WHAT IS PRODUCT LOOP?
For any business to exist there exists an intrinsic interaction with the customers. For establishing a flourishing startup, understanding these businesses to consumer interactions holds a primary concern for any setup. These business interactions to engage and retain the customers constitute a ‘Product Loop’
In case of social networking sites like Facebook, these interactions could hold on daily basis but for a business like travelling agency, these loops are less frequent. But regardless, of the frequency, there is always a loop that exists within a process.
This article will give you some insights about the Customer retention formula #1 and “looping” process and how to imply the same in a contrived manner to help your business grow.
WHY IS STICKING TO “CORE LOOP” IS ESSENTIAL?
- Understanding of a core loop is an initial step for starting any product sales.To get a better hold of your product sales you need to identify the core loop and improve your business decisions accordingly.
- Let’s take the case of Flipkart for convenience. Flipkart began its process by selling books. The core loop involved in the process of selling online books involved is as follows:
FlipKart (seller) : I want to order online books -> Find Flipkart ->Search for books on Flipkart ->Check the availability ->Check the Price ->Place the Order-> Repeat - When you begin a startup you might have a lot of ideas and features, to begin with. For example, Flipkart later added Electronics to its industry but it began its business by selling e-books.
- Tracking down the major points and cutting down on some features which could be added later is a tricky process. That is what “spotting core loop” is all about.
- Prioritising the major product and developing a loop around it adds up to the confidence of the startup. Every other nice idea and feature can be added later once you have established the process.
- Some other examples of product loops for different business process:
MakeMyTrip : I want to book flights -> Find Make my trip -> Input the destinations and date ->Check for flights availability -> Check for the prices -> Fill your details -> Book flight and make payment
ENGAGE CONSUMERS IN YOUR LOOP:
- A customer will use your product only when required and hence to make it more beneficial you will have to keep adding features.
- For example, Flipkart expanded their business by adding electronics.By features to their product, they made sure that customers keep visiting their website.
- Sometimes customers might leave the loop for either they don’t like what you have to offer or probably they like what the competitor might have to offer.
- To keep customers coming back to check your product you can send them notifications and emails of the current sales.You can send them mails on festivals and events.
- In order to send a notification, you need to persuade a user to allow you to send them updates or notifications.
- You need to know your customer to send them a personalised message. For example, in case of Flipkart if you know that your consumer shops a lot of books, you can send them notifications regarding new book releases.
- So you can divide the whole section of society into different groups and send them notifications accordingly.
FROM PRODUCT LOOP TO GROWTH LOOP:
- Create personal bonding on emails which will make customers comfortable.
- Ask for constant feedbacks and conduct surveys. Apply those changes to your original loop
- You can buy pay to various social sites to advertise to more and more customers and hence adding profits.
- Viral Loops: You can create viral loops for your products where your consumers encourage other consumers to use the product.
- You can advertise your product on social sites with comments from already existing users which will create credibility for your product.
- You should build features in your product that makes sharing easier and faster.
- Also, you need to maintain a large set of data befitting each consumer.
ESSENTIALITY OF THE “LOOPING PROCESS”:
- Makes the whole process of launch into simplified organised steps.
- Diversified ideas could put you off track, but a core loop gets you back to the primary proposal.
- Customer engagement can be increased by keeping a track of feedbacks and modifying appropriate responses.
- Providing customer delights to gain more brownie points.
- Lastly, advertising your product using viral loops will help you in boosting and retaining the business.
KEY TAKEAWAYS FROM THE “PRODUCT LOOP”?
The key factors involved in a successful story behind any Loop are:
- Identifying the core loop in accord with your startup process is the initial critical baseline for any startup
- Every loop involved within the process should have a meaningful impact on the consumer.
- Frequency of the some of the loops is very less. Therefore, in order to entice more consumers business schemes should be discovered.
- Every now and then new features can be added in the core loop to sustain the growth of the business.
REPEAT:
Keep building product loops and perfecting it each time before moving on to the next one – Recipe for Success