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Thoughts and stories

Harnassing the power op people's reflections on the past can greatly influence your business.
Harnassing the power op people's reflections on the past can greatly influence your business.
Picture The Peak-End Effect

The peak-end effect

How would you judge an experience over time? Many people think that adding up all an event's negative and positive experiences and finding the mean is the answer to this question. For example, when judging your holiday experience when you have returned home, you could reflect on everything you have done.

Perhaps you had three awful meals, spent four days in the rain, and the roller coaster ride was so-so. But this was pleasantly offset by five great meals, ten days in blistering sun, and great windsurfing. So, on average, it was a good vacation. There were more pluses than there were minuses. Or, as economists would say, the utility of the event was positive.

Interestingly, this is not how we, as humans, judge events at all, and we often donโ€™t realise how this works for our minds.

We tend to judge events with a phenomenon called the Peak-End Effect. This means that our mind only focuses on two aspects of the event that stand out: ๐ญ๐ก๐ž ๐ž๐ฏ๐ž๐ง๐ญ ๐ฐ๐ข๐ญ๐ก ๐ญ๐ก๐ž ๐ก๐ข๐ ๐ก๐ž๐ฌ๐ญ ๐ฉ๐ž๐š๐ค ๐ข๐ง๐ญ๐ž๐ง๐ฌ๐ข๐ญ๐ฒ ๐š๐ง๐ ๐ข๐ญ๐ฌ ๐ž๐ง๐๐ฉ๐จ๐ข๐ง๐ญ. We compare those with each other, and thatโ€™s our overall feeling about the experience. This would look like the graph below.

As you can see, the mean between the green peak and end is higher than the mean between the red peak and end. It matters how high the highest peak and the peak at the end are. In holiday terms, the peak of the outstanding dinner that you had in a French Chรขteau in the middle of your vacation and the exceptional windsurfing in Biarritz on your last vacation day are the things your mind will use to judge your vacation. The red holiday had fewer negative experiences, but your mind will only consider it an โ€œokโ€ vacation.

How can we use this effect to our benefit? Now that we know that the peak and the end of an experience are significant to our brains, we can use this to structure a narrative to be much more pleasant. This could be, for example, a customerโ€™s journey, which is structured around the Peak-End Effect. A customer who engages with your website will stay longer on the website if there is a Peak-End effect incorporated. A side effect of the Peak-End effect is that people tend to lose track of time.

This effect can be used commercially and in our daily lives. Want more sales, attention, or just a great holiday experience? Create a high peak and end.

Want to know more about the Peak-End Effect? Get in touch with us.

Written by Duncan Rooders