Think about a favorite movie. If asked, you might recall important plot points. At the very least, most people are likely to remember the climax, or peak moment of the film, along with the ending. Everyone recalls the scene in Jaws when the shark explodes into smithereens, followed by the twist on the classic movie ending where Brody and Hooper swim off into the sunset.

What does this have to do with your business? More than you might think. This is just one example of the peak-end rule, whereby customers tend to remember the high (or low) point of any interaction with a brand, along with the end of the interaction, for good or ill.

They might not remember the cleanliness or organization of your store or the number of times employees offered to help them. But they’re sure to remember if there was a long wait in the checkout line that caused them to put down their goods and leave before making a purchase. They might remember that the employee at POS was fast, efficient, and helped them find an item they couldn’t locate in the store.

What is the peak-end rule and why is it so important for your business to embrace it? Here are a few things to consider.

What is the Peak-End Rule?

According to Psychology Today, the peak-end rule revolves around an emotional memory we form of any given experience, a memory that relies heavily on the peak emotional state we experienced, as well as the resolution. We weigh these points of the interaction most heavily, which is why we tend to form positive or negative perceptions after the fact based on any heightened emotion, even if it was only a brief part of the encounter.

If, for example, a customer walks into a store and there’s no system of sorting people into a queue for service (no line or number system, for example), he/she might start to feel agitated and annoyed. Even if the wait time is short, people are helped in the order they arrived, and the customer ultimately makes a purchase (all neutral or slightly positive), the customer may only recall the peak emotional state unless something happens to create a greater peak.

Why is It Important?

Understanding this psychological principle can help you to make necessary changes to the way you run your business so you can create positive peaks and resolutions in every customer interaction. For example, instead of letting customers sort themselves, you can add a roped line, a number system, or even door greeters to help direct and sort customers as they enter the store or approach the checkout.

You can also create scripts for employees to end every interaction on a positive note, even if all they say is “have a nice day” or “we hope to see you again soon.” When you focus on removing negative emotional stimuli, adding positive peaks, and ending on a high note, so to speak, you could dramatically change the way customers remember their overall experience with your brand.

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