Customer Intelligence: Why People Make Bad Decisions
‘Anything that can go wrong, will go wrong’ — Murphy’s Law
The decisions we make everyday have more impact in our lives than almost any other thing. This applies to businesses as well as their customer. It is what distinguishes the business from competitors, informs business strategy and significantly influences customer’s purchase behaviour. Everyone has to make a decision at some point, but where most people get stuck is making the right one. The inference from Murphy’s law means we are more likely to make bad decisions than good. So how can we tip the scale in our favour and become better in making decisions?
One of the best ways to make good choices is to avoid making less bad ones. This is more difficult than you might think.
We accept everything we see on face value
This is one truth that the media industry has exploited for years. Psychologist Daniel Gilbert explains that one of the reasons why we make bad decisions is because human beings think an event is more probable because of the speed at which it comes mind. For example, in a study where people were asked to the most common causes of death in the world, most people over estimated tornado and fireworks as major causes of death while significantly under-estimating drowning and asthma. This is because we often see more headline stories of natural disasters like tornadoes and hurricanes than that of people dying of asthma.
This can also be referred to as availability heuristic which is when we assume that the examples that easily come to mind are the most prevalent or important.
What to do
It is very common for a lot of people to have misconceptions about themselves. Thoughts like being rational or logical are most times false. The first step is being aware of these kinds of errors in decision making when approaching customers. Never take it personal. Make every effort to know every detail about your customer and the product you are selling. How does the product meet customer needs. This is why having a customer persona and proper planning of customer’s journey is very important. The information makes you more of a professional and better in dealing with objections.
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