Article
The 'peak-end' rule: Can it transform your customer experience?
The "peak-end" rule says that if you take a moment to understand a concept, you have an opportunity to reevaluate and transform — an idea most retailers could benefit from.
October 22, 2009
In psychology, there is a concept called the "peak-end" rule. If you take a moment to understand the idea, you have an opportunity to reevaluate and transform your retail customer experience in ways that could go a long way toward creating an ideal customer perception, and profitable customer behavior. That's something most businesses would agree these days is worth the effort.
If you've ever done public speaking, you were probably told that the most important aspects of your presentation were the opening and closing. The beginning and end, we're all led to believe, are what folks will remember of an experience. But the "peak-end" rule posits a different theory. Instead of beginning and end, it's the "peak" and the end of an experience that will stick with people.
Here's the rub: By "peak" we're not just talking about the most enjoyable or positive moment or aspect of the experience; peak in this case refers to the moment that is either the most positive or negative. In other words, it's the point which is furthest from the norm. So it could be the moment when the cashier thanks you with a genuine smile on his face, or the moment when the cashier stares blankly at you, loudly chewing her gum.
Proactively build peaks into your customer experience
Consider what this might mean for your business. Think of the overall customer experience — in-store, online, over the phone, through the mail, etc. One could look at each of these interactions and communications as a small stand-alone customer experience. If — as is stated in the peak-end rule —we all remember experiences in this way, focusing on the "peak" (good or bad) and the end, there's a tremendous opportunity to leverage this dynamic, to consciously construct each of these mini customer experiences in a way that will be based on delivering your brand promise, with a positive, feel-good peak, and a strong ending.
Improve customer experience day-by-day, process-by-process
The beauty of this insight is that it doesn't require a company to necessarily create costly communications or interactions from scratch. It's really as simple as taking an objective look at the many experiences that already exist, and tweaking them appropriately. If your customer already shops in your brick-and-mortar store, simply walk through that typical customer experience, asking yourself "what's the peak, and what's the end?" Do you already send your customers communications in the mail? Is there a thought-out peak and end to the communication? If not, change it so you're taking advantage of the opportunity to build on that customer perception.
As opposed to many customer initiatives and technologies, this can be done internally and incrementally. If employees in different areas of the company know that this is a goal, they can be empowered to improve customer processes and communications as they arise. It's about having the right perspective, and taking advantage of a chance to create memorable experiences for your customers. The reward is higher retention and higher profits.
William Cusick is the CEO of Vox Inc. and the author of "All Customers Are Irrational: Understanding What They Think, What They Feel, and What Keeps Them Coming Back." To submit a comment about this article, please e-mail the editor, James Bickers.
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