Pricing. It’s one of the most critical decisions your business will ever make, yet most people approach it like a finger-in-the-air guessing game. But what if you could tap into psychological principles to not just set prices, but make your customers feel they’re getting a great deal? That’s what this episode of The Intuitive Customer is all about.

Join Colin Shaw and Professor Ryan Hamilton as they break down the fascinating—and sometimes hilarious—world of psychological pricing. From late-night infomercials and $400 bath towels to popcorn buckets and outrageous anchoring techniques, we explore why pricing is more than numbers on a tag—it’s a story you tell your customers.

Along the way, Ryan reveals the secrets behind charm pricing, scarcity cues, and the “decoy effect,” while Colin shares how early mistakes taught him the importance of understanding customer perception. (Spoiler alert: guesswork is not a strategy.)

If you want to understand the psychology behind pricing—and how to use it to improve your bottom line—you’ll love this episode. But be warned: you might never look at a price tag the same way again.

Best Quote from the Episode: "The price isn’t just a number; it’s a conversation you’re having with your customer. And if you’re not telling the right story, someone else will." — Professor Ryan Hamilton

Key Takeaways (But You’ll Have to Tune In for the Full Insights!):

1. Anchoring: The "Big Daddy" of Pricing Why giving customers a frame of reference can make your prices seem more attractive.

2. Charm Pricing Still Works (But It’s Changing) $0.99 vs. $1.00—what’s really happening in the customer’s mind?

3. The Decoy Effect: Guide Them to the Right Choice How medium popcorns make large popcorns irresistible.

4. Scarcity and Social Proof: The FOMO Effect The subtle art of using “only 2 left!” without annoying your customers.

5. Price Elasticity: Know Who You’re Selling To Some customers care deeply about price changes—others don’t. Do you know the difference?

6. Signpost Items: First Impressions Matter Why your pricing on milk, batteries, or even AA batteries can shape brand perception.

7. Price Fairness: Handle with Care Overcharging can ruin trust, even if it makes short-term financial sense.

Why You Should Listen: Whether you’re pricing consulting services, running a retail store, or managing a SaaS product, this episode is packed with actionable insights that will make you rethink how you price—and how your customers perceive your value. Plus, it’s full of funny stories, practical advice, and a healthy dose of British-American banter.

Don’t just set prices. Shape perceptions. 

About the Hosts:

 Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience, Shaw is a sought-after keynote speaker. Follow Colin on LinkedIn.

 Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press Follow Ryan on LinkedIn.

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Episode Summary:

Are you evoking the right emotions in your customers, or are you unknowingly driving them away? In this episode, Colin Shaw and Professor Ryan Hamilton dive deep into the fascinating (and often overlooked) world of customer emotions. Emotions are at the heart of every customer experience—from frustration and neglect to trust and happiness, and they’re driving your bottom line.

Colin shares a story about his wife Lorraine’s coat-return drama and unpacks the emotional disaster it caused (hint: she’s not buying from that brand again). Meanwhile, Ryan explains why emotions are “squishy,” why there’s no universal list of emotions, and how organizations can still harness this powerful driver to build loyalty, advocacy, and revenue.

You’ll learn why emotions are always in play, how to identify the ones that drive value, and how to stop evoking the ones that destroy it. Colin and Ryan share practical tips, real-life examples, and the secret to aligning your team around the emotions that matter most.

This episode is a must-listen for anyone serious about improving their customer experience—and their bottom line.

Best Quote from the Episode:

"If I went to the CEO of a company and said, ‘Here’s the emotion your customers are feeling: frustration,’ do you think they’d say, ‘Yes, that’s exactly what we were going for’? Of course not! But if you’re not managing emotions, you’re leaving them to chance—and that’s costing you loyalty and revenue." — Colin Shaw.

