Editor's pick
🔥The human factor in service design 🔥
Focus on the human side of customer service to make it psychologically savvy, economically sound, and easier to scale. Poor customer service isn’t a headache just for consumers; it’s a problem that vexes senior managers too. Balancing the trade-offs between the cost of services and the customer experience benefits they provide is difficult. Ensuring that frontline workers can efficiently and consistently execute service offerings across a far-flung organization is harder still. Along the way, many companies lose sight of what makes human beings tick—for instance, by overlooking well-known principles of behavioral science when delivering services—and thus unwittingly predispose customers to dissatisfaction.
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Human Cognition
Loss Aversion – Really, What’s the Worst that Can Happen?
There’s a cognitive bias that makes us sadder to lose something than it makes us happy to gain it. This causes us to be afraid of loss – even when that fear is illogical. It prevents us from taking small risks to make big gains, for example. Overcoming loss aversion can help you build better products and manage your life in a more objective manner.
Loss aversion is a cognitive bias which is most readily identified by economists rather than psychologists. It’s the fear of losing something particularly when the rewards for that loss are unclear. The bias occurs when it’s hard to weigh up the consequences of loss.
Human Memory
The Most Important Rule in UX Design that Everyone Breaks
Psychology and user experience (UX) may be two different branches of knowledge, but they still have a lot in common. In fact, UX gets most of its knowledge from psychology because the latter defines what people perceive to be a good web design and how information should be presented online to maximize the chance of retention.
A great example of a psychological concept being used in UX is Miller’s Law. It was first described in the famous 1965 article “The magical number seven, plus or minus two: some limits on our capacity for processing information” and theorizes that people can hold up to seven objects in their working memory.
According to this rule, information should be organized in categories no larger than 9, but preferably 7. The rule can be applied to any aspect of life that involves performing a relatively complex task.
But how does a rule that was generated in 1965 relate to modern UX designs?
CX & Psychology
Putting behavioral psychology to work to improve the customer experience
A vast body of research within the field of behavioral psychology offers valuable insights into how customers experience service interactions and form their opinions and memories of those encounters. Research undertaken by Nobel laureate Daniel Kahneman and George Loewenstein forms the foundation upon which the practical principles have been developed. In addition, work by pioneers such as Dan Ariely, Uri Gneezy, John List, and Richard Thaler has also had a significant impact on how individuals make decisions. Based on this work, McKinsey has developed a framework for categorizing common actions that attempt to spur particular behaviors from individuals in consumer and other settings. The framework is called CHOICES, which is an acronym for context, habit, other people, incentives, congruence, emotions, and salience