The Peak-End Rule: Why IKEA has Cheap Hotdogs &🍦

Why Your Last Impression Matters More Than You Think

What if I told you that a mediocre three-hour experience with an amazing final five minutes would be remembered more fondly than a fantastic three-hour experience with a disappointing ending? Here’s to the Peak-End Rule. A psychological principle that’s making and breaking brands without them even knowing it.

“The food was mediocre, but the chef came out and personally served us dessert!”

Sounds familiar? That’s the Peak-End Rule’s effect. And it can either cost or make businesses millions.

During my time at Heineken’s direct to consumer startup, we obsessed over every detail of our customer experience. Yet somehow, customers weren’t as thrilled as our metrics suggested they should be. Then what hit us is the moment they would started to enjoy the beer the ordered, they didn’t. 

Why? 

We missed giving them a couple of key pointers. On temperature, pouring angle, type of glass. Once we did, massive change.

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The Peak-End Rule is a psychological concept developed by Daniel Kahneman that explains how people judge experiences based on their most intense moments (peaks) and how they end, rather than the overall duration or average quality of the experience. This rule is crucial in understanding customer experiences, as it highlights the importance of creating memorable peaks and endings in interactions with products or services. Brands can leverage this rule by identifying and enhancing the emotional highs and lows in customer journeys, ensuring that experiences conclude positively.

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People don’t judge by the average

So, here’s what you need to know: The Peak-End Rule reveals a fascinating bit of human psychology: people don’t judge experiences by their average, but they judge them by:

1. Their most intense moment (peak or valley)

2. How they end

Everything else? Your brain basically tosses it in the trash.

Think that’s crazy? Let me prove it: 

Think about your last vacation, got it? 
You recall the spectacular sunset and the nightmare flight delay, but what about day 4’s breakfast? 

Another one: your last restaurant visit? The surprise complimentary glass of Limoncello probably overshadowed any wait for your table. 

Another one (starting to look like DJ Khaled here): That work project? The team celebration following results that exceeded what was planned likely means more than the countless status meetings.

Screenshot from Ikea.com, Soft serve for just 0.75. And you can get it a 0% APR if you buy enough, haha.

Smart brands are already weaponizing this psychology: 

• Ikea engineers their store exits through cheap snacks 
  (positive end, that also leaves you with the idea that Ikea is cheap, which it really isn’t)

• Netflix auto-plays the next episode before credits roll 
  (avoiding negative end) 

• Apple’s unboxing experience creates an immediate peak

Why This Matters 

At Beerwulf, we discovered something interesting. Customers who had a smooth delivery experience were 67% more likely to order again. Even if they had small issues before. The Peak-End Rule is increasingly relevant in digital marketing and e-commerce, where customer experiences are often fragmented across multiple touchpoints. Using data analytics to identify and enhance peak moments, and designing experiences that conclude on a high note are more likely to also foster a bit of loyalty.

In a nutshell: The ending shapes everything.

How to Use It:

1. Map Your Peaks → What are your highest points? → Where do things go wrong? → When does it end?

2. Fix Your Endings • Make returns super easy • End meetings on a high note • Close projects with celebration

3. Create Positive Peaks → Surprise upgrades → Unexpected thank-you notes → Small, memorable moments

Now, you can’t control everything. But you can control these moments that stick. It makes people forget (how much) the price (hurt). They forget the wait. But they remember how they felt trying on their first pair of Wayfarers.

That’s the power of peaks and endings.

What’s your peak moment today?

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