Key Takeaways:

1. Emotions Drive Customer Loyalty and Spending Emotions aren’t just fluffy extras—they’re the bedrock of customer decision-making. Positive emotions like trust, care, and value build loyalty, while negative ones like frustration and neglect destroy it.
2. Most Companies Don’t Know What Emotions They’re Evoking If you ask your leadership team what emotions they’re trying to evoke, you’ll likely get different answers—or blank stares. That lack of alignment is a significant problem.
3. Triggers Are Key to Managing Emotions Emotions don’t happen by accident. They’re triggered by specific actions, processes, or interactions. Identify the triggers in your customer journey and intentionally design them to evoke positive emotions.
4. Practical Exercise: Emotion Safaris Take your team on a safari to experience your customer journey—or a competitor’s—firsthand. Then debrief: What emotions did they feel? What triggered them? Were those the right emotions?
5. The ROI of Emotions Customers who feel trust and care spend more and are more loyal. Customers who feel neglected cost you money. Managing emotions isn’t just good for customers; it’s good for your bottom line.

Why You Should Listen: This episode isn’t just about theory—it’s about practical steps you can take to evoke the right emotions in your customers and improve your business results. Colin and Ryan’s insights are backed by decades of research, real-world experience, and a healthy dose of humor.

If you’re ready to stop leaving customer emotions to chance and start managing them with intention, this episode is for you.

 

Resources Mentioned

Emotional Research: https://beyondphilosophy.com/consulting/emotional-signature/

The DNA of Customer Experience: How emotions drive value book: https://beyondphilosophy.com/books/

About the Hosts:

Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience, Shaw is a sought-after keynote speaker. Follow Colin on LinkedIn.

Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press Follow Ryan on LinkedIn.

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Episode Summary:

How can you create an environment where your team feels safe to speak their minds without fear of judgment or reprisal? In this episode, Colin Shaw and Professor Ryan Hamilton are joined by Gary Keogh, an expert in psychological safety and a former corporate leader turned coach. Together, they dive into why fostering openness in teams is more than just a buzzword—it’s the secret sauce for innovation, collaboration, and performance.

Gary shares eye-opening stories, practical examples, and proven methods to build trust within teams. Learn how even small behaviors like showing vulnerability, demonstrating curiosity, and expressing appreciation can unlock untapped potential in your organization.

If you’re a leader looking to bring out the best in your team—or just curious about why “none of us are as clever as all of us”—this episode is packed with actionable insights you can’t afford to miss.

Quote of the Episode

The moment you create a space where everyone feels safe to contribute, that’s when the magic happens.” — Gary Keogh

Key Takeaways:

1. Learn what it really means to create a workplace where people feel safe and eager to speak openly. 

2. It’s not about coddling your team or avoiding accountability.

3. Discover how leadership ego, self-censorship, and rigid cultural norms stifle collaboration—and what you can do about it.

4. Three practical ways to foster psychological safety: show vulnerability, practice curiosity, and express appreciation.

5. The Jeff Bezos Approach: Find out why Amazon’s founder speaks last in meetings and seeks out junior team members’ perspectives first 

Resources Mentioned

Contact Gary Keogh:  http://linkedin.com/in/gkeogh 

Website: https://gkexeccoaching.com/

 

About the Hosts:

Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience, Shaw is a sought-after keynote speaker. Follow Colin on LinkedIn.

Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press Follow Ryan on LinkedIn.

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Episode Summary

How do you set yourself apart in an ever-evolving professional landscape? In this episode of The Intuitive Customer, Colin Shaw and Ryan Hamilton dive deep into the career lessons they’ve learned over decades of navigating the twists and turns of professional life. This isn’t just another list of career tips—it's a roadmap for thriving in 2025 and beyond.

From mastering long-term planning to embracing the disruptive power of technology, Colin and Ryan unpack the strategies that make all the difference in building a fulfilling, forward-looking career. Plus, they share personal anecdotes (and a few laughs) about lessons learned the hard way.

Whether you’re just starting out, mid-career, or considering your next big move, this episode is packed with advice you won’t want to miss.

