We had Claudia Townsend, associate professor of marketing at the University of Miami at the Miami Herbert Business School, as a recent podcast guest. Townsend researches visual processing and visual design’s effect on customer behavior. Townsend chose to study it because there was shockingly little academic research on it. Furthermore, in 2005 at the height of Apple’s existence, Townsend was clear that much of the brand’s popularity was due to its design, which was beautiful, intelligent, and simple—right down to the box it came in. 

Apple users often hang onto the box their iPhone came in. Why? Townsend decided that she wanted to study why. 

It will likely come as no surprise to you that I am one of the people that still have their iPhone box. What surprised me about the box was how tightly the lid fits. When I think about it, the tight-fitting lid represents precision to me at a subconscious level, making me feel good about the phone I bought. 

Before Apple, most of the aesthetic design in packaging or products was reserved for those offerings that had met every other function. In other words, luxury products focused on these elements to differentiate themselves from similar products that might have had all the same roles for a lower price. However, that mindset has trickled down into other areas besides luxury products, making it a “must-have” rather than a “nice-to-have.” As a result, the focus on aesthetics has become universal in marketing efforts today. 

Townsend focuses on the visual in her research, but only on those aesthetic elements that hold the functionality as constant. In other words, she looks at products that change the way something looks without changing its functionality. Moreover, Townsend chooses those products whose aesthetics and functionality are. In one of Townsend’s early papers, she analyzed the hyper-rational financial disclosures, i.e., annual reports to investors, to find evidence of esthetics’ effect on behavior. Research suggests that rationality should drive your financial trading behavior. However, she wanted to see if there was any irrationality that influenced this sector of customer behavior.  

Townsend says that we are aware of the effect aesthetics has on some purchasing categories, like clothing and cars. However, we aren’t as aware of how it affects us in other buying decisions. Based on Townsend’s research, the Annual Report’s look and feel influences investor behavior, too, even among those more experienced investors.

Annual reports summarize past performance for the year and (ostensibly) set performance expectations for the coming year. Moreover, annual reports often have statements from the CEO and other leadership about the company’s plans. From a rational perspective, what is important here is the numbers and the visions for the future—not the pretty colors on the cover. Townsend research indicated that the cover design did matter. 

In the study, Townsend and her team made design elements quantitative. The team looked at the number of colors and images used on the front cover and the first couple of pages, and then the report. The findings showed that because a financial statement tends to be bland and dull to read, meaning black text on a white page, the addition of any color or imagery helped encourage investors to buy more stock in the company. Therefore, while it might not be intuitive to those institutions to spend a lot on graphic design and more expensive printing of an Annual Report, investing in that imagery and an additional color has a benefit. Therefore, branding teams should ensure that the annual reports were on brand, and the images they used supported the brand promise. 

Much of the research we look at on consumer behavior shows that people want to feel good about themselves, and owning good-looking products is a quick and easy way to feel good about ourselves. It has an effect called self-affirmation, which is bolstering our sense of self and who we are. However, we also make assumptions based on esthetics about the rest of a company or an organization. When things are beautiful in design, it portrays competence. So, Townsend says these findings show that consumers are thinking about the extraneous, tangential signals that companies extend to them all the time. 

Townsend says there are two things organizations should remember about this. 

1. There is a universal appreciation of aesthetics. All of us have preferences for visuals. Even if a person doesn’t consider themselves “fashionable,” they know there are things they would rather look at than other things. 
2. This appreciation is innate and unconscious. We do not employ strategy in our preferences; we self-identify with things we like esthetically and automatically make it a part of ourselves. 

To go into full geeky detail about this, Townsend says the visual system works on different levels. She says you can think of it like a timeline:

• Your immediate reaction is automatic, which is to seek symmetry. We like balance because it’s easy to process and understand.
• The next level is categorization, which relates to prototypicality. So, if we can recognize what the image is, we like it more. 
• The third level, which is learned and culturally-influenced, is what we recognize as “fashionable.” For example, stainless steel appliances have been fashionable in kitchen appliances for years. However, the trend is moving toward white appliances again, which people associate with clean and nice. 

Much of the research we look at on consumer behavior shows that people want to feel good about themselves, and owning good-looking products is a quick and easy way to feel good about ourselves.

Framing effects come into play here, as well. You will recall that Framing Effects refer to how the way you present choices affects people’s perception of them. Townsend did another study with Julio Sevilla about the amount of space between items in a retail setting and how that affected customer behavior. She describes the study as a simple manipulation. They displayed many products on a 4′ x 4′ square and an 8′ x 8′ square, both in-person and on-screen. Townsend and Sevilla discovered two effects. 

