By: Mazen Moustafa 

KYC—or Know Your Customer—is a known term and process used in banking or any financial institution. However, does the need to “know our customers” prevail only in legal and financial domains? Do other domains not in that much need to “know their customers?” 

Let’s leave this hanging for a while! We’ll get to the answer a little later.

Now, let’s talk a little bit about Customer Experience. Customer experience has many different definitions, one of which is related to the perception of the term by end-consumers themselves. In many cases, the definition can be as simple as the provisioning of a high-quality service. So, in the eyes of the consumer, having quality service is synonymous with good customer experience. 

Now, let’s dig one layer below this. What does customer experience really mean? There’s the technical definition, and there’s the general definition. Let’s stick to the no-terminology definition:

Customer Experience is “the sum of customers’ perceptions, impressions, and feelings resulting from interactions with a certain brand’s products and services.”

Customer Experience is the KYC that all companies in all industries need to be able to sell, expand, grow, or even just maintain their market share. But do companies really know their customers? If they do, then to what extent? Let’s see what kind of knowledge companies have about you and what this knowledge brings to the table. Consider supermarkets as an obvious example: 

“Health is the greatest wealth.”

Fresh fruits and vegetables stuffed at the entrance of a supermarket is a common pattern in almost all major supermarkets. Take a couple of seconds to think about it. Why are so many vegetables and fruits always stuffed at the supermarket entrance? Yes, that’s right! They’re there so that you feel good about shopping here. You’re in the right place! You’re in a healthy place. But the truth is, you’re in a place that totally understands how your mind works. You’d go around stuffing your cart with as many of these healthy products as possible. While you’re still walking down the aisles of the supermarket, you’ll feel more tolerant towards adding some of the unhealthy stuff. You deserve it! You already have a cartful of healthy stuff to back up your other not-so-healthy choices. 

“Mommy! I want some cereal.” 

Are you still in the supermarket? Do you notice the Tony Tiger—the cereal we sometimes get for our children as part of their daily breakfast? Do you see how the tiger on the pack is looking down? It’s not a branding mistake! These cereals are sold to children. Children are short, so the product is, in fact, making continuous eye contact with its target customers. It may not catch your eye; it doesn’t matter if it will. It’s not your experience; it’s the child’s experience: the real customer’s experience.

Done shopping? Well… Not yet! 

Healthy or otherwise, your cart will probably be full by now. It’s time to check out and go home. You head towards the cashier and wait in the queue. It’s moving slowly, but you have seen the cashier already. You are almost there… Wait a minute! What’s that? Toothbrushes? You do indeed need a toothbrush, so you grab one. You’re thankful that you found it nearby while you were waiting in line; otherwise, you’d have had to give away your position in the queue. But what about the urge to also take a couple of chocolate bars and a bottle of gum? 

Recent studies show that only 25% of shopping is planned, while 75% is spontaneous. The setup you are in right now is so convenient for a spontaneous purchase; you are bored, the queue is moving slowly, and you are about to leave. A voice in the back of your head keeps alerting you that this is your last chance to get what you want before you check out. Under these pressures, you’re likely to make impulsive purchases. 

But why are toothbrushes placed in this specific section and not anywhere else? They are indeed placed somewhere else in the supermarket, but will you leave your queue and return to the inside of the supermarket just to grab a toothbrush? Unlikely! If you forgot cheese, meat, pastry, coffee, or even soap, you’d leave your position in the queue. These are things you originally came here for, but at the end of the day, the old toothbrush is still working. 

KYC isn’t just about ID, passport, and driving license. KYC is what all businesses need to do to thrive in today’s world: a broader view that requires connecting many dots, analyzing patterns, and understanding the customer’s journey, needs, and wants. The key to all that is a proper level of engagement with your customer. 

Published by: Nelly Chavez