The Best Quote from the Episode

"If it’s going to be, it’s up to me. Don’t wait for someone else to drive your career—successful people create their own opportunities." – Colin Shaw

Key Takeaways

We’re only scratching the surface here—you’ll need to listen to the full episode for the stories and deeper insights behind these points!

1. Think Long-Term: The best careers are built with vision and intentionality. Treat every role as a stepping stone to something greater.

2. Leverage Technology: Generative AI and other innovations are reshaping the workforce. Learn to harness these changes instead of fearing them.

3. Understand Your Strengths: Self-awareness is key—focus on what you’re naturally great at, and let that guide your career decisions.

4. Build a Reputation That Lasts: Your reputation is your greatest currency. What do you want to be known for?

5. Deliver, Deliver, Deliver: At the end of the day, results speak louder than words. Always follow through and exceed expectations.

Why You Need to Tune In

Sure, you could take the lessons at face value, but what makes this episode unmissable are the stories behind the advice. From Colin’s father’s game-changing advice about “learning your boss’s job” to Ryan’s humorous but insightful realization about his dislike for managing people, these are the kinds of lessons you’ll want to hear straight from the source.

Plus, Colin and Ryan’s banter, humor, and candid reflections make this episode not just valuable, but downright enjoyable. You might even come away with a new mantra for your career—and a laugh or two!

🎧 Listen now and take the first step toward making 2025 your most successful year yet!

About the Hosts:

Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience, Shaw is a sought-after keynote speaker. Follow Colin on LinkedIn.

Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press Follow Ryan on LinkedIn.

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Episode Summary

In this episode of The Intuitive Customer, Colin Shaw and Professor Ryan Hamilton delve into the fascinating world of customer habits. Colin shares his recent experiences shopping at Publix, Aldi, and Whole Foods, uncovering how deeply ingrained habits shape our decisions as customers. The discussion explores the psychology behind habit formation, the challenges businesses face when trying to change customer routines, and the critical role of segmentation in addressing diverse customer needs. From grocery stores to TSA lines and even Apple’s onboarding strategy, this episode highlights actionable insights for businesses looking to influence customer behavior effectively.

Quote of the Episode

"Habits aren't unbreakable chains; they're shortcuts our brains take to save effort. If businesses want customers to change, they need to guide them gently and reward the new behavior." 

Key Takeaways

1. The Habit Loop Habits consist of three components: cue, routine, and reward. Businesses need to understand these elements to create or change customer habits effectively.

2. Transition Requires Support Customers resist change when new experiences are disorienting or unclear. Offering onboarding tools, clear signage, or guidance (like Apple’s tutorials or TSA’s segmented lines) can ease the transition.

3. Segment Rewards Customers value different rewards. Some prioritize savings, while others value time or convenience. Understanding and tailoring offerings to these preferences can make all the difference.

4. Habits vs. Exploration While habits streamline decision-making, they can inhibit discovery. Striking a balance—like Amazon’s recommendation engine—allows businesses to support habitual purchases while encouraging new ones.

5. The Power of Familiarity Familiarity offers comfort and efficiency, making it a strong motivator for customers. Businesses need to weigh the risks of disrupting established habits against the potential benefits of change.

About the Hosts:

Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience, Shaw is a sought-after keynote speaker. Follow Colin on LinkedIn.

Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press Follow Ryan on LinkedIn.

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If you enjoyed this episode, don’t forget to leave us a review and share it with your network. For more insights and resources, visit Beyond Philosophy and subscribe to never miss an episode of The Intuitive Customer!

Episode Summary

In this episode of The Intuitive Customer, Colin Shaw and Ryan Hamilton dive into the predictions shaping 2025 and their implications for customer experience. From economic uncertainty and its emotional impacts to the rise of AI in search behavior, they explore how these trends will influence customer decisions and business strategies. The conversation also delves into the unintended consequences of tariffs, the challenges of AI implementation, and the importance of maintaining a customer-centric culture amidst technological advancements.

Quote of the Episode

“Perception is reality, especially in customer experience. Customers’ feelings about the broader world—not just your product—shape their choices.”

