Retention in the Times of COVID-19 — Reforge

Retention in the Times of COVID-19 — Reforge

"40 Years of Stanford Research Found That People With This One Quality Are More Likely to Succeed"

In the world of business and product development, retention is a key metric that can make or break a company's success. To create great retention, you need to build and deepen user habits over time. It's important to understand that habit building is a science, and there are various factors at play.

Users have motivations, cognitive and physical friction, rewards, and more that all contribute to habit building. However, it's crucial to remember that revenue retention is an output of usage. Focusing solely on revenue retention is a short-sighted approach. Instead, we should focus on improving the core inputs that drive retention: Activation, Engagement, and Resurrection.

In today's rapidly changing world, trying to keep everyone is not a sustainable strategy. As we continue to witness a shift in user behavior, it's more important than ever to identify and retain the marginal audience. By understanding whether the marginal audience is experiencing real value or only temporal value, we can make informed decisions about retention efforts.

One quality that has been proven to contribute to success is the ability to delay gratification. In a famous Stanford research study, children who were willing to delay gratification and wait for a second marshmallow ended up having higher SAT scores, lower levels of substance abuse, lower likelihood of obesity, better responses to stress, better social skills, and overall better scores in various life measures.

Delayed gratification is all about choosing the pain of discipline over the ease of distraction. The children who learned to wait for gratification developed a belief that waiting is worth it and that they have the capability to wait. This mindset is crucial for success in any field.

What's interesting is that the ability to delay gratification and display self-control is not a predetermined trait. It is influenced by the experiences and environment that surround an individual. This highlights the importance of creating an environment that fosters discipline and delayed gratification.

So, how can we apply these insights to improve retention and increase our chances of success? Here are three actionable pieces of advice:

1. Start incredibly small: When trying to build a new habit or improve retention, make the task so easy that you can't say no. By starting small, you eliminate the friction and resistance that often comes with bigger tasks. This makes it easier to get started and build momentum.

2. Improve one thing, by one percent: Success doesn't happen overnight. It's the result of consistent improvement over time. Instead of overwhelming yourself with big goals, focus on making small, incremental improvements each day. By consistently improving by just one percent, you'll eventually achieve significant growth and success.

3. Use the "Seinfeld Strategy" to maintain consistency: Comedian Jerry Seinfeld once shared his secret to maintaining consistency in his work. He would mark an X on the calendar for every day that he wrote jokes. The goal was to never break the chain of X's. This strategy can be applied to any habit or task. Find a way to track your progress and create a visual representation of your consistency. This can help you stay motivated and committed to your goals.

In conclusion, retention is a vital aspect of any business or product's success. By understanding the science of habit building and focusing on the core inputs of Activation, Engagement, and Resurrection, we can improve retention and drive long-term growth. Additionally, incorporating the ability to delay gratification and display self-control can significantly increase our chances of success. By starting small, making incremental improvements, and maintaining consistency, we can build the discipline and habits necessary for sustainable success.