Behavioral Economics
7
 minute read

Normalization of Deviance: Accepting Small Deviations as Normal

Published on
August 28, 2024

1. Introduction to Normalization of Deviance

Imagine a customer who subscribes to a meal delivery service that occasionally delivers meals late or with missing ingredients. At first, the customer is frustrated, but as these deviations become more frequent, they start to accept these flaws as normal, lowering their expectations. This is an example of Normalization of Deviance.

Normalization of Deviance is a cognitive bias where people gradually accept small deviations from standard practices or expectations as normal, especially when these deviations do not immediately lead to negative consequences. Over time, what was once considered unacceptable becomes the new norm. Understanding Normalization of Deviance is crucial for enhancing Customer Experience (CX) because it helps businesses recognize when declining standards may be affecting customer satisfaction and loyalty.

2. Understanding the Bias

  • Explanation: Normalization of Deviance occurs when repeated exposure to minor deviations or errors without immediate negative outcomes causes people to accept these deviations as normal. This bias often arises in complex systems where deviations are subtle and do not appear to cause immediate harm. For instance, a company may gradually accept lower quality control standards because initial lapses did not result in customer complaints or significant losses.
  • Psychological Mechanisms: This bias is driven by a combination of complacency and cognitive dissonance. When people repeatedly encounter minor deviations without experiencing negative consequences, they may become complacent, believing that the deviations are harmless or even normal. Cognitive dissonance also plays a role, as individuals rationalize these deviations to align with their perceptions of normalcy or acceptability, reducing the discomfort of recognizing a lapse in standards.
  • Impact on Customer Behavior and Decision-Making: Customers influenced by Normalization of Deviance may lower their expectations over time, becoming less likely to complain about issues or seek alternatives. This can lead to decreased engagement, reduced loyalty, and increased tolerance for subpar experiences, ultimately affecting a brand’s reputation and customer retention.

Impact on CX: Normalization of Deviance can significantly impact CX by influencing how customers perceive and interact with brands, particularly when their decisions are guided by lowered expectations and acceptance of substandard experiences.

  • Example 1: A customer might continue to shop at a store with poor customer service because they have come to expect and accept the lower standard over time.
  • Example 2: Another customer could keep using a subscription service with frequent technical glitches, rationalizing that these issues are a normal part of the experience.

Impact on Marketing: In marketing, understanding Normalization of Deviance allows businesses to create strategies that address declining standards and expectations, guiding customer perceptions and decision-making towards higher engagement and satisfaction.

  • Example 1: A marketing campaign that emphasizes a return to quality and standards can help counteract Normalization of Deviance by reminding customers of the brand’s commitment to excellence.
  • Example 2: Offering guarantees or quality assurances can further mitigate Normalization of Deviance by reassuring customers that the brand values their satisfaction and is committed to maintaining high standards.

3. How to Identify Normalization of Deviance

To identify the impact of Normalization of Deviance, businesses should track and analyze customer feedback, surveys, and behavior related to their tolerance for deviations or lowered standards. Implementing A/B testing can also help understand how different approaches to highlighting quality and consistency influence customer satisfaction and decision-making.

  • Surveys and Feedback Analysis: Conduct surveys asking customers about their experiences with service or product deviations. For example:
    • "Have you noticed any changes in the quality or standards of our products/services?"
    • "How do you feel about minor deviations from your expectations, and how do they affect your overall satisfaction?"
  • Observations: Observe customer interactions and feedback to identify patterns where Normalization of Deviance influences behavior, particularly in situations where customers’ decisions are noticeably driven by acceptance of lowered standards.
  • Behavior Tracking: Use analytics to track customer behavior and identify trends where Normalization of Deviance drives engagement, conversions, or loyalty. Monitor metrics such as customer retention rates, satisfaction scores related to perceived quality and consistency, and response rates to feedback about deviations.
  • A/B Testing: Implement A/B testing to tailor strategies that address Normalization of Deviance. For example:
    • Highlighting Quality Standards: Test the impact of messaging that emphasizes high quality and consistency, understanding how this influences customer satisfaction and decision-making.
    • Encouraging Customer Feedback: Test the effectiveness of promoting channels for customer feedback and concerns about deviations, helping customers feel more engaged and valued.

4. The Impact of Normalization of Deviance on the Customer Journey

  • Research Stage: During the research stage, customers influenced by Normalization of Deviance may overlook minor deviations or quality issues when evaluating options, assuming that these are normal or acceptable in the industry.
  • Exploration Stage: In this stage, Normalization of Deviance can guide customers as they evaluate options, with those that have subtle deviations or lower standards being more likely to be tolerated or overlooked.
  • Selection Stage: During the selection phase, customers may make their final decision based on the perceived acceptance of minor deviations, choosing what seems most familiar or least likely to deviate significantly from their expectations.
  • Loyalty Stage: Post-purchase, Normalization of Deviance can influence customer satisfaction and loyalty, as customers who feel their decision-making process was validated by accepting deviations may experience a gradual decline in expectations, potentially impacting their future engagement with the brand.

