What are the common cognitive biases that affect customer decision making and how can you overcome them?

In every customer relationship, it's important to find out what the customer wants, to see if you can meet what they want in your product so they decide to do business with you. You know your product. You probably don't know all of what your customer wants because they may not tell you. To find this out, use The Platinum rule. Unlike the Golden Rule, which says to do unto others the way WE want to be done unto. The Platinum rule is to do unto others the way THEY want to be done unto. Find out what is most important to them first, and show them how your product will give them what they want

Marketers love the anchoring bias. You can think of many ads where a product is shown with one price that has a slash through it. The company then presents a lower price and discusses the "savings" to the customer.

A tomada de decisão é muitas vezes guiada por padrões de pensamento subjetivos e alguns vieses comuns incluem o de confirmação, de ancoragem, de disponibilidade, de manada e de recência. Para superar esses vieses utilize diversidade de perspectivas, informações abrangentes, contextualização de dados, singularidade e reforço de consistência.

Exploring the effectiveness of anchoring bias in marketing! Ever spotted those ads featuring a product with a crossed-out price, followed by a lower offer? It's a smart move to grab attention and emphasize savings.

In every customer relationship, prioritizing understanding of their needs is paramount. While you're well-versed in your product, it's essential to recognize that customers may not always articulate their desires explicitly. That's where the Platinum Rule comes in: understanding and catering to their preferences. By uncovering what matters most to them and demonstrating how your product aligns with their needs, you build trust and foster long-lasting partnerships.

It's crucial in every customer relationship to uncover what they desire and align your product accordingly to win their business. While you're familiar with your product, understanding all of the customer's preferences may be tricky as they might not explicitly share them. Adopting the Platinum rule shifts the focus to meeting their needs precisely how they want, emphasizing understanding their priorities first and illustrating how your product fulfills those desires.

In customer relationships, understanding their needs is key for winning their business. While you're familiar with your product, you might not know all their preferences. That's where the Platinum Rule comes in—treat them the way they want to be treated. Prioritize discovering what matters to them and demonstrate how your product fulfills those needs.

The anchoring bias is a favorite among marketers, often seen in ads where a product is displayed with a higher price crossed out, followed by a lower price highlighted as a "savings" to the customer. This technique leverages the initial higher price as an anchor, influencing perceptions of value and encouraging purchase decisions.

An example of availability bias is when one persons bad experience spreads to another persons choice of action. Staying positive and supportive with your customers is key. Yes there are times that not all can be pleased but in order to keep that customer to think of giving a second chance is treating them good and respecting their opinion and staying firm with your role. Giving discounts or other alternatives to simply satisfy the customer is a good way to acknowledge that the situation is difficult but encouraging them to still proceed with your business is gold. If the customer still does the transaction it’s a win win for both sides especially if they feel heard and end up with a bargain they can’t really complain too bad now can they?

Navigating the availability bias challenge: A single negative experience can influence others' decisions. Maintaining a positive and supportive approach with customers is crucial. While perfection is elusive, treating customers well, respecting opinions, and offering alternatives or discounts fosters loyalty.

The Bandwagon Effect affects customers who are more likely to choose a product if they see others doing the same. While the article mentions social proof, it doesn't cover the negative side—too much popularity can lead to perceived scarcity or diminished uniqueness. Counter this by assuring customers of product availability or by offering customization options to maintain a sense of uniqueness.

Ever notice how people tend to go for a product just because others are? The Bandwagon Effect is real, but there's a flip side. Too much popularity might make it seem less special. To tackle this, reassure customers about product availability or provide customization options for that unique touch.

Loss aversion can be a challenging foe in client decision-making. Who, after all, wants to part with something they already possess, even if it isn't the greatest choice? Businesses must comprehend this thinking and use creativity if they want to win over customers. Emphasising the benefits of a new product or service can make it feel like an exciting prospect while providing risk reduction strategies like guarantees or free trials can reduce the fear of loss. In the end, it all comes down to framing the issue such that clients feel like they are getting something worthwhile rather than losing something they are accustomed to.

Navigating loss aversion in client decision-making can be daunting, as individuals tend to cling to what they possess, even if it's suboptimal. Businesses must grasp this phenomenon and employ innovative strategies to win over customers. By spotlighting the benefits of a new product or service, it can be portrayed as an exciting opportunity, while offering risk-reduction measures like guarantees or free trials can assuage fears of loss. Ultimately, success hinges on framing the situation to emphasize the gains rather than the losses for clients.

Recency bias is when we give more weight to recent experiences, shaping our overall perception. For instance, a single interaction with a customer service rep can influence how we view the entire company or product. To counter this bias, ensure consistency in quality across all touchpoints and follow up with customers to reinforce positive experiences.

I'd add Negativity Bias when customers tend to weigh negative experiences more heavily than positive ones. To counter this, businesses should not only focus on minimizing negative experiences but also on amplifying positive ones through surprise rewards or exceptional service.

There’s another cognitive bias called peak - end bias. That might not be the official name but here is the description and I think it is particularly relevant with customer experience. And the bias is - we as humans tend to remember the peak moment of an experience and the end of the experience. So, if we want to impress clients and customers- pay close attention to those peak moments and even more significant - those last moments.

The bandwagon effect is the following the crowd pattern. The customer will need to know more about who else uses the product and how it is benefitting them, etc. Try to be objective about the product and services, at the same time, using the use cases would help