Customer friction is a huge part of running a biz.
How hard is it to engage a company to work with you?
Data-driven companies obsess over reducing this friction.
Mom-and-pop operators SUCK at this and itโs costing them millions.
Hereโs what Iโve learned ๐๐๐
1985 companies have a lot of friction.
Call them. Leave message. Wait. Guy may or may not call you back. Quote by phone or email. Scan signed contract.
A self storage facility we purchased recently had a lot of this.
Drive across town M-F 9-5. Spend 20 mins. Sign paper lease.
Get a physical key and lock. Drive back. Get your unit. Mail a check each month or stop by office with cash.
Owner charged $52 a month for a 10x10. Completely full.
We instantly setup software for online rental.
No phone call necessary. Rent a unit in 4 mins from your browser.
Sign lease online. Pay online. Upload photo of DL on phone.
Go straight to your unit 24/7. Type in gate key that was sent to you by text. Lock and key waiting in unit.
We can now charge $77 a mo for the same unit. $25 more. And we rent MORE units faster.
How significant is this?
That $25 increase per unit across the board turns out to be a 35% increase in revenue.
That takes revenue from $14k a month when I buy it to $18.9k a few months later.
An extra $58k to the bottom line over the course of 12 months.