Hacking The Perception Of Customer Satisfaction

Welcome to another edition of "Mind to Market," where I, drawing from my observations and experiences in the field of marketing, embark on a journey to bring structure to the intricacies of the human mind. My goal? To enhance our ability to make marketing decisions that truly resonate. In this edition, we'll delve into the powerful concept of the ROI Feedback Loop and how it can revolutionize your approach to marketing.

In the ever-evolving world of business, one constant remains—increasing customer satisfaction is paramount to boosting customer lifetime value and advocacy. Traditionally, one might assume that offering a superior product or service automatically leads to higher customer satisfaction. The formula seems simple: Customer Satisfaction = Product Quality - Customer Expectation (Coefficient Of Customer Satisfaction). However, as we navigate the complexities of consumer behavior, we soon realize that this equation is far from complete.

Let's illustrate this with an example.

Before the advent of vacuum cleaners, the statistics painted a rosy picture. It was more efficient and effective than existing solutions, making it seemingly foolproof. But, reality took a different turn. Innovators and Early Adopters bought it, yet satisfaction remained elusive. The question loomed—what went wrong? (Stay tuned for the answer.)

Here's where the "Perceived" customer satisfaction concept comes into play. It acknowledges the enigma of human psychology—sometimes, we don't fully understand what's happening in consumers' minds.

Following the vacuum cleaner's initial flop, in-depth focus group surveys were conducted. The revelation was fascinating. People found satisfaction in witnessing the dust pile up as they swept the floor. It created a sense of accomplishment. The problem with the vacuum cleaner was that it couldn't provide this visual satisfaction as the dust remained hidden.

The solution was deceptively simple. The design team added a transparent tube at the beginning of the vacuum cleaner pipe. This allowed users to witness a miniature cyclone of dust passing through the transparent tube. The effect was transformative. The product was relaunched and became a massive success, even appealing to late adopters.

I've coined this phenomenon the "ROI Feedback Loop." While returns on investment often aren't immediate, it's crucial to incorporate features or facilities where customers can sense the immediate impact of their actions in terms of ROI. The shorter the feedback loop between an investment and the perception of its return, the higher the customer satisfaction.

Now, let's link this back to the central theme of "Mind to Market." In our quest to decode the human mind's intricacies, the ROI Feedback Loop is a revelation. It shows us that effective marketing goes beyond just delivering a quality product or service. It hinges on understanding the psychological triggers that drive consumer behavior. It's about creating products and marketing campaigns that allow customers to experience the impact of their choices in real-time. This is where the bridge between human psychology and marketing strategy is built.

In conclusion, the ROI Feedback Loop aligns perfectly with the principles discussed in the book "Hooked." It also resonates with the wisdom of marketing experts like Roy Sutherland of Ogilvy, who emphasize the importance of connecting with consumers on a psychological level.

If you have read this article till the end, I humbly request you to share your first thoughts on it, because it is the only source of motivation I have.