Many entrepreneurs fall into the trap of building products that are only marginally better than existing solutions. They hope their innovation will be good enough to woo customers away from existing products. But when it comes to shaking consumers’ old habits, these naive entrepreneurs often find that better products don’t always win—especially if a large number of users have already adopted a competing product. Harvard Professor John Gourville has stated, “Many innovations fail because consumers irrationally overvalue the old while companies irrationally overvalue the new.” For a new product to win out, it can't just be a little better. It has to be much, much better in order to escape customer inertia. Once customers have formed a habit of using a particular product or service, it doesn’t matter if a nominally better service comes along -- they won’t switch. This is why habit-formation is such a powerful tool in business. Habits give the competitive advantage of preventing competitors from snatching your customers away. #Hooked #HabitFormation #Psychology #Behavior #Design …see more