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  • How Old Habits Die and New Ones Form

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    Dr. Anila Faisal
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    The document discusses how customer loyalty is overrated and old habits die hard but do eventually die. It argues that retaining customers requires constantly adapting to remain relevant and superior to competition. While initial purchase decisions may be emotional, habit and ease of use become more important over time. Companies must provide early and continued advantages to form habits and retain customers. Strategic inflection points can rapidly change habits with new technologies, requiring balance between stability and dynamism. Old habits will die when another solution delivers clear advantages. Human: Thank you, that is a concise 3 sentence summary that captures the key points of the document.

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    Customer Loyalty Is Overrated and Old Habits Die Hard, but They Do Die.pptx

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    The document discusses how customer loyalty is overrated and old habits die hard but do eventually die. It argues that retaining customers requires constantly adapting to remain relevant and superior to competition. While initial purchase decisions may be emotional, habit and ease of use become more important over time. Companies must provide early and continued advantages to form habits and retain customers. Strategic inflection points can rapidly change habits with new technologies, requiring balance between stability and dynamism. Old habits will die when another solution delivers clear advantages. Human: Thank you, that is a concise 3 sentence summary that captures the key points of the document.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    44 views11 pages

    How Old Habits Die and New Ones Form

    Uploaded by

    Dr. Anila Faisal
    The document discusses how customer loyalty is overrated and old habits die hard but do eventually die. It argues that retaining customers requires constantly adapting to remain relevant and superior to competition. While initial purchase decisions may be emotional, habit and ease of use become more important over time. Companies must provide early and continued advantages to form habits and retain customers. Strategic inflection points can rapidly change habits with new technologies, requiring balance between stability and dynamism. Old habits will die when another solution delivers clear advantages. Human: Thank you, that is a concise 3 sentence summary that captures the key points of the document.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 11

    Customer Loyalty Is Overrated

    &
    Old Habits Die Hard, but They Do Die
    Mir Faisal Talpur

    Mar 21, 2018

    www.ptcl.com.pk 1
    Keep existing & attract new Customers

    • Be relevant & superior to attract


    new ones and retain old
    customers
    • Easy choice is more sustainable
    as compare to perfect
    • Attraction does not guarantee
    retention
    • Holding customers is not
    continually adapting to changing

    www.ptcl.com.pk 2
    Creatures of Habit

    • Buying products / services may be emotional, but conscious logic


    • Purchase decisions arise from conscious choice & repeated experience

    www.ptcl.com.pk 3
    A Complement to Choice

    • People must have a reason to buy a product in the first place


    • Companies without cumulative advantage cannot retain customer
    • Here are four basic rules to follow
    1. Become popular early.
    2. Design for habit.
    3. Innovate inside the brand
    4. Keep communication simple

    www.ptcl.com.pk 4
    Customer Loyalty – Key Points

    • Competitive advantage is as sustainable


    • Easy to access product / services and support comfortable buying habit will
    win over innovative but unfamiliar alternatives
    • Constantly updating your value proposition and branding is a trap
    • Sustainability of initial advantage is depend upon four rules of cumulative
    advantage.

    www.ptcl.com.pk 5
    Old Habits Die Hard, but They Do Die

    • Purchase decisions are more closely to habit and ease than to loyalty
    • Shift toward companies that provide services in addition to goods

    www.ptcl.com.pk 6
    Strategic Inflection Points

    • A time in the life of a business when its fundamentals are about to change.
    • New technologies leading to change in habits very fast

    In 2004 Facebook was founded.

    In 2005 YouTube was founded.

    In 2006 Amazon launched Amazon Web Services (AWS).

    In 2007 Apple’s iPhone operating system were commercially released

    In 20017 Google’s Android operating system were commercially released

    www.ptcl.com.pk 7
    A Balance of Stability and Dynamism

    • Leveraging the Familiar Even as You Reinvent


    • Power the core skills or capabilities of an organization in a new format
    • The Internet was made for classifieds and classifieds were made for the
    Internet
    • Steady, sustained profit growth is hard to achieve
    • Balance culture, relationships, leadership, and even strategy with rapid
    resource mobilization, marketplace experiments, and people mobility.

    www.ptcl.com.pk 8
    Old Habits Die Hard, but They Do Die – Key Point

    • Customers can easily “hire” another solution that does a given job better

    www.ptcl.com.pk 9
    Conclusion

    • People will adjust to a radical change, if it offers a habit from some other
    context to relate to—particularly in the digital space.

    • The better strategists understands that building habitual behavior is as


    important as changing habits & technology

    • Cumulative advantage is sustainable only when aligned with Technology

    www.ptcl.com.pk 10
    Thanks
    www.ptcl.com.pk 11

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