Nudging customers to book services and attend their ladies salon appointments

The goal of the project was to encourage customers to make bookings after calling & improve attendances of all bookings made.
Behavioral Economics
Marketing
Customer Experience
Client
Noona Beauty
Date
June 15, 2023
Role
Behavioral Consultant
Website
https://noonabeauty.ae
Transforming Businesses

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Our services have helped numerous companies achieve significant improvements in customer satisfaction, revenue growth, operational efficiency, employee productivity, and customer retention. With a track record of delivering results, we are committed to transforming businesses.

Behavioral Biases

4

Used to improve the KPIs of the ladies salon

Cancellations & No Show

-13%

In a month we decreased cancellations and no-shows by 13%

Sales rate

18%

Over a month we sent the offer message and got a 17% response rate and an 18% sale rate.

Quick Facts

Noona Beauty Salon is one of the many beauty outlets available for customers in JVC.

Noona Beauty had a problem that was two fold, the first problem was that potential customers were calling the salon but not making an appointment. The second part of the problem was that new and returning customers were not showing up for their appointments. Challenges included:

  1. Customers are calling in but do not make a booking.
  2. Customers who have booked do not attend their appointment.

We looked at the friction points that customers encountered that prevented them from taking the desired action.Customers who called in but never made an appointment experience choice overload.Customers who do not attend their appointments are unaware that there are consequences to their actions for others.

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Context, Approach & Methodology

  • Noona Beauty had a problem that was two fold, the first problem was that potential customers were calling the salon but not making an appointment. The second part of the problem was that new and returning customers were not showing up for their appointments.
  • We looked at all 7 steps of the journey and identified the friction points that existed during the selection phase and the purchase phase were the biggest barriers to the desired behavior.

The Groundwork

  • In the selection phase, customers were overwhelmed by the number of choices they had to make and during the purchase phase, customers were not committed to attending their appointments and were unaware of the consequences.
  • We considered a variety of touch points but ultimately decided that our intervention would be best received via WhatsApp as it is cost effective and easy to implement. We optimised existing WhatsApp messages and created new messages using behavioural economic principles.
  • To alleviate the choice overload we sent customers a timely message with offers that would incentivise the customer to take action. We adapted previous reminder messaging that made the consequences of cancelling salient and prompted an action from the customer.
  • For the offer message we reduced choice overload by using the decoy effect which reduced the number of choices. For the message post booking, we sent well timed reminders that used commitment devices.

The Results

  • After a month of testing messages with customers we found that the offer messages had a 17% response rate and an 18% sale conversion on the responses. Going forward we will be optimising the offers and iterating. We found that the commitment device significantly decreased the cancellation rate by 13%.
  • Increased Sales
    • During the month of testing sales on average increased by 49%.
  • Decreased cancellation rate
    • During the month of testing cancellation rate decreased by 13%.
  • Data to inform iteration
    • Based off the data we have collected we can iterate our messaging to further improve results.

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FAQs

Few questions we frequently encounter in regards to customer experience consulting

What is customer experience consulting?

Customer experience consulting involves helping businesses improve every interaction a customer has with their brand. Consultants analyze customer journeys, identify pain points, and implement strategies to enhance satisfaction, loyalty, and overall customer experience.

Why is customer centricity important for businesses?

Customer centricity focuses on creating positive customer experiences at every touchpoint. It is crucial because it leads to higher customer satisfaction, loyalty, and retention, ultimately driving business growth and profitability.

How can customer experience consulting benefit my business?

Customer experience consulting can benefit your business by providing expert insights into customer behavior, identifying areas for improvement, and developing tailored strategies to enhance customer satisfaction, increase loyalty, and boost revenue.

What are the key components of a successful customer experience strategy?

A successful customer experience strategy includes understanding customer needs and preferences, mapping the customer journey, implementing personalized interactions, gathering and analyzing feedback, and continuously improving processes based on data-driven insights.

How does customer feedback play a role in customer centricity?

Customer feedback is vital for customer centricity as it provides direct insights into customer experiences and expectations. By collecting and analyzing feedback, businesses can make informed decisions to enhance their services and products, leading to better customer satisfaction.

What tools and technologies are used in customer experience consulting?

Tools and technologies used in customer experience consulting include customer relationship management (CRM) systems, customer feedback platforms, journey mapping tools, analytics software, and artificial intelligence (AI) for personalized experiences.

How can businesses measure the success of their customer experience initiatives?

Businesses can measure the success of their customer experience initiatives through key performance indicators (KPIs) such as Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), Customer Effort Score (CES), customer retention rates, and revenue growth.

What are common challenges in implementing a customer-centric culture?

Common challenges in implementing a customer-centric culture include resistance to change, lack of alignment across departments, inadequate customer data, insufficient training for employees, and difficulty in measuring and analyzing customer experience metrics.

How can personalization improve customer experience?

Personalization can improve customer experience by tailoring interactions, offers, and communications to individual customer preferences and behaviors. This makes customers feel valued and understood, leading to increased satisfaction and loyalty.

What role does employee training play in customer experience consulting?

Employee training is crucial in customer experience consulting as it equips staff with the skills and knowledge to deliver exceptional service. Training programs focus on understanding customer needs, effective communication, problem-solving, and fostering a customer-centric mindset.

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