1. Introduction to Self-Discrepancy Theory

Picture a situation where someone feels the pressure to live up to the expectations of others, while also striving to become the person they ideally want to be. This internal conflict between who they are, who they want to be, and who they think they should be is the essence of Self-Discrepancy Theory.

Self-Discrepancy Theory explains how differences between an individual's actual self (how they see themselves), ideal self (how they would like to be), and ought self (how they think they should be based on others' expectations) can lead to emotional discomfort and affect decision-making. This theory is critical in understanding customer behavior, as these discrepancies can influence purchasing decisions, brand loyalty, and overall satisfaction. Understanding Self-Discrepancy Theory is crucial in enhancing Customer Experience (CX) as it helps businesses align their offerings with customers' desires, aspirations, and societal expectations.

2. Understanding the Bias

• Explanation: Self-Discrepancy Theory focuses on the emotional discomfort that arises from gaps between different self-concepts—the actual self, ideal self, and ought self—leading to decisions that aim to reduce these discrepancies.
• Psychological Mechanisms: This theory is driven by the human need for consistency and self-congruence. When there is a mismatch between the actual self and the ideal or ought self, individuals may experience negative emotions such as guilt, anxiety, or dissatisfaction.
• Impact on Customer Behavior and Decision-Making: Customers influenced by Self-Discrepancy Theory may make decisions that are aimed at reducing the gap between their actual self and their ideal or ought self, often leading to aspirational purchases or choices that align with societal expectations.

Impact on CX: Self-Discrepancy Theory can significantly impact CX by influencing how customers perceive and interact with brands, particularly those that promise to help them achieve their ideal self or meet societal expectations.

• Example 1: A customer may purchase luxury goods to align their actual self with their ideal self, driven by the desire to appear successful and affluent.
• Example 2: A consumer might choose eco-friendly products to align with their ought self, based on societal expectations of environmental responsibility.

Impact on Marketing: In marketing, Self-Discrepancy Theory can be leveraged by crafting messages that resonate with customers' ideal and ought selves, encouraging them to choose products or services that help close these gaps.

• Example 1: A marketing campaign that emphasizes how a fitness program can help customers achieve their ideal body can appeal to their desire to align their actual self with their ideal self.
• Example 2: Highlighting a product's ethical or sustainable practices can appeal to customers' ought self, aligning with their desire to meet societal expectations.

3. How to Identify Self-Discrepancy Theory

To identify the impact of Self-Discrepancy Theory, businesses should track and analyze customer feedback, surveys, and behavior to understand how discrepancies between different self-concepts influence decision-making.

• Surveys and Feedback Analysis: Conduct surveys asking customers about their self-perception and how their purchases align with their ideal or ought selves. For example:
  • "How do you feel this product or service helps you achieve your personal goals or ideals?"
  • "Do you feel that your purchase aligns with societal expectations or your own aspirations?"
• Observations: Observe customer interactions and decision-making processes to identify patterns where Self-Discrepancy Theory influences choices, particularly in aspirational or value-driven purchases.
• Behavior Tracking: Use analytics to track customer behavior and identify trends where discrepancies between actual, ideal, and ought selves impact decision-making. Monitor metrics such as purchase patterns, brand loyalty, and feedback related to personal values and aspirations.

4. The Impact of Self-Discrepancy Theory on the Customer Journey

• Research Stage: During the research stage, customers may seek out products or brands that promise to help them achieve their ideal or ought selves, shaping their perceptions and expectations.
• Exploration Stage: In this stage, Self-Discrepancy Theory can guide customers as they evaluate options, with a focus on how each choice aligns with their personal goals or societal expectations.
• Selection Stage: During the selection phase, customers may choose products or services based on their potential to reduce the gap between their actual self and their ideal or ought self, leading to aspirational purchases.
• Loyalty Stage: Post-purchase, Self-Discrepancy Theory can influence customer satisfaction and loyalty, as customers continue to seek alignment between their self-concepts and their experiences with the brand.

