Rebranding destroys The Power of Habit

In the world of branding and business, customer loyalty is highly valued. Companies strive to promote loyalty in their customers, hoping that they will continue to repurchase and remain loyal to their products. However, according to behavioral research, there is something even more powerful than loyalty: habit. How can businesses harness the power of habit, and why should they be cautious when considering rebranding ?

Loyalty vs. Habit: The Hidden Force Behind Customer Retention

Loyalty is merely the tip of the iceberg, while habit is the 95% that lies below the water's surface. It is the subconscious telling you to do something again because it worked before. The modern idea of constantly changing and updating your brand to keep up with the changing times is actually detrimental to your brand. Why? Because it interrupts habit.

Have you ever found yourself reaching for a familiar product without even thinking about it? That's the power of habit at work.

The Emotional Dimension of Consumer Habits

Emotions play a pivotal role in shaping and reinforcing consumer habits. The emotional responses associated with the use of a product or service often drive the subconscious decisions that lead to habitual behavior. For instance, the joy of unboxing a new gadget, the satisfaction of a well-prepared meal, or the comfort of a favorite brand can all trigger positive emotions that reinforce habitual purchasing. Brands can capitalize on this by focusing on creating and enhancing these positive emotional experiences. This emotional connection not only strengthens the habit loop but also fosters a deeper, more personal relationship between the consumer and the brand. Therefore, understanding and catering to the emotional needs of consumers is a powerful strategy for brands aiming to cultivate strong customer habits.

Case Studies: The Impact of Habit on Brand Success

Tide Detergent: The Power of Cumulative Advantage

Take Tide detergent, for example. It has been around for 76 years and has what is known as cumulative advantage. Every time a customer uses Tide and gets the benefits they are looking for, Tide gains more cumulative advantage. This causes the subconscious to become more and more comfortable with the product, making it harder for the customer to switch to a new brand.

Era Liquid Detergent: Learning from Failure

When Procter & Gamble created a liquid detergent called Era, they originally launched it as a new brand, thinking that it needed a new identity separate from Tide. However, this was a complete bust, and Era never gained more than a fractional share of the market. It was only when they put Era in an orange bottle with the Tide logo on it that it quickly became the number one liquid detergent.

This example shows how important it is to capitalize on the power of habit when launching a new product or improving an existing one.

The Impact of Social Factors on Consumer Habits

Social factors significantly influence the formation and reinforcement of consumer habits. The opinions, behaviors, and approval of others often shape our own behaviors, including our purchasing habits. This is where the concept of social proof comes into play. Positive reviews, testimonials, and recommendations from friends, family, or influencers can validate and reinforce a consumer's decision to purchase a product or service habitually. Brands can leverage this by encouraging satisfied customers to share their positive experiences, thereby influencing potential customers. Additionally, the sense of belonging to a community or being part of a trend can also drive habitual behavior. For instance, the popularity of a brand or product among a certain group can motivate others within the group to adopt similar purchasing habits. Therefore, understanding and harnessing the power of social factors can be a potent tool for brands aiming to strengthen customer habits.

Strategies for Harnessing the Power of Habit in Branding

Keep the visual cues: Maintain the same colors, logo, and design elements to ensure customers continue to associate the product with their established habits.
Ensure consistency in the product experience: Changes to the product should not disrupt its core functionality or the way customers interact with it.
Connect improvements to the past: When making changes, build upon the product's history to create a sense of continuity for the subconscious.
Be cautious with rebranding: Weigh the potential benefits of rebranding against the risks of disrupting habits and losing cumulative advantage.

What changes could your business make to better harness the power of habit?

Engaging the Reader: Reflect on Your Own Experiences

Think about your own buying habits. What brands or products do you consistently repurchase without even thinking about it? How do these habits influence your perception of these brands, and how would you feel if they suddenly changed their logo or product design?

In Conclusion: The Importance of Habit in Branding Success

Understanding and leveraging the power of habit can greatly impact your business's branding success. By maintaining consistency in visual cues and product experiences, you can nurture strong habits in your customers, which ultimately leads to increased loyalty and long-term growth.

As you consider the future of your brand, remember to prioritize the preservation of habits and cumulative advantage. Instead of chasing the latest trends or making drastic changes, focus on incremental improvements that maintain the product's core identity. By doing so, you can create a lasting connection with your customers that drives continued success.

So, take a moment to reflect on your own business and its branding strategy. Are there any areas where you can better harness the power of habit to strengthen customer loyalty and improve overall brand performance?

Key takeaways

Habit is more powerful than loyalty: Habit is the subconscious force that drives customers to repurchase products they have used before. It is much stronger than conscious loyalty because it stems from the subconscious feeling of comfort and familiarity with a product. Constantly changing a brand to keep up with the times can be detrimental, as it interrupts habit and undermines the brand's cumulative advantage.
Cumulative advantage is crucial: When customers repeatedly use a product and experience its benefits, the product gains cumulative advantage. This leads to an increase in the subconscious comfort with the product, making it harder for the customer to switch to a new brand. Keeping a brand's visual cues and identity intact helps to maintain and build upon this cumulative advantage.
Preserve the brand identity: When making changes to a brand, it is essential to keep as much of the cumulative advantage as possible. This includes preserving the visual cues, look and feel, and operation of the product. Connecting improvements to the past helps create a link that the subconscious recognizes, ensuring that customers continue to feel comfortable with the product and maintain their habit of repurchasing.