How to hook customers on products they rarely use
Larry Page, CEO of
Alphabet (the company formerly known as Google), has a quirky way of deciding
which companies he likes. It’s called “The Toothbrush Test.” When Page looks at
a potential company to acquire, says the New York Times, he wants to know if
the product is, like a toothbrush, “something you will use once or twice a
day.”
Page clearly
understands habits. But what if your product doesn’t pass his Toothbrush Test? Perhaps you’d like
people to use your product or service frequently, but it just doesn’t make
sense to do so.
Nir Eyal was hired
to present at a gathering of 700 real estate agents, some months ago; and the
MC made a gracious introduction, saying, “Now we’ll hear from Nir Eyal, an
expert on Consumer Habits. Nir is going to teach us how to make home buying and
selling into a habit!”
Opening, Nir had
said: “I’m sorry, there must have been some misunderstanding. There is no way I
am going to teach you how to make home buying and selling into a habit, because
it has no chance of ever becoming a habit.” Pronto!
He explained that
home buying and selling doesn’t occur nearly often enough to become a habit.
Furthermore, the very definition of a habit - a behaviour done with little or
no conscious thought - is the antithesis of the kind of overthinking that real
estate transactions inspire.
“Home buying and
selling can’t be a habit,” someone else said, but what if we make a habit of
doing something else related to home buying and selling?” Even infrequently
used products and services can keep customers hooked.
There are at least
two ways to build a habit around an infrequently used product: content and
community. But let us be very clear, not every business needs to be
habit-forming. There are lots of ways to bring customers back, and many
companies succeed without relying on the habit of customers.
These companies buy
advertising, spend money on search engine optimization, or open a storefront to
capture customers’ attention as they walk by. But traditional methods of
keeping customers engaged force businesses to rent space on someone else’s
website, search engine, or street corner. By contrast, owning a customer’s
habit is an asset that pays.
Content
So, how do
infrequently used products bolt on a habit-forming experience? The first way is
by making a habit of consuming great content. Create a site and app full of
articles and videos to form a content habit with potential customers.
Community
Another way
infrequently used products form a habit is by building a community. If you’ve
got a product people tend to buy just once a year, during Christmas for
instance, you might assume interest in such a product is nil for 11 months
of the year. For members of your Community, engagement with (and revenue from)
the seasonal product goes strong year ’round, and you can cultivate a thriving
community around your seasonal products by organising frequent gatherings and social
events and facilitating social interaction.
Monetization is a
Result of Engagement
When it comes to
designing products people love, far too many companies focus on getting
customers to check out instead of getting them to check in. There’s no doubt
that a frequently used product like Facebook or Snapchat has an easier time of
changing consumer habits. However, habits can still help companies that might
make a sale to consumers every few months or years.
Companies looking
to build consumer habits should remember that monetization is a result of
engagement - not necessarily the other way around. For a financial services
firm, a real estate agent, or a seasonal business, buying the product or
service might not be a habit - but creating related habits around content and
community can pay off in reputation, satisfaction, and sales.
Here’s the gist:
- Owning a customer’s habit is an asset that
pays you.
- But it is difficult (if not impossible) to
turn infrequently used products into a customer habit.
- Rather than trying to make the product
into a habit, infrequently used products should build
habits around the product.
- Too many companies focus on getting
customers to check out instead of getting them to check in.
- Building a content or community habit are two
ways to keep people engaged.
- Monetization is a result of engagement - not
necessarily the other way around.
By Nir Eyal, the Wall Street Journal
Bestselling Author of "Hooked: How to Build Habit-Forming Products".
He’s also a Public Speaker and Consultant who blogs
about the psychology of products.
Edited by ‘Dele Dele-Olukoju, Marketing Communication strategist and publisher of the online Marketing Communication Digest. He writes from Lagos, Nigeria. @deleolukoju +234 807 481 2389.
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