This term was coined by P&G in 2005. FMOT refers to the 3 to 5 seconds when a shopper notices an item in a retail environment (invariably due to the packaging interrupting the shoppers’ attention to prompt brand recognition) and makes a decision as to whether or not they purchase the item. The model comprises of three points of contact that are key to maintaining that brand or product preference in that moment.
The first contact point is a stimulus such as a TV commercial; a mention on a radio station; a magazine Lift-Out; Youtube video; an email; a banner ad etc. The second contact point involves the consumer visiting the store or searching the web to locate the product or service The third contact point is the moment the consumer locates the product either in the store or online. Regardless of whether there is only one brand or a range of brands, the consumer faces the First Moment of Truth.
The buying decision that they make will be influenced by their in-store or online experience.
According to Lecinski, consumers spend seven seconds in front of the shelf before they decide which brand to buy. It’s really important to gain the consumer’s attention at this critical moment.
Once the consumer makes their choice and buys the selected product, that person will go home to start using it. That moment of experience is called the Second Moment of Truth (SMOT), and it will determine the consumer’s brand perception and future buying decisions.
A good usage experience will most likely result in the consumer choosing the same brand when it comes time to upgrade and speak favourably of the product or service in conversation or online reviews. Source: Digital metrics playbook. Measuring your online branding strategies by Enrique Quevedo; Daniel Besquin and Michelle Read
Moments of Truth
“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, theFirst 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 conceptto 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 11.0). 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’, inExhibit 11.1, appears to be fairly strong.
Incidentally,Google coined the termzero 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.
Thesecond 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 offer the opportunity to build and strengthen arelationshipwith 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, captures the essence of SMOT.
Derived from consumer panel data, it is an indicator of the propensity of trialists to continue buying the brand, and is measured in the context of their total purchases of the category.
Exhibits 11.2 % of consumers who repeat bought brands ‘A’ and ‘B’.
Therepeat buyers %, depicted inExhibit 11.2, 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.