WANT TO PERFECT YOUR COMPANY’S SERVICE? USE

BEHAVIORAL SCIENCEBY RICHARD B.CHASE AND SRIRAM DASU

PRESENTED BY MUHAMMAD IMRANINSTIUTE OF MANAGEMENT SCIECE

PESHAWAR.IMRANM224@GMAIL.COM

BEHAVIOR SCIENCE

• Behavioral science is concerned with the study of human and animal behavior. Scientists in this field looks at individuals and their behavior along with the behavior of societies, groups, and cultures, as well as processes that can contribute to specific behaviors

• Deals primarily with human action and often seeks to generalize about human behavior in society

“The customer’s perception is your reality.” – Kate Zabriskie

• How customers experience the passage of time?• How customers interpret an event after it’s

over? 

FACTOR THAT EFFECT THE FORMATION OF PERCEPTION

• “You can't cover people with perceptions because we are all different." ( Bernhard Langer) 

• SEQUENCE EFFECTS:• People recall a few significant moments vividly

and gloss over the others- they remember snapshots, not movies

• People prefer a sequence of experiences that improve over time

• All assessments of the experience that’s based on three factors: sequence of pain or pleasure, the high & low points, & the ending

“Many realities hidden behind wall of perception.” (Toba Beta)

• RATIONALIZATION EFFECTS:• People want explanation• “Counterfactual thinking”-describes the

tendency people have to imagine alternatives to reality.

• “There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”Sam Walton, Founder of Wal-Mart

• DURATION EFFECTS:• People who are mentally engaged in a task don’t

notice how long it takes• Increasing the number of segments in an

encounter lengthens its perceived duration

PRINCIPLE 1

• “Rule 1: The customer is always right. Rule 2: If the customer is ever wrong, re-read Rule 1”(Stew Leonard)

• GET THE BAD EXPERIENCES OUT OF THE WAY EARLY:

• Behavioral science tells us that, in a sequence of events involving good and bad outcomes. People prefer to have undesirable events come first.

• Provide the service at the right time, even though the customer don’t complaint

PRINCIPLE 2

• “In the world of Internet Customer Service, it’s important to remember your competitor is only one mouse click away." Doug Warner

• SEGMENT THE PLEASURE, COMBINE THE PAIN:

• Experiences seem longer when they are broken into segments

• Many businesses have grasped this notion i.e. health care, phone help-line menus

PRINCIPLE 3

– “If you work just for money, you’ll never make it, but if you love what you’re doing and you always put the customer first, success will be yours.”Ray Krock

• BUILD COMMITMENT THROUGH CHOICE:• People are happier and more comfortable when

they believe they have some control over a process, particularly an uncomfortable one

• i.e. different rates of berth in airplane or train, patient disease alternative treatment

• For instance Xerox

PRINCIPLE 4

• “It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.” – Henry Ford

• FINISH STRONG: • Also called service bookends• The end is far more important because it's what

remains in the customer’s recollection• Company is better off with a relatively weak start

and a modest upswing at the end than with a boffo start and a so-so ending

• People’s innate preference for improvement

PRINCIPLE 5

• “Get closer than ever to your customers. So close, in fact, that you tell them what they need well before they realize it themselves.” – Steve Jobs

• GIVE PEOPLE RITUAL AND STICK TO THEM:• Ritual are particularly important in long term,

professional service encounter• Behavioral science observe that these rituals

provide an implicit standard for evaluating service encounter