Customer retention is significantly less expensive than acquisition, and as a result, keeping customers happy has become a hot topic.
TED, the viral think piece factory, has over 2,000 videos cycling the Internet. To simplify the matter, we hand-picked three fascinating talks that can help you improve your customer retention strategies.
These talks are guaranteed to inspire real business-altering approaches. Be it honing in on the data or a simple shift in design, these big ideas can be boiled down to practical solutions for the way you interact with your customers.
Malcolm Gladwell: Choice, happiness, and spaghetti sauce
In this riveting talk, Malcolm Gladwell, award-winning author of The Tipping Point, tells the story of a man named Howard Moskowitz, famous for the invention chunky spaghetti sauce.
Moskowitz came to a realization that eventually lead to a fundamental shift in how players in the food industry retained customers and grew their businesses: the democratization of taste.
He proved that by clustering data points into groups, rather than using a one-size-fits-all model, food manufacturers could make more people happier.
The lesson here is twofold: first, that there is no one way to treat all of your customers. What is true for pasta lovers holds across industries.
Second, humans do not always know how to explain what they want deep down. Embracing user analytics is the key to understanding your customers and how to keep them happy.
Joe Gebbia: How Airbnb designs for trust
Gebbia, co-founder of the shareconomy giant Airbnb, talks about his journey to success which hinged on large scale acceptance of a crazy idea: inviting strangers into your home.
Establishing trust requires the right amount of disclosure and communication. Using elements of design to promote trust on Airbnb’s platform, the business was able to overcome the stranger danger bias and flourish globally.
While Gebbia talks about convincing homeowners to trust strangers in their intimate spaces, the concept is applicable to any business-customer relationship.
Trust is critical for building customer loyalty in any line of business. Start with a personal connection: introduce yourself, communicate, and illustrate transparency.
John Maeda: Designing for simplicity
John Maeda, the former president of the Rhode Island School of Design and Laws of Simplicity author, talks about the yin-yang of complexity and simplicity, offering diverse and insightful examples from his life experiences.
He uses humor and beauty to juxtapose moments and objects that represent each end of the spectrum. Finally, he argues that the backbone of simplicity is about living a life with more enjoyment and less pain, inarguably true of all customers.
For software companies especially, customer retention can be closely linked to this idea. Product managers are constantly trying to balance a large breadth of features and functions with a streamlined and simple user experience.
Look for a way to maximize the complexity when it comes to benefits and employ simplicity when it comes to user experience is the answer to harnessing this design duo in the digital sphere.