Key Takeaways

1. Economic Uncertainty Is Emotional: Confidence, a powerful emotion, drives customer behavior. Economic stability is less about the numbers and more about what customers feel about the economy.\n
2. Tariffs and Customer Choices: Tariffs create unintended consequences for customer experience, from higher costs to reduced competition and choice. Policies that seem disconnected from customers often have profound impacts.\n
3. The Shift in Search Behavior: AI tools like ChatGPT are reshaping how customers find answers, creating new challenges and opportunities for businesses to differentiate themselves in an AI-driven landscape.\n
4. AI Projects Must Prove Value: Without clear goals and success metrics, AI initiatives risk failure. Businesses must align AI with tangible improvements in customer experience.\n
5. Customer-Centricity Trumps Technology: A customer-first culture remains essential. Advanced technologies, including AI, will only deliver value when built on a foundation of empathy and understanding.

Links Mentioned in the Episode

• Forbes article by Adrian Swincoe: https://www.forbes.com/sites/adrianswinscoe/2024/12/17/15-customer-experience-predictions-for-2025/ 

About the Hosts:

Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience, Shaw is a sought-after keynote speaker. Follow Colin on LinkedIn.

 

Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press Follow Ryan on LinkedIn.

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Quote of the Episode

"If something feels off, it probably is. Trust your instincts and push for clarity—because informed customers are empowered customers."

Episode Summary

In this episode of The Intuitive Customer, Colin Shaw and Professor Ryan Hamilton discuss the all-too-common experience of feeling ripped off. Drawing on Colin’s personal experiences with home repairs and unexpected costs, they delve into the anatomy of being taken advantage of as a customer. Together, they explore the power dynamics, manipulative tactics, and psychological cues that underpin these interactions.

From high-pressure situations to unnecessary upsells, the hosts provide insights into recognizing when you’re being overcharged and how to protect yourself. Along the way, they share actionable tips for consumers and lessons businesses can learn to build trust and transparency with their customers.

Key Takeaways

1. Red Flags of Being Ripped Off:

   • Urgency and High Demand: When time is short, and demand is high, you’re more likely to encounter inflated prices.

   • Irrelevant Questions: Excessive or unrelated inquiries can signal attempts to upsell or gauge your lack of expertise.

   • Upselling Early: If a provider pushes additional services before addressing your core issue, proceed cautiously.

   • Manipulative Sales Tactics: Techniques like “calling the manager” or creating false scarcity are designed to wear you down.

   • Unease: Trust your gut—if something feels off, it probably is.

2. Power Dynamics and Information Gaps:

   • Service providers often have the upper hand in terms of expertise and resources, which can lead to exploitation.

   • Customers should ask detailed questions, break down costs, and research to close the information gap.

3. Lessons for Businesses:

   • Transparency and honesty foster long-term trust and customer loyalty.

   • While exploiting urgency or knowledge gaps may yield short-term gains, it damages reputation and drives customers away.

4. Practical Tips for Consumers:

   • Avoid rushed decisions and gather multiple quotes when possible.

   • Demand clarity on costs and don’t hesitate to negotiate.

   • Recognize manipulative tactics and assert your rights as a customer.

About the Hosts:

Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience, Shaw is a sought-after keynote speaker. Follow Colin on LinkedIn.

Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press Follow Ryan on LinkedIn.

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Episode Summary:

In this special end-of-year episode, Colin Shaw and Professor Ryan Hamilton reflect on 2024, sharing personal and professional lessons learned throughout the year. The conversation dives into themes of resilience in both life and customer experience, the vital role of community, the need for balance, and the hype surrounding AI. 

Key Takeaways:

• Resilience Matters: Colin discusses how personal resilience during a home crisis parallels the resilience required in customer experience. He explains how understanding customers' emotional journeys (e.g., the grief cycle) can improve support and satisfaction.

• Community is Key: Both hosts underscore how community support during tough times can be mirrored in the business world, where fostering a sense of community can strengthen customer loyalty.

