We’re all irrational customers
“We don’t think the way we think we think.”
Or, put another way, our brains operate in a fundamentally different way than previously assumed. Given that we perceive, process, and act on information primarily through subconscious “irrational” processes, the methods companies use to attract and retain customers are fundamentally flawed. We’ll explore the research and implications in this site.
A wealth of recent research concludes that we are far from the logical, reasoned homosapiens we profess to be. On the contrary – studies show that we’re irrational and emotional. In research cited by Gerald Zaltman in his book How Customers Think, over 95% of our cognitive activity takes place in the subconscious. And we use much of the remaining 5% to try to explain to ourselves why we act the way we do. Research shows that we are not very honest with ourselves: the subconscious is the ultimate “spin doctor.”
In short, customers are not very rational or self-aware beings; in fact, none of us are. This leads to a fundamental question: if customers can’t even understand their own motivations and wishes, how can a company find real answers that will lead to keeping more customers over a longer period of time?
Bill Cusick, President of Vox, Inc., is intrigued by this dilemma. He’ll be posting his thoughts and ideas about irrational customers here, and responding to your feedback.
About Bill Cusick
Bill Cusick is founder and CEO of Vox, Inc., a successful customer experience consulting firm in Chicago. Vox helps companies increase customer retention and profitability by strategically improving the customer experience.
Prior to founding Vox, Bill worked for Allstate Insurance Company for 11 years, leading a number of communications, marketing and advertising programs, and eventually running the Customer Communications area, in charge of communicating with Allstate’s 14 million-plus households. Bill conceived and implemented a new communication system that allowed for more personalized agent communications to improve customer retention, while saving the company $27 million in processing costs.
More recently, Bill has worked with both large and small clients to increase profits through improved customer experiences. Corporate clients have included Zurich US, AIG, and Allstate Insurance, Commerce Clearing House, as well as mid-sized banks, accounting firms, software development companies and more.
Bill is currently writing a book, “Irrational Customers,” that demonstrates why companies have been approaching customer retention in the wrong way…and just what they can do about it. Bill is a member of Vistage, the world’s leading chief executive organization, and Chicago Executives Club.
Cusick earned his B.S. in business and advertising from Bowling Green State University in 1985, and a J.D. from John Marshall Law School in Chicago in 1994. He lives with his wife, three kids, two dogs, and a mouse (uninvited) in a relatively draft-free Victorian in Oak Park, Illinois.
