Do you ever pause and wonder about the accuracy of your memories? Memories, crafted from our experiences, influence our perceptions and decisions daily. But what if these recollections aren't as reliable as we believe them to be? The peak-end effect is a fascinating phenomenon that sheds light on how we perceive events and recall them later.
Unveiling the Peak-End Effect
Imagine checking into a luxurious hotel for a weekend getaway. Throughout your stay, the service is exceptional, the room is comfortable, and the amenities are top-notch. However, your experience peaks when you receive a surprise room upgrade with a stunning view of the city skyline. As your stay comes to an end, you are bid farewell with a personalized note from the staff and a small gift as a token of appreciation.
You are more likely to remember the euphoria of the room upgrade and the heartfelt farewell gesture compared to the overall quality of the service or the amenities provided. These peak moments and the positive emotions associated with them become the focal points of your memory, shaping how you perceive the entire stay.
This selective recollection phenomenon is known as the peak-end effect - a fascinating phenomenon that sheds light on how we perceive events and recall them later. We tend to disproportionately remember the most intense (peak) moments and the conclusion (end) of an experience. Research suggests that the emotional weight of these peak and final moments can override the overall duration of an event, influencing our memory of the entire experience.
Dr Daniel Kahneman is a Nobel prize-winning psychologist and widely regarded as the founder of behavioural economics, along with his colleague Amos Tversky. The peak-end effect is largely attributed to his work. Kahneman conducted a study in 1996 to assess how the peak-end effect would impact patients’ perceptions of colonoscopies. He found that patients consistently evaluated the discomfort of the procedures based on the intensity of the pain at the peak or worst moment and at the final moments of the procedure. Regardless of the length of the procedures or the pain intensity experienced, all colonoscopy patients recalled the pain of their procedures through peak events and the end.
“The peak-end rule is a psychological heuristic in which people judge an experience largely based on how they felt at its peak (i.e. its most intense point) and at its end, rather than based on the total sum or average of every moment of the experience.” - Daniel Kahneman
An Ancestral Hand-Me-Down
Our brains play a complex game with memories, prioritizing certain moments over others to create a cohesive narrative of our experiences. When it comes to the peak-end effect, the brain's focus on the peak and end elements reflects a survival mechanism deeply rooted in human cognition.
In evolutionary terms, vivid recollection of intense or critical moments – such as facing danger or savoring success – served as a survival advantage for our ancestors. These memories helped them learn from experiences, make quick decisions, and adapt to changing environments. Fast forward to today, our brains continue to prioritize emotionally charged memories, shaping our perceptions of past events and guiding our future actions.
Understanding the peak-end effect can offer valuable insights into our thought processes and behaviors. Consider how a challenging workday may be colored by a single positive interaction with a colleague or how a delightful vacation can be overshadowed by a disappointing last day. From everyday interactions to major life events, this cognitive quirk influences how we perceive and recall experiences.
Peak-End Effect in Hospitality
The peak-end effect is paramount in hospitality where the goal is to create a memorable experience. It doesn't take much to put this mental quirk to work. There are simple ways to create positive peaks and a memorable "goodnight kiss."
So much focus is often given to the beginning of an experience, and yet the end arguably has more of an impact. An interesting study conducted in 2002 showed that an unexpected ‘gift’ (in this instance, giving customers a mint with their bill) increased tips by 23%. Such a small gift helps to shift the focus from the check (transactional) to a sweet, thoughtful dessert (memorable).
This would go over even better if the customer gets a special treat like a truffle or small desert cup. These treats are far more elaborate than mints and the gesture makes them feel special. If you really want to craft a strong finish, present the sweet treat after the bill instead of with the bill. And thanking the guests by name ties it all up with a perfect bow.
Hoteliers often place a lot of importance on check-in to create a positive first impression and think nothing of the departure experience. Contactless check-out is preferred by many guests, but if the last impression the hotel makes is the invoice, they are missing a huge opportunity. Snacks or water for the road or surprise and delight gifts are simple ways to make the end of their stay memorable. Even just a personal and sincere "thank you" goes a long way.
Even the most mundane stops on the guest journey are opportunities to create memorable "peaks." Imagine turning the restrooms into a serene soundscape, maybe a seaside oasis with an ocean track and fun decor or a magical forest with sounds of nature and live plants. No one will expect that, and it's also likely that they will perceive the bathroom cleanliness and physical environment much more favourably. (Because a gross bathroom says a lot about the rest of the place.)
Understanding the power of the peak-end effect empowers hospitality businesses to look for opportunities to create memorable guest experiences that leave a lasting impression. Strategically designing peak moments throughout the guest journey and prioritizing farewell gestures with gifts, gratitude or a warm "goodbye" are great ways to create exceptional experiences and build brand loyalty.
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