CX Design Wins A Nobel Prize

In case you missed it, Richard Thaler won the Nobel Prize in Economics. He’s a well-known behavioral economist and author of the popular book Nudge. Thaler often collaborated with another behavioral economist (and one of my favorite economists of all time), Daniel Kahneman, who won a Nobel Prize in 2002.

You may have seen Thaler in this scene from The Big Short where he and Selena Gomez explain a financial instrument called a synthetic collateralized debt obligation (CDO). [Note: there’s some foul language].

So what does this have to do with CX design?

Thaler applied behavioral economics to government interactions with citizens. Through this citizen experience design, he was able to raise the number of organ donors, increase the level of retirement savings, and improve response rates to automotive registration bills among other things.

Thaler’s work demonstrated that experience design can’t assume that humans behave in a rational manner, it must take into account that people make most of their decisions using intuitive thinking.

That’s why behavioral economics is the foundation for what we call Design for Real People, a component of Customer Connectedness. If you’re doing any experience design, then you need to understand how people make decisions and how they respond emotionally to your actions.

The bottom line: Behavioral economics is a foundation for good CX design.

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I am a customer experience transformist, helping large organizations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. I am also a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Simply put, I am passionate about spotting emerging best practices and helping companies master them. And, as many people know, I love to speak about these topics in almost any forum. My “title” is Managing Partner of the Temkin Group, a customer experience research and consulting firm that helps organizations become more customer-centric. Our goal is simple: accelerate the path to delighting customers. I am also the co-founder and Emeritus Chair of the Customer Experience Professionals Association (CXPA.org), a non-profit organization dedicated to the success of CX professionals.

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