Not all products have to be habit-forming. For instance, if you’re selling car insurance, there’s no need to form a habit. The problem is, when you don’t build a habit, you need some other competitive advantage. This could be intellectual property, economies of scale, a brand, or something else that sets you apart in the market. If you don’t build a competitive moat around your business, you’re going to be fighting the competition on price and features all day long. You drop your price, the competition drops theirs. You add an offering, the competition adds the same feature. All of these things cut into the bottom line. This is why habit formation is so valuable: it’s a sustainable competitive advantage. Take search engines for example. How often do you sit down and think about which company makes the best search engine? Never! When you need to know something, you just Google it! The reason Google owns the majority of the search engine market share isn’t necessarily because they’ve built a superior product, it’s because they’ve built a habit. #HabitFormation #Design #Offerings #Competition …see more