I highly recommend any marketer charged with driving growth in consumable products or driving traffic in a specific channel, whether it is a website, app or storefront read Hooked by Nir Eyal. Nir argues that Habit is quickly replacing classical marketing, especially in high frequency purchases. The power of Habit works very well in technology based consumer actions, such as Facebook, Pinterest or Candy Crush, but it also works exceptionally well in regular purchases, for example, purchasing a morning cup of coffee. Additionally, how much thought do you typically put into which market you are going to shop in this week or which station you will take your car to the next time it needs work?
Nir lays out a process for increasing the likelihood of creating Habits that reinforce your customer purchasing from you. These are: 1.) Trigger, 2.) Action, 3.) Variable Reward and 4.) Investment.
Over the next several points, I’ll be talking about Nir’s process in more detail.
Think about purchasers of your product or service. Not Your customer but all the customers of your product being service by you, by your competitors or not being serviced by anyone. In the simplest terms, all of these customers will be considering a combination of four factors: Price, Product, Place and Promotion. You and each of your competitors will have relative strengths in the combination of those factors. One a grid, write product, price, pace and promotion across the top. Down the side, list you and all of your competitors as well as list unsatisfied. In the grid, you can then rank how each of you are succeeding in each of the 4 P’s. Are you where you want to be? For example, if your unique selling proposition is mid-level price with superior quality and features at somewhat remote locations to keep the cost down, is that where you rank on the grid? On each feature, you should be, at least, where your unique selling proposition has placed you. Perhaps better. Then again, if your rank is better than planned, you may want to either reconsider your plan or adjust your marketing to return to plan For example, if your unique selling proposition is to be mid-priced and you are ranking as a low priced provider, your business may profit by raising prices.