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Habits Matter, Not Customer Loyalty

Posted by Jody Urquhart on Wed, Jan 18, 2017 @ 12:34 PM


funny motivational leadership speakerIn his insightful Harvard Business Review podcast, leadership speaker, Roger Martin of Rotman School of Management suggests that humans are driven by comfort and familiarity. He further argues that people are not loyal to a brand or organization, but they use a product or service out of habit. 

People consistently make buying decisions because its a part of their routine, and it's become a habit. Thus, the guest speaker suggests that it's not necessarily that devote customers are loyal to a product but they like the familiarity of it. 

In fact, it's hard to break the habit of using that product, so they continue using it, even when the price increases

Martin suggests four things to consider to build habits with customers:

1) Get in early. If you trail-blaze ahead of the competition, you get the mindshare of the client from the get go.

2) Design for the habit. Make it easy for people to use the product, so it doesn't disrupt their lives too much on the way to cementing habits.

3) Innovate carefully and don't change too quickly. Customers resent forced changes that make them dive into the unfamiliar and inconvenience them to integrate the change. To change, take small steps and don't disrupt people's patterns too much. 

4) Keep communication simple. Show the customer step by step what you want them to do.

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