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Modern CX is Behavioral: How the Peak-End Rule Can Revolutionize Customer Experience

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Aug 28, 2022

The traditional CX approach and its challenges

In 2022, almost 90% of C-level executives reported that the needs of their customers and employees change faster than they can adapt to those needs.1 While those numbers sound shocking, it shouldn’t come as a surprise. Larger companies comprised of many departments tend to struggle with alignment and visibility — making a cohesive CX near impossible.2

References

1. Janczura, T. (2022, April 26). Accenture Announces Accenture Song. Accenture. https://newsroom.accenture.com/news/accenture-announces-accenture-interactives-evolution.htm

2. Morgan, E. (2014, September 4). Why Companies Can’t Get Aligned and How You Can. Inc.Com. https://www.inc.com/eric-morgan/why-companies-can-t-get-aligned-and-how-you-can.html

3. Ahmed, B., Zada, S., Zhang, L., Sidiki, S. N., Contreras-Barraza, N., Vega-Muñoz, A., & Salazar-Sepúlveda, G. (2022). The impact of customer experience and customer engagement on behavioral intentions: Does competitive choices matters? Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.864841

4. Bhattacharjee, D., Gilson, K., & Yeon, H. (2016, March 11). Putting behavioral psychology to work to improve the customer experience | McKinsey. McKinsey & Company. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/putting-behavioral-psychology-to-work-to-improve-the-customer-experience

5. Devine, J., & Gilson, K. (2010, February 1). Using behavioral science to improve the customer experience | McKinsey. McKinsey & Company. https://www.mckinsey.com/capabilities/operations/our-insights/using-behavioral-science-to-improve-the-customer-experience

6. Moleskis, M. (2020, April 27). 7 Behavioral Tips for Designing the Ideal Customer Experience. The Decision Lab. https://thedecisionlab.com/insights/consumer-insights/7-behavioral-tips-for-designing-the-ideal-customer-experience

7. Chase, R. B., & Dasu, S. (2001, June 1). Want to Perfect Your Company’s Service? Use Behavioral Science. Harvard Business Review. https://hbr.org/2001/06/want-to-perfect-your-companys-service-use-behavioral-science

About the Authors

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Dr. Sekoul Krastev

Dr. Sekoul Krastev is a decision scientist and Co-Founder of The Decision Lab, one of the world's leading behavioral science consultancies. His team works with large organizations—Fortune 500 companies, governments, foundations and supernationals—to apply behavioral science and decision theory for social good. He holds a PhD in neuroscience from McGill University and is currently a visiting scholar at NYU. His work has been featured in academic journals as well as in The New York Times, Forbes, and Bloomberg. He is also the author of Intention (Wiley, 2024), a bestselling book on the science of human agency. Before founding The Decision Lab, he worked at the Boston Consulting Group and Google.

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Sarah Chudleigh

Sarah Chudleigh is passionate about the accessible distribution of academic research. She has had the opportunity to practice this as an organizer of TEDx conferences, editor-in-chief of her undergraduate academic journal, and lead editor at the LSE Social Policy Blog. Sarah gained a deep appreciation for interdisciplinary research during her liberal arts degree at Quest University Canada, where she specialized in political decision-making. Her current graduate research at the London School of Economics and Political Science examines the impact of national values on motivations to privately sponsor refugees, a continuation of her interest in political analysis, identity, and migration policy. On weekends, you can find Sarah gardening at her local urban farm.

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I was blown away with their application and translation of behavioral science into practice. They took a very complex ecosystem and created a series of interventions using an innovative mix of the latest research and creative client co-creation. I was so impressed at the final product they created, which was hugely comprehensive despite the large scope of the client being of the world's most far-reaching and best known consumer brands. I'm excited to see what we can create together in the future.

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BEHAVIORAL SCIENTIST

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OUR CLIENT SUCCESS

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Annual Revenue Increase

By launching a behavioral science practice at the core of the organization, we helped one of the largest insurers in North America realize $30M increase in annual revenue.

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Increase in Monthly Users

By redesigning North America's first national digital platform for mental health, we achieved a 52% lift in monthly users and an 83% improvement on clinical assessment.

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Reduction In Design Time

By designing a new process and getting buy-in from the C-Suite team, we helped one of the largest smartphone manufacturers in the world reduce software design time by 75%.

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Reduction in Client Drop-Off

By implementing targeted nudges based on proactive interventions, we reduced drop-off rates for 450,000 clients belonging to USA's oldest debt consolidation organizations by 46%

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