1. Introduction to Sensemaking Bias

Picture a customer who, when faced with conflicting reviews about a product, crafts a coherent narrative that aligns with their expectations and desires. This tendency to create understandable stories from disparate information is driven by Sensemaking Bias.

Sensemaking Bias is a cognitive bias where individuals create coherent stories and explanations from incoherent or incomplete data. This bias can significantly impact how customers interpret information and make decisions, as their need for understanding shapes their perceptions and actions. Understanding Sensemaking Bias is crucial in enhancing Customer Experience (CX) as it helps businesses present information in a way that aligns with customers’ need for coherent narratives.

2. Understanding the Bias

• Explanation: Sensemaking Bias occurs when individuals create coherent stories and explanations from incoherent or incomplete data, often filling gaps with their own interpretations to make sense of the information.
• Psychological Mechanisms: This bias is driven by the human need to understand and make sense of the world, leading to the construction of narratives that provide clarity and meaning.
• Impact on Customer Behavior and Decision-Making: Customers influenced by Sensemaking Bias may interpret information in ways that align with their expectations and desires, shaping their perceptions and decisions.

Impact on CX: Sensemaking Bias can impact CX by influencing how customers interpret information and make decisions, enhancing their satisfaction when they can create coherent narratives from the data provided.

• Example 1: A customer reads mixed reviews about a product but creates a narrative that aligns with their positive expectations, leading them to make a purchase.
• Example 2: A customer receives conflicting information about a service but crafts a coherent story that justifies their decision to choose it.

Impact on Marketing: In marketing, Sensemaking Bias can be leveraged by presenting information in a way that helps customers create coherent and positive narratives, guiding their decisions.

• Example 1: A marketing campaign that provides clear, consistent messaging can help customers form positive narratives about the product.
• Example 2: Using storytelling techniques to highlight customer experiences can help potential buyers create coherent stories that align with their desires.

3. How to Identify Sensemaking Bias

To identify Sensemaking Bias, businesses should track and analyze customer feedback, surveys, and behavior to understand how customers create narratives from the information they receive.

• Surveys and Feedback Analysis: Conduct surveys asking customers about their interpretation of information and the narratives they create. Include questions that probe how they make sense of conflicting data. For example:
  • "How do you interpret mixed reviews about a product?"
  • "Do you create stories or explanations to make sense of the information you receive?"
• Observations: Observe customer interactions and responses to marketing efforts to identify patterns where sensemaking influences decisions. Pay attention to how customers interpret and discuss information.
• Behavior Tracking: Use analytics to track customer behavior and identify trends where sensemaking influences choices. Monitor metrics such as review engagement, content interactions, and purchase decisions.

4. The Impact of Sensemaking Bias on the Customer Journey

• Research Stage: During the research stage, customers may create narratives from conflicting information, influencing their initial interest and trust in products and brands.
• Exploration Stage: In this stage, Sensemaking Bias can help customers feel more confident and reassured as they create coherent stories that align with their expectations.
• Selection Stage: During the selection phase, customers may choose products based on the narratives they have constructed, even if the data is incomplete or conflicting.
• Loyalty Stage: Post-purchase, Sensemaking Bias can influence customer satisfaction and loyalty, as customers feel validated in their coherent narratives and remain loyal to brands that align with their stories.

5. Challenges Sensemaking Bias Can Help Overcome

• Enhancing Understanding: Understanding Sensemaking Bias helps businesses present information in a way that aligns with customers' need for coherent narratives.
• Improving Engagement: By recognizing this bias, businesses can develop marketing and content strategies that help customers create positive stories and explanations.
• Building Trust: Leveraging Sensemaking Bias can build trust by providing consistent and clear information that aligns with customers' expectations.
• Increasing Satisfaction: Providing information that helps customers create coherent narratives can enhance their satisfaction and overall experience.

6. Other Biases That Sensemaking Bias Can Work With or Help Overcome

• Enhancing:
  • Confirmation Bias: Sensemaking Bias can enhance confirmation bias, as customers create narratives that align with their pre-existing beliefs.
  • Cognitive Dissonance: Customers may resolve cognitive dissonance by creating coherent stories that justify their decisions, enhancing the impact of Sensemaking Bias.
• Helping Overcome:
  • Information Overload: By providing clear and consistent information, businesses can help customers overcome information overload and create coherent narratives.
  • Uncertainty: Presenting information that helps customers make sense of conflicting data can reduce uncertainty and increase confidence in their decisions.

7. Industry-Specific Applications of Sensemaking Bias

• E-commerce: Online retailers can use clear and consistent product descriptions and reviews to help customers create positive narratives and make informed decisions.
• Healthcare: Healthcare providers can present treatment information in a clear and consistent manner to help patients create coherent stories and understand their options.
• Financial Services: Financial institutions can provide clear and consistent advice to help customers make sense of their financial decisions and create positive narratives.
• Technology: Tech companies can use storytelling techniques and clear product information to help customers understand and create positive narratives about their products.
• Real Estate: Real estate agents can present property information in a clear and consistent manner to help clients create coherent stories and make informed decisions.
• Education: Educational institutions can provide clear and consistent information about programs and courses to help students create positive narratives and make informed choices.
• Hospitality: Hotels can use clear and consistent marketing messages to help guests create positive narratives about their stay and enhance their overall experience.
• Telecommunications: Service providers can present plan information in a clear and consistent manner to help customers create coherent stories and make informed decisions.
• Free Zones: Free zones can provide clear and consistent information about business opportunities to help companies create positive narratives and make informed decisions.
• Banking: Banks can provide clear and consistent information about financial products and services to help customers create coherent stories and make informed choices.

8. Case Studies and Examples

• Apple: Apple’s marketing and product presentations create clear and consistent narratives that help customers make sense of their products and build positive perceptions.
• Nike: Nike’s storytelling techniques in marketing campaigns help customers create positive narratives about their products and brand.
• Amazon: Amazon’s use of clear and consistent product information and reviews helps customers create coherent stories and make informed purchasing decisions.

9. So What?

Understanding Sensemaking Bias is crucial for businesses aiming to enhance their Customer Experience (CX) strategies. By recognizing and leveraging this bias, companies can present information in a way that aligns with customers' need for coherent narratives, thereby enhancing satisfaction and loyalty. This approach helps build emotional connections, provide clarity, and improve overall customer experience.

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

Additionally, understanding and leveraging behavioral economics principles can provide further insights into how biases like Sensemaking Bias influence customer behavior and decision-making.