The Ramifications of The Peak-End Rule for SaaS Businesses

In the early 90s, a team of researchers set up an experiment involving subjects putting their hands in cold water for variations of time. After both rounds, the participants were given a choice of which trial to repeat, the 60 seconds or the 90 seconds. Those reactivated customers spend an average of +11% more the second time around. While you have a 20-40% chance of winning back a former customer, you only have 5-20% of converting a prospect. If you make that final experience feel like a trip to the DMV, you face the real possibility of a customer posting a negative review about your business.



The Ramifications of The Peak-End Rule for SaaS Businesses
Source: Pinay Tube PH

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