81% of Americans admit that they are creatures of habit. And 1 in 5 have not changed their routine in over 10 years. (https://swnsdigital.com/)
Routines are powerful aspects of the human condition. Although hard to get into (or out of), habits typically stick. So one of the best ways to increase the value of your brand is by having your product become a routine.
James Clear, of the book Atomic Habits, breaks down habits in the following way:
Cue - Craving - Response - Reward
Cue - Triggers your brain to initiate behavior
Craving - Motivational Force
Response - (The Habit) Thought or Behavior
Reward - Why you did it.
So how can we use this understanding of behavior to our advantage? By making your product a routine. Specifically, making your introductory product a routine.
Explanation by Example:
I have worked with many brands that sell both physical and digital products. But almost always, a big mistake is made when they first provide an introductory offer - they simply don’t provide enough.
Let’s look at two examples- Breakfast Bars and Marketing Analytics Software
Breakfast Bars:
Let’s assume you sell a delicious and nutritious breakfast bar that provides you with all of the nutrition you need each morning. Your average customer buys 30 bars per month because they eat one bar per day.
You are trying to expand your customer base and decide to run new customer acquisition campaigns. You sell a sample pack to those users who have never tried your product before. It contains five of your top selling flavors for only $10. You sell a ton, but you don’t get the retention you’re looking for.
So what’s the problem? - the quantity.
Clearly, knowing that you sell on average 30 bars per 30 days per customer, you can safely assume that your product has become those customers’ morning staple. So, the goal is to help new customers develop a similar habitual morning routine with your product.
Instead of selling a 5 pack sample pack, you should try selling customers a month’s supply. A 30 day variety pack for 50% off. Include marketing materials on how this product has replaced breakfast for thousands of customers!
By encouraging new customers to develop a routine, you are drastically increasing the likelihood of recurring sales.
Marketing Analytics Software:
With software, the power typically comes from taking a task that is time consuming and difficult and making it easier. But again, one major downfall with marketing software products is not providing enough time for customers to use the application during the trial period.
Let’s say we are selling marketing analytics software; software which cuts down the number of hours needed each week for a marketing director to produce a report for the CMO. Via a trial model, you decide to give access to the software for 7 days. You receive countless downloads, but retention is poor.
So what’s the problem? - the amount of time.
To increase the chances of purchase, you want to extend the trial period to at least 30 days. Make this software an essential part of the marketing director’s job. Allow him or her to realize the number of hours they’re saving each week by utilizing it. How each report is more detailed than previously. Give your customer a good month to make it part of their routine.
Making your product a routine is one of the best ways to grow your business and to increase customer lifetime value.
Now go and grow.
J
Recommended Apps:
The best way to ensure your routine products are purchased routinely, is to have a subscribe and save program. Recharge is a great option for setting up subscriptions.
The second most popular subscription application is Seal. With affordable options, Seal may be the best choice for you.
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