Finance:Moment of truth (marketing)

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Moment of truth (MOT) in marketing, is the moment when a customer/user interacts with a brand, product or service to form or change an impression about that particular brand, product or service. In 2005, A. G. Lafley, Chairman, President & CEO of Procter & Gamble coined two "Moments of Truth".[1] A third was introduced later.[2]

Types of MoTs

  • First moment of truth (FMOT): When a customer is first confronted with the product, either offline or online.[3] It occurs within the first 3-7 seconds of a consumer encountering the product and it is during this time that marketers have the capability of turning a browser into a buyer.[4] Procter & Gamble describe the first moment of truth as the "moment a consumer chooses a product over the other competitors offerings".[5]
  • Second moment of truth (SMOT): When a customer purchases a product and experiences its quality as per the promise of the brand.[6][7] There can be multiple second moments of truth for every time the product is consumed (used),[8] providing the consumer with information for future purchases and for sharing their experience with the product/service.[citation needed]
  • Third moment of truth (TMOT): When consumers give feedback or reactions towards a brand, product or service, i.e., consumer becomes brand advocate and gives back via word of mouth or social media publishing.[9]
  • Zero moment of truth (ZMOT) is a term coined by Google in 2011,[10] it refers to the research which is conducted online about a product or service before taking any action, i.e., searching for mobile reviews before making a purchase. The Internet has changed altogether the way consumers interact with brands, products or services. This online decision-making moment is termed as ZMOT. According to research conducted by Google, 88% of US customers are researching online before actually buying the product.[11]
  • Actual moment of truth was identified by Amit Sharma, Founder & CEO of Narvar, to describe the new post-purchase experience gap created by the advent of online shopping, after a consumer has made a purchase but before they've received the product.[12]

Further reading

References

  1. ↑ Lafley, A. G.; Charan, Ram (8 April 2008). The Game-Changer: How You Can Drive Revenue and Profit Growth with Innovation. Crown Business. ISBN 978-0307381736. https://archive.org/details/gamechangerhowyo00lafl. 
  2. ↑ "Marketing: The 4 Moments of Truth [Chart - Heidi Cohen"]. 27 June 2013. http://heidicohen.com/marketing-the-4-moments-of-truth-chart/. Retrieved 12 March 2018. 
  3. ↑ Hyken, Shep. "The New Moment Of Truth In Business". https://www.forbes.com/sites/shephyken/2016/04/09/new-moment-of-truth-in-business/#4910f14938d9. Retrieved 12 March 2018. 
  4. ↑ "Examples of the First Moment of Truth (FMOT) in Digital Signage". https://www.wirespring.com/dynamic_digital_signage_and_interactive_kiosks_journal/articles/Examples_of_the_First_Moment_of_Truth__FMOT__in_Digital_Signage-832.html. Retrieved 12 March 2018. 
  5. ↑ "Procter and Gamble 2006 Annual Report". https://www.pg.com/en_US/downloads/investors/annual_reports/2006/pg2006annualreport.pdf. Retrieved 12 March 2018. 
  6. ↑ Marketing, On. "Google's Micro-Moment: Why It's A Game Changer For CMOs". https://www.forbes.com/sites/onmarketing/2015/04/09/googles-micro-moment-why-its-a-game-changer-for-cmos/. Retrieved 12 March 2018. 
  7. ↑ Digital Darwinism: Branding and Business Models in Jeopardy (Page 51,52) By Ralf Kreutzer [de], Karl-Heinz Land [de]
  8. ↑ Löfgren, Martin (2008). "Customer satisfaction in the first and second moments of truth". Journal of Product & Brand Management 17 (7): 463–474. doi:10.1108/10610420810916362. 
  9. ↑ "Marketing: The 4 Moments of Truth [Chart"]. June 27, 2013. https://heidicohen.com/marketing-the-4-moments-of-truth-chart/. 
  10. ↑ "ZMOT: Why It Matters Now More Than Ever". https://www.thinkwithgoogle.com/marketing-resources/micro-moments/zmot-why-it-matters-now-more-than-ever/. Retrieved 12 March 2018. 
  11. ↑ "The Zero Moment of Truth Macro Study". https://www.thinkwithgoogle.com/research-studies/the-zero-moment-of-truth-macro-study.html. Retrieved 12 March 2018. 
  12. ↑ Hyken, Shep. "The New Moment Of Truth In Business" (in en). Forbes. https://www.forbes.com/sites/shephyken/2016/04/09/new-moment-of-truth-in-business/#615c0d2538d9. 



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