Growing Smarter: Art of Retention & JTBD Framework !

Welcome to This Week's Edition!

It’s Tuesday and that means fresh insights to fuel your startup journey. Today, we’re diving into Growth tactics, how retention on existing customers is sustainable growth and why understanding customer’s POV can lead to higher sales. Settle in, and let’s get to work on building the next big thing. 🚀

Table of contents -

1. Mastering the Art of Retention

2. JTBD Framework

Marketing & Growth Tactics: Mastering the Art of Retention Marketing

Growth isn't just about acquiring new users—it’s about keeping the ones you’ve already won. Retention marketing is often overlooked, but it’s one of the most cost-effective ways to drive sustainable growth. Let’s break it down:

Why Retention Matters

• Cost-Effective: Acquiring a new customer is 5–7x more expensive than retaining an existing one.

• Revenue Multiplier: Increasing retention rates by just 5% can boost profits by 25–95%.

• Brand Advocacy: Loyal customers are more likely to recommend your product, bringing in new users organically.

The Secret Weapon: Personalized Communication

Companies like Duolingo and Notion thrive because they prioritize engaging their existing users.

• Duolingo’s Retention Tactics: Gamified streaks, tailored emails like "We miss you," and notifications that feel like a nudge, not a push.

• Notion’s Approach: Highlighting user milestones and showcasing new features to keep users engaged.

Retention Funnel :

1. Analyze Drop-Off Points: Where are users churning? Fix the gaps.

2. Engage Continuously: Use email campaigns, push notifications, or in-app messages.

3. Incentivize Loyalty: Offer perks, rewards, or exclusive content to keep users coming back.

Focus on turning one-time users into lifetime advocates. After all, growth is not just about scale—it’s about sustaining what you’ve built.

Product Development & Innovation: The “Jobs to Be Done” Framework

Building a product people love starts with understanding one core question: What job is your product hired to do? This approach, popularized by Clayton Christensen, shifts the focus from features to outcomes.

What Is the “Jobs to Be Done” (JTBD) Framework?

It’s about uncovering the functional, emotional, and social needs your users want to solve. Instead of asking “What do users want?” ask:

• What problem are they trying to solve?

• What motivates them to use our product?

Real-World Example: McDonald's Milkshakes

McDonald's once discovered that customers were buying milkshakes not for dessert but to make their commutes less boring. By understanding the “job,” they made the milkshakes thicker for longer sipping, leading to higher sales.

The chart shows the impact of the "Jobs to Be Done" (JTBD) insights, highlighting the shift in sales distribution between morning and afternoon buyers.

How to Apply JTBD to Your Startup

1. Talk to Users: Ask open-ended questions about why and when they use your product.

2. Identify the “Job”: Pinpoint the underlying problem or desire your product solves.

3. Refine the Experience: Make your product better at solving that specific job.

The JTBD framework ensures you’re not just building features but delivering solutions that truly resonate with your audience. Start with this question for your team: “If our product didn’t exist, what would our users do instead?”

That’s a wrap for this week’s edition! 🚀 the journey of building something impactful is a marathon, not a sprint. Stick with it, and together, we’ll keep navigating challenges and uncovering opportunities.

See you on Thursday for more insights, and don’t forget—every other Sunday, a deep-dive case study awaits to inspire and inform your startup journey!