ISSUE NO.28

The Peak-End Rule

Picture this: You’re going on a week-long ski trip with your buddies. Over the course of the week, you see some incredible things. On day one, you find some fresh, untouched powder that feels like a dream. On day three, you share a beer with your buddies at the peak. On the last day, you all drive home, laughing wildly as you sing group karaoke all the way home.

You will forever remember this ski trip as being a success.

But the truth is, it wasn’t all fun and games. The slopes were crowded, and you often had to wait 10-plus minutes to just get on the lift. Your buddy lost his wallet at the lodge and you all spent three hours looking for it. You bonked your head on a tree and got a decent headache that lasted 48 hours.

So, why do you remember the experience as being all good?

This is the Peak-End Rule in action.

The Peak-End Rule psychological phenomenon that suggests people tend to remember and judge an experience based on its peak (the most intense point) and its end. This reduces our memory of the event to a snapshot, which is easier to reference than recalling the entire event.

In the case of the skiing story, the peak (riding fresh pow) and end (singing karaoke) of the trip are what remained as highlights of the trip, and they define how your brain chooses to remember it.

And, this rule is just as relevant to marketing as it is to skiing.

As an entrepreneur, you want to provide the best customer experience possible to drive customer satisfaction and loyalty, and using the Peak-End Rule can help.

Here’s how:

Identify and Increase Positive Peaks

Map out the customer journey, and list the emotions that the customer experiences at every step of the buying process. Once you’ve identified the positive peaks in the customer journey, find ways to augment them.

Remove Negative Peaks

Every buying process will have both positive and negative touchpoints. While you can’t eliminate all negative experiences, it’s important to remove the biggest ones. It’s all about reducing friction.

Ensure a Positive Ending

Instead of trying to simply end the interaction after purchase, find a way to save the best for last. Adding things like surprise discounts or free gifts at and after the purchase can be a great way to enhance the buying experience.

It may be impossible to remove all negative touchpoints in the customer journey, but that doesn’t mean that you can’t make the buying experience a positive one. By using the Peak-End Rule, you can ensure that your customers have the best experience possible, leaving them with lasting memories, increasing satisfaction and loyalty.

Until next time,
— The CPG MBA Team

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