From Customer Emotions to Actionable Insights -- A presentation by Peter Dorrington, founder, XMplify Consulting, at the 2020 CX Emotion conference (https://cx-emotion.com), July 22, 2020.

1. From
Customer
Emotions to
Actionable
Insights
Peter Dorrington
Founder, XMplify Consulting
22nd July 2020
22 July 2020 ©2020 XMplify Consulting. All rights reserved 1
…setting an example to follow

2. First, a few words about me
22 July 2020 ©2020 XMplify Consulting. All rights reserved 2
• 40+ years of practical experience
• Experience Management (XM)
• Customer Experience (CX)
• Employee Experience (EX)
• Partner Experience (PX) aka B2B CX
• Combining data science + behavioural science
…understanding why people do what they do, what they
are likely to do next, and how organisations should best
respond

3. So, before we
begin…
How are
you feeling
right now?
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4. Feelings are an important part of how we interpret
experiences – but not the whole story
“At the end of the day people
won't remember what you said or
did, they will remember how you
made them feel” ― Maya Angelou
Neuroscience shows that all human
decisions contain an emotional
component - which is not to say that
decisions are always made
emotionally
22 July 2020 ©2020 XMplify Consulting. All rights reserved 4

5. Why should we care?
Quantifiable business results!
Used well, emotion analytics can
lead to better decision-making,
resulting in:
• Differentiation from competition
• Increase revenue
• Lower costs
• Protect margins
• Reduce customer churn, and
• Improve satisfaction and advocacy
22 July 2020 ©2020 XMplify Consulting. All rights reserved 5
Increased
Revenue
More
Products
Lowered
Costs
Reduced
Churn

6. Emotion Analytics can impact every phase
of the customer lifecycle
Acquiring
Identifying what customers care about
Targeting similar customers
Accelerating the buying process
Retaining
Targeting ‘at risk’ customers
Rewarding loyalty
Promoting economic activity
Onboarding
Targeting activation campaigns
Supporting onboarding
Making Recommendations
Engaging
Encouraging self-service
Personalising NBA
Delivering empathic experience
22 July 2020 ©2020 XMplify Consulting. All rights reserved 6

7. What customers value
and how they choose a vendor
Motivation
Psychological Rational / Functional
SelectionCriteria
Internal
• Habit
• Self-esteem / pride / prestige
• Autonomy
• Belonging
• Distinction / uniqueness
• Competence / ambition / self-development
• Pleasure-stimulation
• Physical wellbeing
• Self-actualisation / meaning
• Security
• Popularity-influence / sex appeal
• Money-luxury
• Emulation / imitation
• Removal of pain
• Suitability to need / utility
• Durability / quality
• Variety of use / adaptability
• Economy / price / affordability
• Safety / fear / anxiety
• Ease / quickness
• Profitability / value
• Curiosity
• Scarcity
External
• Awareness
• Appearance
• Recommendation / trust
• Imitation
• Exclusivity / prestige
• Habit
• Convention
• Convenience
• Accessibility
• Price
• Availability of credit
• Payment mechanism
• Associated services
• Ease of purchase
• Prior customer experience
• Reputation
22 July 2020 ©2020 XMplify Consulting. All rights reserved 7
CustomersVendor
Marketing
PurchaseProfit
EconomyPrice
Features
Convenience
Proximity
Capacity
Availability
Costs
‘Need’
Suitability
Satisfaction

8. Why apparently similar people behave differently
Human decisions are based on multiple factors:
Needs
‘Rational’, bounded – price, availability, convenience
Wants
‘Emotional’, unbounded – more joy, less fear, increased certainty
External Influences
The ‘wisdom of crowds’ (e.g. star ratings, recommendations)
Internal Biases
Cognitive & unconscious biases (faulty logic / prejudice)
Stimulus & Context
What I am trying to do, where, when, how…
History
Recalling prior experiences, expectations, habit
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What I
Need
What I
Want
External
Influences
Internal
Biases
Stimulus
History

9. Emotions, Arousal, Valence and Dominance
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High Arousal
Low Arousal
PositiveValence
(pleasant)
NegativeValence
(unpleasant)
Sad
Joy
Calm
Based on the circumplex model of emotion developed by James Russell
Enraged
Annoyed
Angry
Serenity
Apprehension
Pensiveness
Annoyance
Joy
Fear
Sadness
Anger
Ecstasy
Admiration
Terror
Amazement
Grief
Loathing
Rage
Vigilance
Based on the research of Robert Plutchik

10. Longitudinal effect on emotional attachment
Example: how our feelings about a car change over time
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pre-purchase ‘new car’ ‘my car’ ‘a car’ ‘old car’ ‘wreck’ ‘classic’ ‘vintage’
attachment
t

11. How to represent emotion for analysis
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The person
feeling the
emotion(s)
What
Where
When
Why
Subject
Emotion(s) Intensity
Aspect(s)
Start Time
Duration
The stimulus
(cause) of the
emotion
Their location (physical
or virtual) when the
emotion started
What emotions are
they feeling about the
‘subject’
What about the subject is causing
an emotional response?
The peak intensity of each emotion
they are feeling
We rarely feel one
emotion in isolation
How long after the
stimulus did the feeling
start / last
Trigger time
When the stimulus event
happened
When the emotion began to
change
How long it took the emotions to
return to ‘normal’
What does this person care about and why

12. High-level flow – research phase
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Emotional personae
Customer records
Verbatim narratives
Quantitative data
Topic modelling
Emotion analytics
Sentiment analytics
Behavioural analytics
Correlation models
Grouping models
Explanatory models
Predictive models
NLP / NLU
Moments that matter Model factory
Modelling
Journey Analysis
Surveys
Ontology / taxonomy

13. High-level flow – operational phase
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Emotional personae
Customer records Quantitative event data Behavioural scoring
Moments that matter
Model factory
Customer emotion
delta scores
Customer emotions
table
Model tuning
Regular refresh
Operational
systems

14. Emotions and change management
- employees are people too
The Vision To Results framework allows leaders to
set up a really solid platform for transforming
employee motivation and performance in delivering
the organisation’s goals
• Set Direction – provides clarity; what is the
goal? Why is it important? What does the data
say? And, how to inspire the change
• Engage & Excite – Often overlooked, this
section focused on gaining ‘buy-in’ and gauging
willingness to change
• Enable & Execute – Align execution
around best practice, allocate the work
and ensure accountability
• Sustain Momentum – Measure and
celebrate success, adapt to change and
identify future requirements.
©2020 XMplify Consulting. All rights reserved 14
Vision
Reality
Strategy
Believability
Desirability
Capabilities
Prioritised Activity
Accountability
Maintain Energy
High Visibility
CreateContextDrivePerformance
Rational Emotional
Set
Direction
Engage &
Excite
Enable &
Execute
Sustain
Momentum
1
2
3
4

15. Summary
• Feelings are an important part of how we interpret experiences
• Deployed effectively, emotion analytics delivers quantifiable business
results
• There are lots of factors that contribute to a customer's decision to act
• I recommend using a small number of emotions - we can derive nuance
• Time is also a factor, influencing about how strongly we feel about
something
• For analysis, we need to know more than just 'what feelings, and when'
• Deployment has 2 phases: research and operationalising
• Employees are people too - we need to address their emotional needs
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16. 22 July 2020 ©2020 XMplify Consulting. All rights reserved 16
peter@xmplify.co.uk
linkedin.com/in/peterdorrington
@pdorrington