The upside of disloyalty.

You don’t necessarily have loyal customers if you dominate a specific market segment. Instead, they buy your product because it is maybe cheap, recognizable, and easy to get. In other words, your marketing strengthens the habit of your customers to buy your products. However, if you look closely, you will notice that your customers may jump the ship quite often.

With a distinctive value proposition, a niche product usually only has a minuscule market share. One might expect that these customers are mostly repeat buyers and won’t bother with another product. Call them fanatics. However, that may only be true for a fraction of the time. The fact is, big brand disloyalty is just enough to keep the smaller ones in business. Customers know there’s always something better out there, and they need to try it now and then. 

We forget that, per definition, loyal customers refuse to buy another option although they understand that there’s always something more promising. It is the same with sport team supporters. So reward those that are loyal. Make them fanatics.

Bottom line: Customer disloyalty allows just enough customers to keep fringe brands in the business. When that happens, be ready to create a new habit.