The first effect was when people see products spaced out, people perceive them as more expensive than when they are close together. Townsend says this is a learned response from the culture. Fancy stores tend to have fewer products and higher markups, so we associate higher prices with more space between merchandise. However, Townsend says one can change this effect by telling people whether the brand is expensive or not, and then the distance between them didn’t matter. 

The second effect was that when the products had a lot of space between them, people perceived them as more esthetically pleasing than when they were close together. Townsend says that when the entire arrangement looks better (i.e., more spaced out), people assign more beauty to each additional product, and, consequently, we assign more value to them. Townsend said this was true for products that range from food to tools and so on. Moreover, this effect was harder to change by suggestion. 

Back in 2002, I spoke with Ian McAllister, former Chairman and Managing Director of Ford Motor Company, Ltd., in the UK for my book, Building Great Customer Experiences (Palgrave Macmillan, 2002). He explained to me that the more space you have in a car, the more luxurious it feels. I have to agree with that. I have purchased several large vehicles, some of them Fords, and I admit that the size was part of the appeal. 

Townsend has a few suggestions when it comes to practical tips about the effects of esthetics on customer behavior.

1. Realize that aesthetics matter when customers look at things. Customers care what things look like more than you think and for all types of purchases. For example, we want a more attractive apple because we believe it is healthier or staying fresh longer. However, we also have these same standards when choosing power tools or air fresheners, too, which are purchase categories we might not think esthetics are as important. 
2. Design your offering to appeal to our bias for attractive aesthetics. Managing customer perception of your aesthetics is essential. Look for ways to present your products in a way that looks better to appeal to the customer’s sense that it will “be better.” In other words, hire a designer; it will be worth the money. 
3. Don’t skip this exercise because your offer is intangible. Townsend says that people who provide services don’t think aesthetics have the same effect on their experiences. However, they do, and often it matters more than when the experience is product-based. Many times, when there is no product to judge, tangential cues—like whether the office appears organized, if the website was easy to use, or if the office floor shows damage—matter more than they would otherwise because it is all customers have to evaluate the experience. 
4. If you don’t know what is essential to customers visually, then find out. As I often say, you need to understand what drives your organization’s value in all areas of your customer experience, and the visual element is no different. Our Emotional Signature® research can help determine what makes a difference to people and helps drive value for your bottom line. 

I would add that it reinforces how important the details are in a customer’s perception of your experience. They have a much more dramatic effect than you might think. After all, who would have thought that the number of colors and images you use on an Annual Report to report a company’s financial details matters one wit? But it does. 

When it comes to visuals and design, you need to be deliberate about the signal you send to customers. They notice them all whether you do or not—and it could lead to them keeping the box of your competitor’s product in the closet instead of yours.

To hear more about this idea in more detail, listen to the complete podcast here.

Colin Shaw is the founder and CEO of Beyond Philosophy, one of the world’s leading Customer experience consultancy & training organizations. Colin is an international author of six bestselling books and an engaging keynote speaker.

Follow Colin Shaw on Twitter @ColinShaw_CX

The post Aesthetics: Why This is A Vital Part of Your Experience appeared first on Beyond Philosophy.

When the stock market tanks like it did recently, most CEOs would be worried about their revenue also falling (not to mention falling figures from those CEO bonuses we all hear so much about).  Most are likely to suggest people need to work harder to weather the storm.

Not Schultz.

In a memo early September, Schultz decided to address the emotions both his employees and Customers feel in a falling market like the one we bore witness to earlier in the month.

To his employees, he said, “…although we are not immune from the global stock market selloff that has now made its way to Wall Street, my confidence in our company and in all of you has never been greater.”

About how we wanted his partners (retail employees) to treat Customers he said:

“Today’s financial market volatility, combined with great political uncertainty both at home and abroad, will undoubtedly have an effect on consumer confidence and perhaps even our customers’ attitudes and behavior. Our customers are likely to experience an increased level of anxiety and concern. Please recognize this and – as you always have – remember that our success is not an entitlement, but something we need to earn, every day. Let’s be very sensitive to the pressures our customers may be feeling, and do everything we can to individually and collectively exceed their expectations.”

I talk a lot about Customer-centricity of organizations. We use a model called Naïve to Natural that measures how an organization is oriented toward Customers, with the Naïve not having a Customer focus and the Natural having the most Customer focus. This communication to employees shows me a customer centric company that is lead by the top down on this principle.

I love the line that says, “success is not an entitlement, but something we need to earn, every day.” Never truer words were spoken, particularly when you are addressing Customer Experience.

Customer Experiences happen in the moment, and these moments happen every day, every hour of operation, in every channel. In all of these moments, an employee can make or break a Customer Experience. This is why training and employee engagement are so key to its success. They need the tools and tactics at their disposal when these moments occur.

