Jan 18, 2025
Episode Summary
In this episode of The Intuitive Customer, Colin Shaw and Professor Ryan Hamilton delve into the fascinating world of customer habits. Colin shares his recent experiences shopping at Publix, Aldi, and Whole Foods, uncovering how deeply ingrained habits shape our decisions as customers. The discussion explores the psychology behind habit formation, the challenges businesses face when trying to change customer routines, and the critical role of segmentation in addressing diverse customer needs. From grocery stores to TSA lines and even Apple’s onboarding strategy, this episode highlights actionable insights for businesses looking to influence customer behavior effectively.
Quote of the Episode
"Habits aren't unbreakable chains; they're shortcuts our brains take to save effort. If businesses want customers to change, they need to guide them gently and reward the new behavior."
Key Takeaways
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The Habit Loop
Habits consist of three components: cue, routine, and reward. Businesses need to understand these elements to create or change customer habits effectively. -
Transition Requires Support
Customers resist change when new experiences are disorienting or unclear. Offering onboarding tools, clear signage, or guidance (like Apple’s tutorials or TSA’s segmented lines) can ease the transition. -
Segment Rewards
Customers value different rewards. Some prioritize savings, while others value time or convenience. Understanding and tailoring offerings to these preferences can make all the difference. -
Habits vs. Exploration
While habits streamline decision-making, they can inhibit discovery. Striking a balance—like Amazon’s recommendation engine—allows businesses to support habitual purchases while encouraging new ones. -
The Power of Familiarity
Familiarity offers comfort and efficiency, making it a strong motivator for customers. Businesses need to weigh the risks of disrupting established habits against the potential benefits of change.
About the Hosts:
Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience, Shaw is a sought-after keynote speaker. Follow Colin on LinkedIn.
Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press Follow Ryan on LinkedIn.
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