Customer loyalty is overrated

Question 1

Value propositions

Answer 1

First attracts costumers, but its not what keeps them coming

Question 2

Cumulative advantage

Answer 2

The layer that a company builds on its initial competitive advantage by making its offering an ever more instinctively comfortable choice for the customer.

Question 3

4 rules of cumulative advantage

Answer 3

1. Become popular early: Early share advantage matters – can use aggressive pricing strategies, free new product samples
2. Design for habit: the best outcome is when choosing your offering becomes an automatic consumer response, so design for that – keep consistent those elements of the product design that can be seen from a distance so that buyers can find your product quickly, make products fit in people’s environments to encourage use.
3. Innovate inside the brand: changes in technology or other features should ideally be introduced in a manner that allows the new version of a product or service to retain the cumulative advantage of the old.
4. Keep communication simple: The mind is lazy. It doesn’twant to ramp up attention to absorb a
   message with a high level of complexity