It is also why it so important to have the buy-in of your senior management and leadership teams for your Customer Experience agenda. This important training takes time and money, two things on which most leaders have a lot of opinions, especially about how they will be spent. Without this commitment, you could end up with a great plan that everyone ignores because it isn’t the priority at the moment.

I also like how his retail employees are considered partners. How employees feel about their job shows in the Customer Experiences they provide. When they feel they are a valued member of the team, it shows. Schultz understands this in the way he refers to them and also with key phrases like “my confidence in all of you.”

Schultz understands that Employees and Customers feel emotions caused by the world around them and these emotions affect their behavior. He values his Customers enough to care how they feel coming into his experience and takes steps to help his employees have the appropriate tools to react. He also leads his Customer-centric culture by example. He works to ensure employees felt valued and cared for so they will continue to deliver the experience that makes Customer feel valued and cared for. When it comes to Customer-centricity, there is no question that he gets it.

Does your CEO get it, too?

If you enjoyed this post, you might be interested in the following blogs:

• 5 Reasons Your KPIs Are Hurting Your Customer Experience

• Starbucks: Real Concern or Just Good Marketing?

• 7 Signs That Your Executive Team is Not on Board With Your Customer Experience Agenda

Colin Shaw is the founder and CEO of Beyond Philosophy, one of the world’s leading Customer experience consultancy & training organizations. Colin is an international author of five bestselling books and an engaging keynote speaker.

Follow Colin Shaw on Twitter & Periscope @ColinShaw_CX

The post Starbucks CEO Gets It, Does Yours? appeared first on Beyond Philosophy.

Here are four lessons everyone can learn from a Grocery Store:

1. How it smells affects how it sells

Using smells in your Customer Experience is olfactory marketing, and it works. Smell is one of the fastest senses to process, and it is connected directly to the part of the brain that processes emotion. It’s no accident that they put the flowers right at the front of the store. They keep the baked goods right up there also. Both of these pleasant scents stimulate happy feelings and promote your desire to buy.

How you can apply it to your business:

Now we don’t all sell flowers and baked goods so that trick won’t work for everybody. Using scents to help create a positive experience for your retail customers works for many different industries though. Maybe you have a pleasant coffee scent in your bookstore or a light perfume scent in your clothing boutique. Don’t underestimate the scent in your retail experience design. We did some work for one of the Courier companies and in their retail outlets they had flowers that created an appealing scent. Some trains in England have lavender pumped into the carriages to create a calming travel experience. Disney uses Popcorn and other smells to attract people to their services. One Business-to-Business client talked to us about the smell of the engines they sell and how many Customers like that.

2. The layout is critical to appealing to our natural tendencies.

We are naturally predisposed to follow a racetrack course of the supermarket. That means that our subconscious mind automatically sends us up and down the aisles at the grocery store. BusinessInsider.com just posted a great video that demonstrates this concept. Even when you are just looking for a couple of items, you will go up and down each aisle seeing many additional items that you can add to the trolley.

How you can apply it to your business:

Depending on what you have available you can arrange the same racetrack course. Another layout might make more sense for your product or service. Even in the Business-to-business environment when getting construction equipment serviced, what is the layout of the site? A spa might have a seating arrangement that brings you closer to the spa products for sale, naturally encouraging the patrons to browse. At Disneyland, some of the flagship rides empty you right into the store full of the ride’s theme merchandise, capitalizing on the happy feelings that park guests feel as they exit. Whatever the choice you are making, use the subconscious tendencies of your experience to appeal to your patrons.

3. Consider the eye level the buy level.

Grocery stores are notorious for how they place particular products on the shelves to maximize purchases. Just ask any mother about the layout of the cereal aisle. The most sugary and expensive brands are at eye level. The healthy items and more economic items are on the top and bottom shelves, respectively.

How you can apply this to your business:

If you have items that you want your customers to see first, design the display to draw their eye there. Put the inventory you want to move where they can see it. Undertake what we call a Customer Mirror. This process is where we act as a Customer. Walk the store yourself and note where your eyes look. These are the places where your customer’s eye also looks. Once you have identified the best real estate in the store that customers look at naturally, you can stock the store accordingly.

4. Divide and conquer.

Grocery stores know that most people are there for the essentials: milk, eggs and bread. In my post, “Engaging the Subconscious Shopper,” I mention a Nielson report that reports that milk drives consumers to the store 59% of the time. So do grocery stores put the milk right up front so you can get in and out quickly? Not a chance. The milk is in the back, so you walk by many other options before you get to it—giving you many chances to buy some other things that you didn’t even know you wanted when you left for the store.

How you can apply this to your business:

Unless you sell milk, this isn’t going to work for you. You probably have an item that most of your customers do want and make the trip to your store to get. Put it in a location that gives your customers the opportunity to see all the other inventory you have that they need to see, even if you only sell online. They will subconsciously process them on the way to the item they came for and like I mentioned in my post, pick up some of them along the way.

