Solving a problem, to create another problem.
Problems never go away. But that's a good thing for business.
Life is basically a never-ending stream of problems.
Everyday we chip away at a problem... and another pops up.
Marketers know this well: Every product exists to solve a problem.
- A car solves transport.
- A bag solves carrying things.
- A luxury bag solves... self-worth and identity.
Marketers sell their customers a story of a better life when their problem is solved – and then present their products as the solution.
But here's the twist.
Problems never go away. In reality, a product would solve a problem, only to create a new one.
You buy a Playstation to fix boredom. Now you don't have games. You buy games. Now you can't play with friends, because you only have one controller. So you buy another controller...
Welcome to business.
The best businesses anticipate new problems their product creates, and offer the solutions before the customer even thinks of it.
That's basically how upsells and cross-sells work. They're basically problem continuation strategies.
Basket analysis in E-Commerce
In e-Commerce, this idea shows us as basket analysis. Which items do customers frequently buy together?
The best product bundles contains something that solve the new problem created by the first product.
For example:
- Playstation + 2 controllers
- Laptop + bag + mouse
- Camera + extra batteries + SD card
The product solves a problem. A bundle solves multiple next problems. The brand that keeps building solutions to solve new problems their product create, wins.
Tomorrow, 19th Nov, we're going live with BRP E-Commerce Analytics to discuss basket analysis and E-Commerce revenue optimization strategies. This is a free must-join session if you sell on marketplaces (Shopee, TikTok, Lazada)