The Peak End Rule was developed by Nobel Prize-winning psychologist Daniel Kahneman and has profound implications for how businesses design customer experiences.
The concept comes from the field of behavioral economics and says that customers don't judge a product or service based on the whole experience…
Subconsciously, they base it on how they felt at the most intense point and how they felt at the end.
This means you could have the best product in the world but if a customers peak experience is frustration (for example not knowing how to complete a certain task) and their end experience was them feeling ignored (because their request for support went unanswered), they will decide (and likely tell others) that your product is dreadful.
On the flip side, if your product is something less exciting but you add peak moments and ensure they always go away on a high, they will feel (and share) that your product is the best thing since sliced bread.
Two businesses that have tapped into this with great success are Disney and Zappos:
At Zappos, they will occasionally surprise customers with free upgrades to overnight shipping, creating an unexpected and delightful peak in the customer journey.
At Disney World, as visitors leave the parks, they often encounter a parade or fireworks display, ensuring their visit concludes with a spectacular and memorable ending.
Here is what you need to focus on to make the Peak End Rule work for you:
Focus on Critical Moments
Identify key moments in the customer journey that are likely to have the highest emotional impact. For a service-based business, this might be the moment of service delivery or a personal interaction with a client.
In a product-based business, consider the unboxing experience or the initial use of the product. Ensure these moments are highly positive and you will disproportionately affect the overall perception of your brand.
Engineer a Memorable Ending
The final interaction with a customer should be carefully crafted to leave a positive impression. This could be a follow-up call, a thank you email with a personalized message, or a small parting gift included with a purchase.
The goal is to end every customer interaction on a high note, ensuring that the last memory customers have of your brand is a delightful one.
Use Surprises to Elevate the Peaks
Surprising your customers positively can turn an ordinary experience into an extraordinary one. This could be an unexpected upgrade, a freebie, or exclusive access to additional services or products.
Surprises create high points in the customer experience that are likely to be remembered as peak moments.
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