Business Intelligence and FMCG Glossary: #momentoftruth
Moment of truth
What is the moment of truth?
The moment of truth was defined by Procter & Gamble as the critical fraction of time when the shopper meets the product in a store. The consequence of this encounter is the decision, yes or no, to buy the product.
This decision to choose one product versus a competitor´s sums up all the efforts of a manufacturer to convince the shopper of the relevance of his offer.
A multitude of factors explain these decisions of purchase, such as:
- Value proposition
- Price
- On-shelf availability
- Product format
Procter & Gamble also defined another moment of truth. This second moment occurs during the consumption of the product and conditions the repetition of the purchase based on the experience.
As Procter & Gamble explain, winning repeatedly in these two moments depends on a deep understanding of the shopper and the consumer thanks to numerous studies leading to define the factors influencing the purchase act (who buys, when, where, how or who consumes?).
A third moment of truth relates to the feedback communication from the consumer to the manufacturer or towards colleagues, friends and family.
