All Customers Are Irrational: Understanding What They Think, by William J. Cusick

By William J. Cusick

As many companies are learning, shopper habit doesn’t consistently make feel. that truly shouldn’t be superb. As contemporary reports have proven, humans are likely to base their judgements on extra unconscious, emotional wants than on rational, sensible offerings. What’s extra, clients aren’t in a position to let you know effectively why they do what they do. Combining fresh examine findings with real-world examples from his consulting perform on patron event, William J. Cusick examines how the sub­con­scious a part of the mind drives the selections and behaviour of each patron every day and introduces the idea that of "the irrational customer." All buyers Are Irrational exhibits why companies needs to swap their method of attracting and preserving consumers, and proposes methods they could modify their recommendations on every thing from shopper examine, product layout and site improvement to name middle administration, worker recruitment, and retail shop layouts, by means of concentrating on what clients are literally doing rather than what they’re announcing. sincere, direct and insightful, All shoppers Are Irrational may also help companies faucet into the impulses and motivations that either allure and preserve shoppers for the lengthy haul.

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We were responsible for writing and producing many of the communications—renewal packages and such—that were sent through the mail to the fourteen million or so households that carried auto or homeowners insurance across the country. The system that was used at the time was a classic example of old-school logistics and coordination. Most of the mailings were customer letters and inserts that were preprinted and dropped into either bills or renewal packages. Millions of preprinted, generic communications were mechanically inserted at thousands per hour within the massive internal letter shop facility.

Then, the following year, you just maintain that 89 percent retention rate. Same with the next year. So, what’s the big deal? It’s this: You are piling those additional 5 percent of customers in the second and third year on top of the 5 percent from the year before. Take a look at the cumulative effect of just an incremental increase in your retention numbers. As you can see, in the first and second year the additional customers you retain begin to create a positive impact on the total number of customers.

As we’ve developed, it’s natural to assume that this part of our brain has become more and more sophisticated. While we still subconsciously identify patterns, determining whether they are good or bad, the intricacy of these patterns is much more complex or subtle. In fact, as you move up, south to north, through the brain, the processing becomes more and more sophisticated, yet it’s only the tip of this mental iceberg that we can consciously access. Chapter 2: Your Irrational Customers 39 How our brains got this way is an issue being researched and argued about right now.

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