Why is it that some customers keep coming back, even without a discount or reminder? The key lies in habit formation. Understanding how habits work helps you as a brand to structurally increase customer loyalty. And with the right technology, you can even automate this.
In this article, you will learn:
- What habit formation is and why it is crucial for customer loyalty
- How to activate a “habit loop” as a brand
- Which triggers create repeat purchases
- And how a digital savings card supports this process
What is habit formation and why is it crucial for customer loyalty?
Habits are unconscious behaviours that people repeat in a recognisable context. Think of buying the same coffee every morning.
In marketing, you want your brand to become part of this cycle:
How do you activate the habit loop with your customers?
With the Habit Loop platform, you digitise the entire habit cycle - from trigger to repetition - fully automatically:
What are psychological triggers for repeat purchases?
Not every reward works. To sustainably influence behaviour, rewards need to psychologically match the customer's motivation. Consider:
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How does a digital savings card work in this process?
The traditional punch card is cumbersome and limited. Digital savings systems like Habit Loop give you control over data, speed and adaptability.
Benefits of a digital savings card:
- Real-time insight: you know exactly who is saving, when and for what.
- Automatic rewards: no manual intervention required.
- 1-to-1 communication: rewards are linked to the customer's unique phone number.
- Multi-touch campaigns: combine online and offline purchases in one loyalty campaign.
And perhaps more importantly, it works mobile-first, without requiring customers to download an app.
How do you measure whether loyalty behaviour really changes?
No optimisation without measurement. Use these KPIs to understand behavioural change:
- Return rates (return frequency)
- Time between purchases
- Conversion on rewards
- Inactivity after reward (valley effect)
- Savings rounds completed by customer segment
Habit Loop delivers this data in real time via dashboards or API links, allowing you to continuously drive and improve loyal customer behaviour.
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