I’ve recently been involved in several research studies in which participants provided both in-the-moment input (e.g., using a mobile app) and retrospective input (in a focus group or interview).  Looking at the differences between what people experience and what they remember can be extremely valuable, and is a great example of the peak-end rule in behavioral economics.

The peak-end rule states that people don’t remember all parts of an experience equally.  Rather, their strongest memories are of two parts of the experience: the most intense moment and the end of the experience.  I saw this in my recent research studies: people who had a high point or a great interaction during their experience tended to remember the whole experience as positive and minimized the negatives they experienced.  And the reverse was also true: people who experienced a significant negative tended to forget about the small positives they experienced.

This has important implications for companies.  It may not be enough to just try to ensure everything goes smoothly in a customer interaction: there’s always a chance that not everything will be perfect.  But small negatives can be outweighed by a great interaction.  For example, a long wait online may be forgotten if the cashier is particularly pleasant.

We can find those opportunities to create great memories by comparing what customers experience with what they remember.  Then we examine the positive memories and look for ways to create more memories like them.

Let’s design research to compare your customers’ experiences with their memories.  Call me at 760-469-9266 or email info at bureauwest.com.

 

Sources: Bureau West research; “Choices, Values, and Frames” by Daniel Kahneman  and Amos Tversky, 2000