Exhibit 11.1 The first moment of truth: Will she
pick up the new product and place it in her cart?
Exhibits 11.2 % of consumers who ever bought brands ‘A’ and ‘B’.
In the case of ‘B’ some trials were induced by the sampling exercise in Dec
Y1.
“We have 50,000 moments of truth every day.” — Jan Carlzo,
CEO SAS (Scandinavian Airlines System)
Group from 1981-1994 referring to every time an SAS employee came into contact
with a customer.
In consumer markets, the First
Moment of Truth (FMOT) is often described as the shopper’s first encounter
with the brand in-store. There are many moments that lead to this moment — these
are the times the consumer initially gets to know the brand. It encompasses the
moments she sees the brand on TV, or online, or some other medium; or when she
hears about it from a friend. These moments convey the product concept
to her, and craft her first impression. They generate appeal or the
desire to experience the product, and determine whether or not she will try it.
The encounter in-store, the moment of truth, is the culmination of these
moments; it is where the brand has to close the sale (Exhibit 11.1). Will she
pick the brand up and place it in her cart?
A good indicator of a brand’s performance at its
first moment of truth is the trial rate. Drawn from consumer panel data, the
build-up of trial for the two brands labelled ‘A’ and ‘B’, in Exhibit 11.2,
appears to be fairly strong.
Incidentally, Google coined the term
zero
moment of truth (ZMOT) to refer to the moments before the first, when the
consumer searches for products that may or may not exist. By tracking their
online behaviour, marketers are able to gauge what consumers are seeking. This
is particularly useful information for spotting market trends and gaps, and for
generating ideas and insights for new products.
The second moment of truth (SMOT) occurs when the consumer uses the product. Product experiences shape her views
about the brand, and determine whether she will continue to use it, whether she
will adopt it. This collection of moments offers the opportunity to build and
strengthen a relationship with the consumer,
to delight her and to keep her engaged.
The repeat buying rate (RBR),
which is defined later in the TRB Share Prediction model, embodies the essence of
SMOT. Derived from consumer panel data, it is an indicator of the propensity of
trialists to continue buying the brand, relative to their overall purchases in the category.
Exhibits 11.3
% of consumers who repeat bought brands ‘A’ and ‘B’.
The repeat buyers %, depicted in Exhibit 11.3,
is also an indicator of the success of a brand at the SMOT. It measures
the proportion of trialists who repeat purchase.
Consumer goods companies devote considerable time,
resource and attention to appeal to the hearts and minds of consumers so that
they may powerfully influence them when they seek to find the product (ZMOT),
when they initially encounter it (FMOT), and when they actually experience it (SMOT).
For business marketing firms, it is the touchpoints with their customers that represent their moments of truth. Whether it is the
customer’s interaction with the firm’s product or service, or with the
employees of the firm, the experiences offer opportunities to build the firm’s
brand equity.