How many of you have heard of a concept called ‘Habit Stacking’?
It was a breakthrough method created by Stanford behavioural scientist, BJ Fogg.
He created it to overcome a big problem. We are good at intention.
“I will exercise more,” “I will get more sleep,” “I will drink more water.”
But we are poor at implementation. We don’t do the things that will help us exercise more or get more sleep or drink more water.
Habit stacking is based on a very simple formula:
After / before [current habit], I will [new habit].
He found that one of the best ways to build a new habit is to identify an existing habit that you already do, and then stack your new behaviour on top.
“On my way to the office, I will go to the gym.” “When I go to bed, I will leave my phone charging in another room.” “With every meal, I will have a glass of water.”
The reason habit stacking works so well is that our current habits are already ingrained. By linking a new habit to a current habit you are much more likely to stick to it.
Why are we talking about this? In the FMCG world we often have an “OR” mindset. What can you get shoppers to buy your product instead of?
Here you are fighting the share battle. For instance, trying to get shoppers to buy your drink instead of other drinks. It might help you grow share BUT shoppers are not going to buy more drinks. You’re substituting one purchase for another.
The bigger and better opportunity comes through having an “AND” mindset. What can you get shoppers to buy your product as well as?
Here you are fighting the growth battle. For instance, trying to get shoppers to buy your drink as well as other drinks. You’re adding one purchase to another.
“AND” purchases are incremental. Categories need incrementality. Retailers are looking for incrementality.
So, how can you drive more “AND” purchases?
First, you need to find the current habit that you want to attach to.
It could be an occasion. If you’re a mint, it might mean being eaten after every meal. If you’re a health shot, it might mean being drunk with the first cup of tea or coffee each day.
It could be a regime. If you’re a skincare product, it might mean being used after every shower. If you’re a fabric conditioner or scent booster, it might mean being used every time you wash your clothes.
It could be a meal. If you’re an ingredient, it might mean getting added to a high volume meal – think Spag Bol, Stir Fry. If you’re a fruit, it could mean getting added to cereal or yogurt.
It could be another product. If you’re Tuna, it could mean combining with mayonnaise and vice versa. If you’re a beer, it could mean combining with salty snacks and vice versa.
Second, you need to make it as easy as possible for shoppers to buy you.
It could be through adding. Think “add water for £x when you buy coffee.” Or “get a bottle of wine for £y when you buy steak or fish.”
It could be through bundling. Think “Detergent + fabric conditioner + scent booster for £x.” Think “pasta + sauce for £y.”
It could be through partnering. Think Alpro & Kellogg’s. Communicating in the plant based and cereal fixtures. Think Peroni & Kettle Chips securing shared feature space.
It could be through combining. Think Hellmann’s & Princes coming together for the “Ultimate Tuna Mayo Sandwich.” Think Nutella & Pancakes right now (& every year at this time).
Coca Cola are masters of this type of thinking. Every time a shopper buys a meal, they see an opportunity for them to buy Coke. Every time a shopper buys a snack, they see an opportunity for them to buy Coke. Every time a shopper buys a spirit, they see an opportunity for them to buy Coke.
True growth (category and brand) comes from incrementality.
Driving “AND” purchases not just “OR” ones.
What works for habits works for sales.
Feel free to forward. Have a great weekend. Speak to you in a fortnight.