• Communication & Transparency: Ryan shares insights on the role of clear communication in managing customer expectations and protecting processes. It’s not just about better ideas; it’s also about maintaining trust.

• Balanced Approach: Colin and Ryan advocate for a balanced customer experience strategy that combines quantitative measures with a focus on emotional and behavioral insights, and a mix of human interaction with technology.

• AI and the Hype Trap: Colin warns against getting swept up in the AI hype. While AI holds great promise, organizations should prioritize strategic, integrated implementations over rushing to adopt the latest tools

About the Hosts:

Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience; Shaw is a sought-after keynote speaker.

 Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press. Follow Ryan on LinkedIn.

Subscribe & Follow

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We are frustrated. Despite years of effort across industries, customer satisfaction has only seen marginal improvement since the 1990s.

By marginal improvement, we mean it went up four points. That’s right, four.

This stagnation suggests a need for deeper cultural and operational changes to prioritize customer experiences truly. 

Our discussion in this episode revolves around four key customer-centricity levels: Naive, Transactional, Enlightened, and Natural. These stages represent an organization's maturity in focusing on customers, from the least to the most advanced. 

1. Naive Organizations focus internally and lack regard for customer needs, often viewing the customer as secondary to operational goals.
2. Transactional Organizations acknowledge the importance of the customer but treat interactions as isolated transactions, usually emphasizing efficiency over empathy.
3. Enlightened Organizations offer a more cohesive and emotionally engaging experience, understanding that customers seek meaningful interactions.
4. Natural Organizations are the pinnacle of customer-centricity, with cultures that fully align employee and customer experiences. These companies anticipate customer needs and prioritize creating memorable, personalized moments

Organizations are encouraged to evaluate where they stand on this spectrum and start implementing changes in nine core areas: people, customer strategy, systems, measurement, channels, expectations, marketing and branding, processes, and leadership. Embracing these changes may require a cultural overhaul, but the rewards include increased customer loyalty and satisfaction.

In this episode, we dive into the concept of customer centricity and explore the journey organizations must take to shift their focus more closely to the customer. The journey from Naive to Natural isn’t easy, but it is essential for brands that want to build genuine, long-term customer relationships. 

Here are a few other key takeaways from the discussion you will learn:

• Customer centricity is not just about enthusiastic service—it requires a deep cultural shift within the organization.

• Organizations must balance rational, efficiency-focused goals with emotional aspects to create a holistic customer experience.

• Success depends on how well leadership integrates customer-focused values into every level of the organization.

• The nine organizational areas identified help companies assess and improve their customer focus.

• True customer-centric brands are often those that consider both customer and employee experiences as interconnected.

• Moving towards "Natural" status requires significant effort and incremental improvements rather than a one-time overhaul.

 

Growth is essential for businesses. However, new customers with varying needs, preferences, and identities often accompany growth. Worse, these new customers can annoy or alienate your current customers.

So, how do you grow without making your current business blow?

Today, we explore the central challenge of growth: expanding your customer base without sparking conflicts between different customer segments. Ryan's new book, The Growth Dilemma, which Ryan co-authored with Wharton Senior Lecturer in Marketing Annie Wilson, Ph.D., addresses this dynamic in-depth, and we discuss how companies can better manage these conflicts to keep all customers satisfied and engaged.

As brands grow, they tend to attract diverse customer segments with unique expectations and behavior. This diversity can create tensions between groups, especially when one segment's actions or values clash with another's. 

For instance, a brand known for its exclusivity may see conflict when a more mainstream audience starts to adopt it, or a company that appeals to one political ideology may face backlash when it attracts customers from an opposing one.

We delve into the four main types of conflict that can arise between customer segments and explore solutions for each. For example, these brands dealt with some of them when:

• Patagonia faced a brand image shift when corporate buyers began over-associating the brand with Wall Street, diverging from Patagonia's environmental ethos. The company responded by limiting corporate orders, thereby preserving its original image.