5. Challenges Self-Discrepancy Theory Can Help Overcome

• Enhancing Self-Alignment: Understanding Self-Discrepancy Theory helps businesses create strategies that align their offerings with customers' ideal or ought selves, reducing the gap and increasing satisfaction.
• Improving Engagement: By recognizing this theory, businesses can develop marketing materials and customer experiences that resonate with customers' personal goals and societal expectations, increasing engagement.
• Building Trust: Leveraging Self-Discrepancy Theory can build trust by ensuring that customers feel supported in their journey toward self-alignment, leading to stronger brand loyalty.
• Increasing Satisfaction: Creating experiences that help customers align their actual self with their ideal or ought self can enhance satisfaction by reducing emotional discomfort and increasing fulfillment.

6. Other Biases That Self-Discrepancy Theory Can Work With or Help Overcome

• Enhancing:
  • Aspirational Bias: Self-Discrepancy Theory can enhance aspirational bias, where customers make decisions based on their desire to achieve their ideal self.
  • Social Proof: Customers may be influenced by social proof that aligns with their ought self, reinforcing the impact of Self-Discrepancy Theory.
• Helping Overcome:
  • Cognitive Dissonance: By helping customers align their self-concepts, businesses can reduce cognitive dissonance, where customers experience discomfort due to inconsistencies.
  • Expectation Bias: Addressing discrepancies between self-concepts can help overcome expectation bias, where customers' expectations influence their satisfaction.

7. Industry-Specific Applications of Self-Discrepancy Theory

• E-commerce: Online retailers can create personalized experiences that highlight products aligning with customers' personal goals or societal expectations, reducing self-discrepancy.
• Healthcare: Healthcare providers can offer treatments and services that align with patients' personal health goals and societal expectations, helping to reduce self-discrepancy.
• Financial Services: Financial institutions can provide tools and resources that help customers achieve their financial goals, reducing the gap between their actual and ideal selves.
• Technology: Tech companies can design products and services that empower customers to achieve their ideal self, whether through productivity tools or wellness apps.
• Real Estate: Real estate agents can highlight properties that align with clients' personal aspirations, such as a home that supports a sustainable lifestyle, reducing self-discrepancy.
• Education: Educational institutions can promote programs that align with students' career goals and societal expectations, helping to reduce self-discrepancy and increase enrollment.
• Hospitality: Hotels can offer experiences that help guests achieve their ideal self, such as wellness retreats or luxury stays, reducing self-discrepancy.
• Telecommunications: Service providers can offer plans and features that align with customers' personal and professional goals, helping to reduce self-discrepancy.
• Free Zones: Free zones can promote services that align with businesses' growth goals and societal expectations, helping to reduce self-discrepancy for entrepreneurs.
• Banking: Banks can offer financial products that align with customers' long-term goals, such as savings plans for retirement, reducing the gap between their actual and ideal selves.

8. Case Studies and Examples

• Lululemon: Lululemon’s branding and products align with customers' aspirations for a healthy, active lifestyle, helping to reduce the gap between their actual and ideal selves.
• TOMS Shoes: TOMS’ "One for One" model aligns with customers' ought self by supporting societal expectations of social responsibility, reducing self-discrepancy.
• LinkedIn: LinkedIn’s professional networking platform helps users align their actual self with their ideal career goals, reducing the gap between their current and desired professional identity.

9. So What?

Understanding Self-Discrepancy Theory is crucial for businesses aiming to enhance their Customer Experience (CX) strategies. By recognizing and addressing this theory, companies can create marketing strategies and product offerings that help customers align their actual self with their ideal or ought self, reducing emotional discomfort and increasing satisfaction. This approach helps build trust, validate customer choices, and improve overall customer experience.

Incorporating strategies to address Self-Discrepancy Theory into marketing, product design, and customer service can significantly improve customer perceptions and interactions. By understanding and leveraging Self-Discrepancy Theory, businesses can create a more engaging and satisfying CX, ultimately driving better business outcomes.

Moreover, understanding and applying behavioral economics principles, such as Self-Discrepancy Theory, allows businesses to craft experiences that resonate deeply with customers, helping them achieve their personal goals and societal expectations.