Memory Over Experience: Colin Shaw on Designing Customer Recall

In a recent LinkedIn post, Colin Shaw delves into a fundamental concept that reshapes our understanding of customer experience (CX), emphasizing the critical role of memory over the immediate event. Shaw highlights a profound statement from Nobel Prize-winning psychologist Daniel Kahneman that has significantly influenced his perspective.

The Power of Memory in Customer Decisions

Shaw introduces Kahneman’s core idea, stating that customers do not base their future decisions on the raw experience they undergo, but rather on the memory they retain of that experience. This distinction, as Shaw points out, has profound implications for how businesses approach customer satisfaction and loyalty.

“We don’t choose between experiences. We choose between the memory of an experience.”

According to Shaw, the common business practice of focusing heavily on optimizing the experience as it happens often misses the mark. While significant resources are invested in the moment of interaction, Shaw argues that these moments are often fleeting and quickly forgotten by the customer. The lasting impact, he explains, comes from the memory that is formed, which dictates repeat business, word-of-mouth referrals, and future purchasing decisions.

The Disconnect Between Experience and Memory

Shaw elaborates on this disconnect by drawing parallels to everyday life. He questions whether individuals can recall specific details of a routine transaction from the past, such as a verification code, suggesting these are quickly discarded by the brain. In contrast, he notes that a negative emotional experience, even from years prior, often remains vivid and influential.

“Your customers are no different. They’re not buying your experience. They’re buying the memory of it.”

This highlights a key challenge for businesses: the experience itself is ephemeral, while the memory is enduring and emotional. Shaw posits that companies often leave the creation of this crucial memory to chance, rather than deliberately designing it.

Designing the Customer’s Memory

Shaw challenges business leaders to shift their focus from optimizing the transient experience to intentionally shaping the lasting memory. He frames this as the most valuable aspect of a business’s customer engagement strategy.

“So here’s the question I keep coming back to, and the one I’d put to every leader: you can measure your experience all you like — but are you deliberately designing the memory your customer walks away with?”

In Shaw’s view, the most effective CX strategies are those that proactively engineer the emotional takeaway a customer has. This involves understanding the psychological principles that govern memory formation and applying them to customer interactions. He suggests that by focusing on the memory, businesses can build stronger, more resilient customer relationships.

The Untapped Potential of Memory Design

The author concludes by emphasizing that the memory of an experience is the most valuable real estate in business, yet it is often neglected. By contrast, he implies that a deliberate focus on designing positive and lasting memories can yield significant competitive advantages.

“Because that memory is the most valuable real estate in your business. And right now, most of us are leaving it empty.”

Shaw encourages leaders to consider whether their current CX efforts are truly aimed at cultivating the memories that will drive future customer behavior. He suggests that a shift in perspective, prioritizing the design of memory, is essential for long-term success in customer loyalty and advocacy.