• Younger users leave Facebook because their parents' generation heavily uses it. Exclusivity can be key to maintaining engagement from specific age groups or communities on social platforms.

• New Balance once faced a backlash after a policy stance was misinterpreted by extremist groups, forcing the brand to distance itself from these associations publicly.

Ultimately, understanding and managing these potential conflicts requires brands to identify sources of friction early on and employ various strategies to keep segments separate when needed. Segmenting offerings, using sub-brands, or creating distinct product lines are all ways to cater to different groups without diluting brand identity or customer satisfaction. 

In this episode, we also offer actionable advice on navigating the complex terrain of customer segments and brand management and setting up companies for smoother, more inclusive growth. Whether you're a business leader or a marketer, this episode is packed with insights into balancing growth with customer harmony, ensuring each segment feels valued without alienating others.

This episode also includes ways to:

• Recognize the importance of managing inter-customer relationships to foster sustainable growth.

• Understand how Functional Conflicts often arise in omnichannel setups and ways to resolve them.

• Learn about Brand Image Conflicts and how brands can address image tensions, as Patagonia did.

• Distinguish between Identity and Ideological Conflicts and why one often influences customer group dynamics more than the other.

• Gain insights into using segmentation strategies, like sub-brands or distinct service channels, to reduce conflict.

• Discover how a clear brand identity can attract and repel certain customers and why that might benefit or hinder growth.

Be the first to hear about pre-order and launch dates and invitations to exclusive book launch events for The Growth Dilemma, published by Harvard Business Review Press!

Deborah has a pickle. She is considering implementing a Loyalty Scheme but isn't sure when and how to do so. She thought we could help. 

We can help. The first question, then, is easy. Now. These things work. They don't create real loyalty, but they get people to keep buying from you, giving you more chances to earn loyalty.

It's the second question, how, that's a little trickier. 

Many companies create these programs to foster loyalty, but often, they work more as reward systems, encouraging repeat transactions rather than building emotional attachment.

For example, although frequent flyer points, like Delta's SkyMiles, incentivize repeat bookings, they don't necessarily create genuine loyalty. Loyalty, we argue, is a deeply emotional connection rather than just a series of repeat transactions.

We explore the psychological principles behind why customers participate in rewards programs and why they might hoard rewards rather than redeem them. A concept called Medium Maximization explains why people often "save" points or miles, viewing them as a bridge to future rewards and experiencing reluctance to part with them. This phenomenon works in favor of companies, as it increases customer engagement without necessarily incurring a cost. 

Additionally, the Goal Gradient Hypothesis illustrates how people accelerate their efforts toward a reward as they approach it, which is why punch-card systems, for example, are so effective.

While rewards programs have significant benefits, they can also have downsides. Complex or restrictive redemption policies can damage the customer experience, as can the use of extrinsic motivations that may unintentionally reduce intrinsic motivations. 

For instance, when a daycare chain imposed a fine on late pickups, late arrivals increased as parents viewed it as a trade-off rather than a rule. Companies should, therefore, be cautious about unintentionally undermining genuine, behavior-based loyalty with overly complicated or restrictive rewards systems.

In this episode, we discuss customer loyalty programs' true purpose and impact. Ultimately, we recommend keeping loyalty programs simple and transparent. Avoid blackout dates or complicated redemption processes, as these can frustrate customers and reduce the program's value. At their core, loyalty schemes are tools to encourage spending rather than create loyalty, so Deborah—and you—should design them with that goal in mind.

Additional Takeaways to Listen for In This Episode:

• How extrinsic rewards, like points, can decrease intrinsic motivation and affect customer behaviors.

• The importance of aligning a rewards program with customer behavior patterns and preferences.

• How Idiosyncratic Fit influences customers to engage more deeply in programs where they feel they have an advantage.

• Examples of how poorly designed loyalty schemes can backfire and damage customer relationships.

• The pros and cons of different reward types, like points versus cashback, and how this impacts customer satisfaction.

• Understanding competitive rewards programs can help you refine your offering to stand out.