Peak-end rule
Also called: peak-end rule
Peak-end rule is the psychological phenomenon that people do not judge events based on an average of the entire experience. According to the peak-end rule, people base their final judgment on two memories: the peak and the end. This principle was first described by psychologist Daniel Kahneman.
The peak-end rule applies to both positive and negative experiences. Because the duration of moments decisive to an experience or memory is less relevant, defining peak moments and endings are also referred to by scientists as snapshots.
The peak-end rule applied
Companies can actively use this principle in sales and support, for example. Whereas the classic rule is that you only have one chance to make a first impression, customer experiences are determined primarily by the moment or detail that sticks most and by the feeling at the end.
Ensuring one exceptionally positive moment and a pleasant ending may be a more effective way to ensure positive customer experiences than trying to optimize the entire customer journey.
By applying the peak-end rule, in theory, any event or occasion can leave a positive experience. Even if a customer reports with a complaint or problem, turning that into a positive peak-end experience with an organization and its product or service can still be made into a positive experience.
Examples
A well-known example of a company applying the peak-end rule is IKEA. The company excels in good products at a low price, but in order to checkout, you must first survive the self-service warehouse and the line for checkout. To make customers leave the store feeling good, they can treat themselves to a cheap hot dog or ice cream after checkout.
Many online stores are aware of the added value of a memorable experience at the end of the ordering process. More and more online stores are doing this by including a distinctive extra with the order, such as a discount voucher, a handwritten bill or a sample.
