There has
been some interesting work done by Dr. Daniel Kahneman, a professor at
Princeton University in the area, behavioral economics. Dr. Kahneman received
the Nobel Prize in 2002 for his work in economic sciences. One of the phenomenons
that he has written about, and which has been given much attention is the peak
– end rule. This rule provides some excellent guidance for building customer
loyalty.
In essence,
the rule explains how experiences are judged with the primary focus being on
intensity of emotions at their peak moments coupled with the endpoint or resolution
of customer experience. What is research
has pointed out is the most positive or negative emotional intensity. In the
end resolution of the service experiences have a disproportionate influence on
the overall experience of the customer.
What makes
this insight of Dr. Kahneman particularly attractive is that when we identify
the customer’s peak moments during the customer experience and then focus on
how the service experience ends we will create the most impact on how the
customer feels about overall experience. When these moments from managed the
company can plan on increasing the lifetime value of its customers.
Thus, there
are two areas that must be managed well; namely, (i) the careful identification
of the customer’s peak moments (those moments with maximum intensity of
emotions) and (ii) the last touch point of the service experience (the last
actions that occur before the experience ends). Many companies forget the
importance of the closing experience. Even though there have been many very
positive aspects with the customer during the customer contact, the manner in
which the call ends can negate much of the goodwill and loyalty that was
created through the service experience.
The bottom
line of this neuroscience approach to customer loyalty is that we now have a
way to focus on those aspects of the customer’s experience which will have the
greatest impact on the overall memory of the customer experience and hence should increase our ability to create and sustain loyalty.
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