By Jeanne Roué-Taylor
“People maintain habits until they don’t.” This quote from American economist Richard Thaler is the customer loyalty marketer’s credo and underpins one of the core ideas of loyalty marketing resource allocation—to stay on the winning side of customer habits, you need to nudge and encourage constant, incremental growth and relationship development, whenever and wherever possible. On the flip side, you also need to sound the alarm and swarm when it appears customers have changed their habits in ways that aren’t mutually beneficial.
Marketing and Satisficing
Marketers have come up with the term “satisficing,” which isn’t widely used but perfectly explains this idea. Satisficing involves producing decisions that are good enough given the constraints present in a situation.
Studies consistently show that people tend to select the first option that meets a given need versus searching for the optimal answer. For marketers, by ensuring that each and every decision has an option that is good enough, customer relationship inertia is maintained. Inertia is everything.
The Power of Inertia
There are plenty of situations where keeping a customer happy involves satisficing—keeping the inertia going—rather than offering every possible solution, even if that means the perfect answer isn’t available. Never underestimate the power of inertia in customer loyalty success. While inertia and loyalty are different concepts that shouldn’t be confused, the nudges, influences, and rewards of customer loyalty marketing are an excellent way to maintain inertia.
To learn more about the success factors in customer loyalty, check out our webinar on the topic: Nudges, Influences and Rewards Part 2: Must-know Factors for Success in Retail Customer Loyalty.