5. Challenges Normalization of Deviance Can Help Overcome

  • Improving Customer Expectations: Understanding Normalization of Deviance helps businesses create strategies that improve customer expectations by emphasizing high quality and consistency, reducing the likelihood of customers feeling complacent or accepting of lowered standards.
  • Enhancing Customer Engagement: By recognizing this bias, businesses can develop marketing materials and customer experiences that promote engagement through clear, consistent messaging about quality and standards, helping customers feel more valued and understood.
  • Building Trust through Transparency and Accountability: Leveraging Normalization of Deviance can build trust by creating experiences that emphasize transparency and accountability, ensuring that customers feel confident in their choices based on a strong relationship with the brand.
  • Encouraging Exploration through Reassurance of Quality: Creating experiences that account for Normalization of Deviance can enhance exploration by ensuring that customers feel reassured and confident in the quality and standards of new products or services, reducing the likelihood of dissatisfaction or regret.

6. Other Biases That Normalization of Deviance Can Work With or Help Overcome

  • Enhancing:
    • Compliance Bias: Normalization of Deviance can enhance Compliance Bias, where customers’ perceptions and decisions are heavily influenced by a tendency to conform to what is perceived as acceptable or normal, reinforcing the acceptance of lowered standards.
    • Anchoring Effect: Customers may use Normalization of Deviance in conjunction with the Anchoring Effect, where their perceptions of a product or service are heavily influenced by initial expectations or experiences, leading to decisions based on a desire to maintain perceived consistency.
  • Helping Overcome:
    • Confirmation Bias: By addressing Normalization of Deviance, businesses can help reduce Confirmation Bias, where customers give undue weight to their existing beliefs or expectations, encouraging them to consider a more balanced view based on objective evaluation and diverse experiences.
    • Status Quo Bias: For customers prone to Status Quo Bias, understanding Normalization of Deviance can help them avoid making decisions based solely on the desire to maintain the current state, leading to more accurate and balanced decision-making.

7. Industry-Specific Applications of Normalization of Deviance

  • E-commerce: Online retailers can address Normalization of Deviance by emphasizing quality control and consistency, ensuring that customers do not accept subpar products or services as normal.
  • Healthcare: Healthcare providers can address Normalization of Deviance by maintaining high standards of care and communication, helping patients feel confident and engaged in their treatment.
  • Financial Services: Financial institutions can address Normalization of Deviance by providing consistent, high-quality service and transparent communication, encouraging customers to remain engaged and loyal.
  • Technology: Tech companies can address Normalization of Deviance by ensuring that new features or updates meet high standards of quality and reliability, helping customers feel confident in their choices.
  • Real Estate: Real estate agents can address Normalization of Deviance by clearly communicating the quality and standards of properties, helping clients feel confident in their search and decision-making process.
  • Education: Educational institutions can address Normalization of Deviance by maintaining high standards of teaching and resources, encouraging students to engage more actively with their education.
  • Hospitality: Hotels can address Normalization of Deviance by maintaining consistent service standards and addressing deviations promptly, helping guests feel confident and engaged with the property.
  • Telecommunications: Service providers can address Normalization of Deviance by ensuring consistent service quality and addressing issues proactively, encouraging customers to remain engaged and loyal.
  • Free Zones: Free zones can address Normalization of Deviance by maintaining high standards of business support and services, encouraging companies to engage more actively within the zone.
  • Banking: Banks can address Normalization of Deviance by providing consistent, high-quality service and clear communication about changes or updates, encouraging customers to remain engaged with their financial options.

8. Case Studies and Examples

  • Southwest Airlines: Southwest Airlines leverages strategies to combat Normalization of Deviance by maintaining consistent service standards and addressing deviations promptly, ensuring that customers are aware of the airline’s commitment to quality and reliability.
  • Zappos: Zappos combats Normalization of Deviance by emphasizing a customer-first approach and addressing service deviations quickly, ensuring that customers are aware of the company’s commitment to quality and satisfaction.
  • Toyota: Toyota mitigates Normalization of Deviance by maintaining high standards of quality control and addressing any deviations promptly, ensuring that customers are aware of the company’s commitment to excellence.

9. So What?

Understanding Normalization of Deviance is crucial for businesses looking to enhance their Customer Experience (CX) strategies. By recognizing and addressing this bias, companies can create environments and experiences that emphasize high quality and consistency, helping customers feel more confident and satisfied with their choices. This approach helps build trust, validate customer choices, and improve overall customer experience.

Incorporating strategies to address Normalization of Deviance into marketing, product design, and customer service can significantly improve customer perceptions and interactions. By understanding and leveraging this phenomenon, businesses can create a more engaging and satisfying CX, ultimately driving better business outcomes.

Moreover, understanding and applying behavioral economics principles, such as Normalization of Deviance, allows businesses to craft experiences that resonate deeply with customers, helping them make choices that feel both informed and confident.

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Behavioral Economics
Aslan Patov
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