Customer experience is largely dependent on the subconscious mind and the emotional triggers that it evokes. Grocery stores understand this. Use this information to create a great experience for your customers and your bottom line.

What else can you do to create an experience like a grocery store in your retail experience? Please share your insight in the comments below.

If you enjoyed this post, you might be interested in the following blogs:

• What Does Your Experience Smell Like?
• Engaging the Subconscious Shopper
• Reverse Showrooming: How Retailers are Using Their Online Presence to Get You Back In Stores

Colin Shaw is the founder and CEO of Beyond Philosophy, one of the world’s first organizations devoted to customer experience. Colin is an international author offour best-selling books and an engaging keynote speaker. To read more from Colin on LinkedIn, connect with him by clicking the follow button above or below. If you would like to follow Beyond Philosophy click here

Follow Colin Shaw on Twitter @ColinShaw_CX

The post 4 Things We Can All Learn from a Retail Customer Experience appeared first on Beyond Philosophy.

But one area that I would hope that does not get overlooked in the strategic planning for a global expansion is customer experience. Keeping a one-size-fits-all approach to customer experience is a shortsighted strategy that can have enormous ramifications to your bottom line.

What’s the difference?

There is a famous story often told in Introduction to Marketing classes in the States that talk about a cultural miss for Detroit auto-maker, Chevrolet. They were launching the Chevy Nova in Mexico. They spent millions on marketing the car to disappointing results. The reason was simple: the name.

In Spanish, “no va” means “no go”…hardly the message you want for your car. This cautionary tale sets up the concept that you must know your audience. And this is true if you are talking about Paris, Texas, or Paris, France.

Different countries have different cultures. So it stands to reason that what is acceptable in one country is not acceptable everywhere. For example in a restaurant in England it is considered rude for a waiter to take only one person’s plate from the table when they have finished their meal. Instead, waiters wait for everyone to finish. In the US, however, that is the opposite with shift leaders everywhere telling their teams to clear away the empties about as soon as the diner drops their utensil.

But if there are differences about what is acceptable, there are also differences about what is expected as well. These differences can end up costing you money. Take the speed of deliveries as an example. If we were to ask what the expectations on delivery of a product, the answer you get in Kenya would be quite different from the one you get in the US. Therefore if you are a global company and just offer one standard for delivery speed, you could be adding costs needlessly to your operations by over delivering in other countries outside the US.

What McDonalds Could Teach us all about Adapting to Global Markets?

Some companies have adapted globally quite well. Take McDonalds for starters. They have adapted to global markets extremely well. They have more than 34,000 restaurants worldwide, in 118 different countries and serving nearly 69 million people each day. They know a thing or two about how to appeal to different cultures.

This success comes from an attention to what will work in a country and what won’t. This was apparent in their decision to introduce a vegetarian Big Mac last year in the Sikh holy city of Amritsar and also in a city home to the Hindu shrine of Vaishno Davi called Katra.  Both cities are located in India, a country that already serves chicken big macs in their other 250 stores. According to the McDonald’s spokesman, this move for vegetarian restaurants makes a lot of sense for these famous pilgrimage sites.

McDonalds has a long tradition of adapting to the needs of global markets. Much of the growth of McDonalds in the 90s occurred outside of the states. They did this by offering kosher burgers in an Israeli suburb of Jerusalem and “Halal” menus that complied with Islamic food preparation in Arab Countries.  Then, of course they opened the McSki-Thru restaurant in Lindvallen, a ski and snowboard community. McDonalds showed remarkable flexibility to local food preferences and preparation customs.

It’s slightly ironic that a company that built its reputation on serving standard fare no matter where you were when you ate at one has built its global brand on adapting to local cultures. So literally, if McDonalds can do it, any company can!

What You Should Consider

There are lots of subtle signals that play an important role in how your global customer will perceive your organization.

Disney is one of my heroes as it pertains to customer experience. They have created a standard by which many companies would be wise to measure themselves. But even though they are extremely good at creating a great customer experience here in the US, their foray into France proved less successful.

In an article dated June 1993, the New York Times talks about Euro Disney’s attempts to bolster weak attendance numbers by adding alcohol inside the park near Paris. They did so based on the feedback of German and English tourists who argued that wine was an important part of the French dining experience. This was an attempt to adapt to a European expectation and culture. It didn’t work, however.

The problem was that the French didn’t care of the “squeaky clean American images” that the park projected. Clearly, they subconsciously rejected the “American” quality of the park. Euro Disney continues to struggle financially to this day.

Clearly it is essential to consider Country cultures when rolling out your Customer Experience globally and not be arrogant to think everyone, everywhere is the same. Be sure when you enter a new market globally that you consult with experts on the culture so you can design an experience that will perform well with your local customers.

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