Maximizing Growth for Infrequent Products: A Combination of ICED Theory and the Community Playbook

Maximizing Growth for Infrequent Products: A Combination of ICED Theory and the Community Playbook

Introduction:
In today's fast-paced market, companies with frequent products have an advantage when it comes to building customer habits and achieving growth. However, for products that are infrequent and have longer gaps between transactions, the challenges are different. In this article, we will explore the ICED Theory - Growing Infrequent Products and the Community Playbook, two frameworks that can help businesses address these challenges and craft a growth-oriented approach.

ICED Theory - Growing Infrequent Products:
The ICED Theory focuses on four key factors that influence the success of infrequent products: Degree of Infrequency (I), Degree of Control Over the User Experience (C), Degree of Engagement Before, After, and During the Transaction (E), and Distinctiveness of the Product (D).

Degree of Infrequency:
Infrequent products are more likely to be forgotten by customers due to the low frequency of use. This factor informs important business decisions such as monetization and the cost of traffic acquisition. Understanding the infrequency of your product can help you tailor your strategies accordingly.

Degree of Control Over the User Experience:
Having control over the user experience is crucial for infrequent products. By providing a seamless and effortless experience, you can reduce the perceived effort for customers, ultimately reducing churn. Focus on minimizing complexity, increasing touchpoints, and ensuring predictability of retention.

Degree of Engagement Before, After, and During the Transaction:
Engagement plays a vital role in infrequent products. Higher engagement leads to customer loyalty, whether it's through retention or advocacy. Invest in creating engaging experiences before, during, and after the transaction. Look for opportunities to build a relationship with your customers and provide value beyond the product itself.

Distinctiveness of the Product:
In a market saturated with options, being distinctive is essential for infrequent products. Lack of distinctiveness coupled with the infrequency of transactions can strain customer acquisition. Find unique selling points that set your product apart from competitors and communicate them effectively to your target audience.

The Community Playbook:
Measuring the financial impact of a community is crucial for justifying investment and holding the community function accountable. By implementing a Community Return on Investment (CROI) calculation, businesses can quantify the incremental financial value gained from community-related activities.

Measuring CROI:
There are various ways to measure CROI, depending on the specific goals of the community. For example, tracking the number of attendees at community events can serve as a key performance indicator. Analyzing the behavior of attendees can provide insights into their engagement and conversion rates, ultimately linking community activities to sales metrics.

For existing members, measuring CROI might require a more subtle approach. For subscription-based businesses, comparing the churn rates of active community members versus those who do not participate in the community can highlight the impact of community engagement on customer retention.

Community's Financial Impact:
Communities can have a significant financial impact on businesses. They can help increase the sales pipeline by attracting potential customers and nurturing leads. Additionally, communities can contribute to higher deal sizes as customers become more engaged and invested in the product. Answering support tickets within the community can also reduce support costs and improve customer satisfaction. Finally, communities provide valuable feedback and insights that can be used to add features or capabilities to products, enhancing their value proposition.

Actionable Advice:

1. Prioritize engagement: Invest in creating engaging experiences for your customers before, during, and after transactions. This can include personalized interactions, exclusive content, and rewards for loyalty.
2. Build a distinctive brand: Stand out from the competition by highlighting the unique aspects of your product and communicating them effectively through branding and marketing efforts.
3. Measure and optimize: Implement a robust measurement framework to track the financial impact of your community. Continuously analyze the data and make informed decisions to optimize your community programs and activities.

Conclusion:
By combining the ICED Theory and the Community Playbook, businesses with infrequent products can overcome the challenges they face and achieve growth. Understanding the degree of infrequency, controlling the user experience, fostering engagement, and building a distinctive brand are crucial steps towards maximizing the potential of infrequent products. Additionally, measuring the financial impact of a community can provide valuable insights and justify investment in community programs and activities. Implement these strategies and leverage the power of communities to unlock growth opportunities for your infrequent products.