words, the trigger can be a real thing or a story that organizes the world into a shape that helps explain a little part of the world.
Depending on the type of customers in the business target audience, the elements may be 'crazy' or they can be as simple as a higher price than average to trigger a justification discussion.
By designing the Digital Investment Plan from the start to include these triggering elements, a business can run effective campaigns to create confirmation bias driven discussions between customers and non-customers, establishing a high probability of getting loyal customers to stick with the product while at the same time having them advocate the product (in the same way that people share their description of the shape of a cloud) with others.
Confirmation Bias discussion from Science Daily
Pareidolia: Seeing Faces in Unusual Places
Being Amused by Apophenia
Principles Behind The Digital Customer Investment Approach to Customer Centricity
The term Digital Customer Investment (DCI) separates its concepts and objectives from more commonly used concepts like Digital Operations, or Digital Marketing, or Digital Solutions. Any of those phrases carries with it a strong direct transactional intention that bleeds into the activities defined for Digital Customers. This pre-defined intention can act as a prison preventing innovative thinking in digital customer investment. To open a perspective to different approaches that are customer-centric in nature, I have defined digital customer investment along the following principles:
A properly applied Digital Customer Investment Marketing plan will support most of these principles from the start and use them as the basis for the creation of the messaging, measurement and implementation of the plan.
See if this sounds familiar:
Going forward, we need to drill down into the customer priorities and engage a deep dive into our big data storage. This action will attack the issues we have found in customer satisfaction, which have not been addressed by our previous representatives. Our stakeholders are concerned about the lack of action in this matter, and want everyone to have a clear idea of the end of play situation we want to create, as well as the leverage we can bring upon the customer to deliver the new numbers that our growth planning requires. Fortunately, our thought leadership research group has come up with a set of actionable ideas that allows all of us to get in the tent and get a group aha effect going, so we are all clear on the end result we are trying to obtain, as quickly as possible.
Once you catch your breath after reading the paragraph above, you may appreciate the importance of verbal clarity when it comes to creating a plan to improve customer value recognition inside a business.
This is why the Digital Customer Investment Plan is called precisely that. It has a purpose that is easy to understand. It does not take a lot of energy on the part of a team to 'get' the objectives the plan provides and the methodology it uses. It should be self-evident. This accessibility, once the plan is created and agreed upon, allows the team to spend its energy focused on the things that matter, and not in getting into endless meetings to discuss 'what it all means' and 'what we are trying to do.'
Organizations that are small or medium sized may find this transition simpler because their focus on the customer may be more accessible to them, with fewer layers to work with and fewer years of history 'of how things are done around here' to work through.
Recognizing customer value may seem obvious, but it can become fragmented because individual areas of the organization view customer value through their own internal lenses. Accounting may view customer value in one way, while sales views a customer in a different, sales-related way, and of course, marketing views the customer in its own particular way.
Over time, this fragmentation sets in and prevents a clear view of the customer as someone who does not attend all the meetings and does not understand the internal history behind this or that decision. This is one way that organizations lose touch with their customer base.
Once this behavior sets in and is organizationally valid, the interests of the customer become secondary to the interests of the individual departmental groups laying claim to the 'real' value of the customer.
The integrated Digital Customer Investment Plan is designed to avoid these issues before they become chronic.
Daniel Loebl is an experienced Marketer focused on expanding the recognition of customer value inside a business and keeps a 'beginner's' mind approach to business problems.