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Create a Product Quadfecta And Watch Retention Sky Rocket

I thought I’d share a simple idea that when applied has exponential results on client retention and product advocacy.

Everyone has problems and everyone, often without really thinking about it, is searching for solutions to those problems.

I need coffee every morning, I also need something healthy to eat. The coffee shop that solves both of these problems gets my attention and my money. But I have other problems in the morning: I need to be really well hydrated for the day, I need another healthy snack mid-morning, I need to make my kid’s lunch, I need to remember to take my supplements, I need to exercise, I need my phone charged, I need a washroom. The list is exhaustive.

Retention is exponential to the degree of Moore’s Law: as the number of problems you solve for the consumer increases so does the strength of the relationship.

I want you to think about this in two ways. First, there’s the individual parts of a transaction that need solutions: how your product is found, contacting you, purchase, client service, payment, warranty, etc. Each part of the transaction is a problem needing a solution. Second, there is the problem you are hired to solve.

You’re not in business to exchange a good or service for money. Your product or service is hired or purchased to solve a problem. If you are a restaurant you are not in the food business, you are in the energy business. As a specific example, Car2Go is not in the car sharing business. They are in the business of getting someone from point A to B since that’s what people hire their cars to do.

It’s pretty easy to solve one or two problems for a consumer. It’s easy enough to sell someone caffeine and a healthy snack, a real estate agent helps you buy and sell your property, and the corner store sells you food basics and has an ATM – they are killing two birds with one stone. But it’s when the coffee shop adds boxed lunches that are ready at 8 a.m., the real estate agent who handles the movers, and the corner store that adds dry cleaning drop-off that customer retention and advocacy go up.

The real game changer is when you can solve four problems in one stop. We’ve seen the telcos and cable providers do this with internet, cable tv, cell phone, and now home monitoring all on one bill. Grocery chains added pharmacies, clothing, banking, and drycleaning.

As I suggested above, you need to look at achieving the transaction quadfecta and then duplicate to other problems that need hiring. Lyft helping you get from A to B solves four things transactionally: knowing when your ride will show up, painless payment, notifying someone of your arrival, and having the ability to give feedback and rate the driver. None of this was available with traditional taxis that got you from point A to B. So they solved the four major problems of the transaction and like other ride sharing apps their retention went up dramatically. Now, can they apply the system to three more problems. Local package delivery, grocery delivery, and liquor delivery perhaps.

SoFi figured it out. They started with student loan refinancing and quickly started solving other important problems for Millennials: mortgages, personal loans, life insurance, and now wealth management.

When I take my car in for service, even just for a simple oil change, they also wash it. Two problems solved, but I sit there twiddling my thumbs trying to solve problems on my own while they service my car. Ninety minutes where they could be solving all kinds of problems. I always have a phone problem, what if Samsung or a Verizon kiosk was set up inside the dealership?

Go for the quadfecta and watch the strength of your advocacy skyrocket and your retention rise exponentially.

 

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