The ICED Theory: Your Ally to Boost Infrequent Product Usage — Reforge

The ICED Theory: Your Ally to Boost Infrequent Product Usage — Reforge

Managing an infrequent consumer product can be a difficult task. The limited window of interaction poses challenges in terms of customer retention and acquisition. However, understanding the unique dynamics of infrequent products can help develop effective strategies for growth. This is where the ICED Theory (Infrequency, Control, Engagement, Distinctiveness) comes into play.

The ICED Theory provides a framework to analyze and grow infrequent products by focusing on four key dimensions: degree of infrequency, degree of control over the user experience, degree of engagement before, after, and during the transaction, and distinctiveness of the product.

Infrequent products, those with natural frequencies of less than quarterly, often face the challenge of being forgotten by users due to the low frequency of use. Many product and growth strategies are designed for frequent products and fail to address the unique needs of infrequent products. To overcome this, it is crucial to understand the user and the product within the limited duration of interaction.

One actionable advice for managing infrequent products is to establish a sustainable acquisition engine. Since the ability to retain existing customers is limited, attracting new customers becomes essential. This can be achieved by continuously understanding the target audience and adapting acquisition strategies accordingly.

Another challenge in managing infrequent products is conducting effective customer research. In transactional domains, uncovering pertinent pain points can be difficult due to their infrequent occurrence. However, by leveraging qualitative research methods and actively seeking feedback from users, it is possible to gain insights into their mindset during the hiatus between product uses.

Retention and lifetime value are also crucial considerations for infrequent products. Retention is conceptualized differently for infrequent products, as the time gap between transactions is wider. Predicting and measuring customer retention becomes more challenging. However, for products with predictable usage patterns, such as tax products used annually, retention can be easily measured.

Increasing the frequency of product usage is beneficial for infrequent products, as it enhances penetrability. This can be achieved by focusing on engagement, which represents how immersed users are during their interaction with the product before, during, and after the transaction. Engaging users through a complete and memorable experience can increase brand recall and drive customer acquisition or repeat acquisition.

Distinctiveness is also key for infrequent products. A unique value proposition makes a product stand out and increases brand recall. Products like Airbnb, with a distinctive offering, enjoy strong recall among customers and non-customers alike. On the other hand, non-distinctive offerings rely heavily on search engines and paid traffic for customer acquisition.

Taking a step back, let's explore the concept of product-market fit. For frequent products, retention is a measure of product-market fit. However, for infrequent products, market penetration becomes a more appropriate indicator. As the time gap between transactions widens, it becomes challenging to influence customers to engage with the product repeatedly. Referral loops may not be as effective, and market penetration becomes a crucial metric.

Infrequent products can be classified into two categories: those naturally immune to economic cycles and those that need to develop resilience. Products in domains like education, health, and taxes are naturally resilient to economic cycles. On the other hand, highly infrequent products with high order values are more susceptible to macroeconomic factors.

In conclusion, managing infrequent products requires a deep understanding of the unique challenges they present. The ICED Theory offers a comprehensive framework to analyze and grow these products by focusing on infrequency, control, engagement, and distinctiveness. By implementing strategies to increase penetrability, enhance engagement, and establish a unique value proposition, infrequent products can thrive in the market.

Three actionable advice for managing infrequent products are:

• 1. Continuously adapt acquisition strategies to attract new customers and compensate for limited retention.

• 2. Leverage qualitative research methods to uncover pertinent pain points and gain insights into user mindset during product hiatus.

• 3. Focus on creating a complete and memorable experience to enhance engagement and drive brand recall.