Flexible employees with a knack for troubleshooting also ranked highly (10%). As is caring, responsive frontline staff who understand their history (11%). Proactive communication that’s appropriate to their needs (13%) is also important. A third of respondents to a McKinsey survey said this was the primary hallmark of a positive moment of truth. So, what do consumers want? First and foremost, they want good advice. Buying some new toilet cleaner? Not so much…Īccording to McKinsey, companies often make the mistake of focusing too much energy on humdrum transactions that, frankly, most customers aren’t emotionally invested in.Īnd even if brands know what to look for, they don’t always get their responses right.
All are classic moments of truth where emotions are likely to be running high. Reporting a lost credit card, getting in touch about a cancelled flight or asking for investment advice. Not every interaction with a customer can be described as emotionally impactful. What action they take (and the effect on a brand’s bottom line) depends on how they’re treated at those crossroads.įinding moments of truth – and getting them right! The upshot is that moments of truth inspire customers to take action. Only 13% did nothing after a great moment of truth experience. Nearly a third of people (29%) purchase another product from their bank, and a whopping 58% increase the value of the purchases they made with their current provider. Meanwhile, a ‘positive’ moment of truth has the opposite effect. That’s 72% of customers who actively changed their relationship with their bank (to the bank’s detriment). Around 14% decreased the value of the products they purchased. And 23% began buying services from another provider, even if they stayed with their current one. Within the banking industry, for example, 15% of customers who had negative experiences during a moment of truth switched banks shortly after.Ī further 20% stopped using a particular product at their main bank. McKinsey & Co research shows similar consumer behaviour. We’ve quoted this statistic before, but it’s worth repeating: one-third of consumers will walk away from a brand they love after just a single bad customer experience. Handled poorly, and a customer could be lost forever. Handled well, a moment of truth can foster loyalty and brand advocacy. And genuine emotional connections are key to whether companies will sink or swim during moments of truth. When emotions are running high, so are the stakes for brands. This is where moments of truth become really valuable – in emotionally impactful customer interactions. Third moment of truth: The tipping point where a loyal customer becomes an active brand advocate.Ī moment of truth in customer experience (CX) and customer service can have a slightly different interpretation, however.įor McKinsey & Co, it refers to any time when a person invests a “ high amount of emotional energy” in the outcome of a brand interaction.Second moment of truth: Once a purchase is made and the customer discovers whether a product or service meets their expectations.This is when marketers have the opportunity to convince the customer to buy their goods instead of another brand’s. First moment of truth: When a customer first encounters a product or service.In 2005, he claimed there were two moments of truth (with a third being added later by Pete Blackshaw – another P&G alumni): The term ‘moment of truth’ was first coined in marketing by AG Lafley, former Chairman, President and CEO of Procter & Gamble (P&G). What is a moment of truth in customer service and marketing First, let’s dig a little deeper into when moments of truth occur. So how do you spot a moment of truth? We’ll come to that. You can focus more on the moments that truly matter.
Focusing on the “moments of truth” means spending your time (and budget) on the most valuable parts of your customer journey. That’s why it’s as exciting as it is important to recognise and spend some time to hone in on these pivotal interactions. Moments of truth can forever change the relationship between a brand and its customer, for better or worse. It represents occasions where a customer’s interaction is so impactful that it alters their perception of the brand.
In marketing and customer service, the phrase ‘moment of truth’ has a similar meaning. They’re situations where people are put to the test or have to make a key decision that could change the course of their future. These are the type of make-or-break events in our lives that we commonly call ‘moments of truth’.
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