Human hedonism, a springboard to excellent customer service
All pedagogical research states that in business the aim of excellent, if not satisfying customer service, is to create a high value customer lifetime value.
This customer lifetime value is measured against certain metrics that include the aggregated number and value of purchases over a period of time the customer continues to use the brand, referrals made by the long-term customer, postings of satisfaction, contentment and loyalty remarks uploaded in social media, among others.
Ali Cudby, a customer retention expert researcher and author of the book “Keep your Customers,” says that it costs seven times more to acquire a new customer than retain existing customers. Moreover, she cites that a 5-percent increase in the annual value of loyal customers can result in a 25-percent brand profitability.
On the other hand, Wharton School’s professor of marketing David Reibstein maintains that the value derived from selling to an existing customer is 14 times higher than selling to a new customer.
The value of a lifetime customer
A customer lifetime value is not based on a single receipt but it is the summation of the amount of purchases made by a customer over a period of time in a life span and through life stages.
For example, customer Rose may have started with a skin care brand at age 21 when personal disposable income kicked in after acquiring her first full- time work. Over time, Rose’s skin changed and she began to look for other product offerings suitable to her emerging need, first from her favored brand. So long as the brand understands the customer’s needs and wants through time, the customer remains loyal.
Over time, Rose’s purchases also increased in product value and the brand was obligated to respond adequately to her customer needs and wants especially if the existing motivation has gained traction. Thus, the customer lifetime value of Rose at 21 years old undoubtedly would have increased.
Know your customers’ motivations
Mark J. Arnold and Kristy E. Reynolds in a paper published in the Journal of Retailing cites six categories of hedonistic shopping motivations.
Adventure shopper. A consumer seeking excitement, stimulation and an immersive sensory experience that include sights, sounds and smells.
Riding on human hedonism and the efficiency of today’s advances in artificial intelligence, Nike—founded in January 1964, now a 62-year old brand—has successfully married both the social motivation unique to humanity and the immersive experience of artificial intelligence to bring about a delightful customer experience.
Nike’s after dark tour in Sydney with its 21K run through Sydney streets and popular tourist spots like the Anzac bridge and Darling Harbour has become a fave among Nike runners. Bookings are done through a Sydney After Dark Tour artificial intelligence (AI) agent in the interest of efficiency.
Gratification shopper. Shopping is a mood management and emotional coping activity for gratification shoppers. Gratification shoppers are highly motivated by non-product related experiences rather than utilitarian benefits.
Aritzia clothing is a mid-tier clothing brand that capitalizes on the narrative of everyday luxury wear from professional wear to romantic pieces and athletic and lounge wear. Aritzia clothing hits the spot on the gratification shopper as it capitalizes on an immersive nightlife vibe with DJ booths and DJ music by resident DJs and popular artists while shopping at any moment of the day at its flagship store in SOHO New York.
Idea shopping. Idea shoppers are motivated to shop by new ideas or trends. A paper by Kshetri, 2024 and Casalo in 2025 both cite that AI applications, specifically generative AI are being implemented to enhance user experience and service value. Generative AI has emerged as a transformative force in business and marketing because of its innovative tools that can design new, more efficient customer experience, thus, not only improving customer satisfaction but creating memorable and personalized experiences. Huang and Rust in 2021 identified AI as the use of computational machinery to emulate capabilities inherent in humans.
Japan’s Pepper Parlor robot restaurant in Tokyu Plaza in Tokyo is a testament to how new experiences can motivate consumption. Along with human waiters, humanoid robots assist in taking orders, providing entertainment, bringing food to the table and cleaning.
Identifying your target market and knowing your customer’s buying motivation is key to providing excellent customer service. Likewise, identifying the most suitable product and service matched with adequate price points are significant variables that a targeted customer will truly appreciate.
The writer is chief brand strategist of MKS Marketing Consulting and is an alumna of Oxford University’s SAID Graduate School of Business Strategic Leadership and Strategic Marketing Executive Education Program and Stanford Graduate School of Business Strategic Marketing Executive Education. De Asis is also the 2025 ASEAN Women Entrepreneur awardee representing the Philippines for her advocacy in helping family business brands become category dominant market leaders or challenger. She is also an Agora Awardee for marketing education. Reach the author who is also a member of the Global Strategic Consulting Network at [email protected].
