Applying behavioral science to customer loyalty strategies

Understanding consumer behavior can provide powerful insights for brands committed to improving the overall customer experience

Colin Shaw, CEO and founder of Beyond Philosophy, used his platform at CXN Live: CX APAC Online 2022 to explain the human behavioral science principles that brands can apply when creating customer experiences that will improve loyalty and retention. Shaw discussed how the principles of behavioral science can be used by brands in practical ways for mutually beneficial customer engagement.

Rational behavior, emotional responses and subconscious reactions can be understood and interpreted intelligently by brands, according to Shaw. He detailed the psychology behind the purchasing decisions customers make, which are often based on emotions and positive memories, as well as common psychological traits such as extremism aversion.

By giving practical examples of real-world consumer behavior, which included the tendency to choose the mid-priced of three options in a range of purchasing scenarios, Shaw explained how customers remember how brands make them feel and offered a selection of useful tools to drive value for businesses – and keep and retain loyal customers.