What Are Moments of Truth? A Beginner’s Guide

A moment of truth often differentiates an excellent customer experience

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What Are Moments of Truth? A Beginner's Guide
Loyalty ManagementVoice of the CustomerInsights

Published: April 6, 2022

CX Today Team

Some customer journey touchpoints are more important than others to drive positive CX outcomes and secure maximum customer value. The most critical are often referred to as “moments of truth”.

The term was popularized by the leading analyst firm McKinsey in 2006, and maximizing performance at these mission-critical moments is now an integral part of customer journey design.

What Is a Moment of Truth?

In CX, a moment of truth refers to a moment in the customer journey that is most likely to determine how a customer feels about a brand.

Over several years of research, McKinsey found that customer decisions tend to be emotionally charged and are not always influenced by tangible factors like product pricing or shipping options. As a result, most customers will make an impulsive decision at some point in time, and companies that can tap into the customer psyche during these moments of truth will gain a significant advantage.

Companies may then prioritize these moments of truth instead of giving equal attention to every touchpoint. By doing so, they maximize the value of their customer journey investment.

4 Common Examples of Moments of Truth in CX

Measuring customer emotion across the journey is ideal for pinpointing moments of truth that make customers either love or hate a brand.

While these are typically unique in every business, it is relatively commonplace for the following touchpoints to become moments of truth.

1. Search Engine Appearances

Google introduced the idea of the zero moment of truth or ZMOT to capture the role of search engines in the customer journey. It argues that moments of truth begin long before a customer has even heard of the product, service, or brand.

ZMOT is when a person becomes aware of a need that they currently have or could have in the future and acknowledges the necessity of a company to fulfill that need. In the digital world, the customer is then likely to turn to a search engine to connect with a brand. Therefore, search engine optimization (SEO) is crucial to hooking people and engaging them in a customer journey.

2. The First Encounter

When the customer first encounters a brand, the moment often passes by in the blink of an eye. For example, when a potential customer sees a sponsored ad while scrolling on their Instagram feed. Or, it could stretch into an extensive interaction, like in B2B scenarios, when a decision-maker hears a formal pitch from multiple brands. The impression made at this moment is often lasting and difficult to counter.

3. The First Experience

Whether it is a trial version of a solution, a product demo, or a free ice cream at a trade show, the first active engagement that a customer has with a brand often sets the tone for the future.

Indeed, sparking a genuine interest in the customer’s mind may eventually translate into lifetime value.

4. Waving Goodbye

The Peak-End Rule rule – devised by Daniel Kahneman and Barbara Fredrickson – dictates that people encounter two peaks of emotion during an experience. The second comes at the journey’s end because how an experience ends has a disproportionate impact on our memory.

However, a customer journey will hopefully include peaks and the beginning and middle of the experience too, ensuring that the customer journey stays emotionally stimulating.

How to Measure and Act on Moments of Truth Data

The challenge with moments of truth is that they are tough to identify, and even the customers themselves may not be aware of them.

They often require intensive research, psychological mapping, and advanced data analysis to pinpoint where these moments of truth lie so that the company can enhance its existing journey design.

Journey analytics and sentiment analysis tools are often excellent tools to help CX teams follow this process.

Discover more about how sentiment analysis can enhance customer journeys by reading our article: Sentiment Analysis: Using it to The Customer’s Advantage

 

Knowledge ManagementOmni-channelSentiment Analysis
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