What is a Moment of Truth and How Does It Impact Revenue?
A Moment of Truth, (MOT) is a “make or break” in a relationship with your customer. It is not just something that bothers or irritates your customer – it is an interaction that really matters to your customer. Did you get their bill correct? Did you answer their customer service question accurately? Do you say “thank you” for their business at renewal time? The key is that not all customer interactions or touchpoints are created equal and knowing which ones will have a positive or negative impact on your customers’ spending behavior is key for an actionable journey map.
What is a Pain Point?
A pain point is self-explanatory – it is an interaction when your customers are annoyed, upset, or inconvenienced by a person, technology or process. Did you make the customer hold on the phone for over 1 minute? Do you send too many marketing emails to your customers?
How do you know if a touchpoint is an MOT and/or a pain point? Let me give you an example of a few touchpoints to illustrate if these are MOTs or pain points or both.
You drive through Starbucks every morning to get your coffee on your way to work, you say hi to Rachel every morning when she hands you your coffee and the pastry you order. You also know that every morning you have to ask for a napkin so you don’t get pastry flakes all over your dress slacks. You know they never include a napkin due to their internal “environmental” policies, and you find it quite annoying that you have to ask every day for the napkin. Shouldn’t Rachel know to simply include the napkin with your order, or shouldn’t they change their policy to include a napkin with every food order?
Is this a Pain Point? Yes, it is a pain point. Is this a Moment of Truth? No. It is not an MOT because you continue to get your coffee every single day from this same Starbucks, knowing that you will experience this pain point. If it were an MOT you would have stopped doing business with them at some point.
Here’s another example. You have been going to Walmart for years, but last year they started checking receipts after checkout near the exit door. You were never asked to show your receipt until 6 months ago when the Walmart worker asked you for your receipt while you were on your cell phone with an important client and the worker physically stopped your cart demanding to see the receipt. This was very annoying and embarrassed you in front of your client. You haven’t been back to Walmart since that day.
Is this a pain point? Yes. Is this an MOT? Yes, because you discontinued doing business with that company.
How does an MOT affect revenue?
A Moment of Truth affects revenue because, for every MOT that is also a Pain Point, it is very likely that you are either losing an existing customer or a potential company or person decides to not become a customer and you lose the revenue from them. Some of our customers we have helped identify these MOT-PPs, analyzed how much money is either at risk or they have already lost. This is tremendously helpful for companies to visualize the revenue they are losing or never receiving all based on the touchpoints that are identified as MOT-PPs.
How do you resolve and manage MOTs?
The short answer is by building a framework that identifies touchpoints, MOTs, Pain Points, and most importantly MOTs that are also Pain Points (MOT-PP). This framework for identifying, capturing, analyzing, prioritizing, and managing these customer touchpoints is called a customer journey map. So creating and managing your customer journey map is of paramount importance that affects your company revenue.
When you can focus your company resources and people, and prioritize those MOT-PPs so that someone accountable takes action on a regular basis to improve them, you have very powerful changes taking place, making a real positive difference in the experience your customer delivers, and as a result of this, your customer retention and acquisition, and therefore revenue improves as well.