Customer struggle, often viewed as a business challenge, presents a significant, frequently untapped, frontier for strategic growth and equity value creation. For private equity sponsors and portfolio company CEOs, understanding and addressing these areas of high customer effort is not merely about problem-solving; it's about identifying potent opportunities for innovation and revenue generation. This guide explores how, at thrv, we use Customer Effort Score (CES) data, integrated into our proprietary Jobs-to-be-Done (JTBD) methodology, as a precise instrument for monetizing customer struggle effectively, thereby accelerating growth in our portfolio companies.

Table of Contents

• Understanding Customer Struggle: The thrv Perspective
• Defining Customer Struggle through the Lens of Jobs to be Done
• The Critical Role of Customer Effort Score (CES)
• How thrv uses CES: Measuring Speed and Accuracy
• The Strategic Imperative: Why Monetize Customer Struggle?
• From Cost Center to Value Driver: A New Paradigm
• Driving Equity Growth in Portfolio Companies
• The Impact: Improved Customer Retention and Willingness to Pay
• thrv's Framework: Using CES Data for Monetizing Customer Struggle
• Phase 1: Identify High-Effort Job Steps with CES Data
• Phase 2: Quantify the Value Creation Opportunity
• Phase 3: Innovate Products that Resolve Struggle
• Phase 4: Structure Monetized Offerings
• Actionable Models for Monetizing Customer Struggle (Informed by CES & JTBD)
• Premium Solutions for High-Effort Job Steps
• Specialized Services to Accelerate Job Execution
• Advanced Product Features for Critical Customer Needs
• Ethical Monetization: A Core Principle at thrv
• Focusing on Genuine Value Creation
• Transparency and Fair Exchange
• Accelerating Growth: thrv's AI-Powered JTBD Approach
• Conclusion: Transform Customer Struggle into Equity Value
• Frequently Asked Questions (FAQs)

Understanding Customer Struggle: The thrv Perspective

To effectively monetize customer struggle, one must first accurately identify and comprehend it. At thrv, our approach is rooted in the Jobs-to-be-Done theory, which posits that customers "hire" products or services to get specific "jobs" done. Struggle arises when they find it difficult to execute these jobs quickly and accurately.

Defining Customer Struggle through the Lens of Jobs to be Done

Customer struggle isn't abstract; it's tied to specific actions customers are trying to complete. For instance, a customer isn't just "struggling with software," they are struggling to "calculate the projected revenue" or "identify integration errors." These are unmet customer needs. When numerous customers report high effort for particular job steps, these areas signify substantial struggle and, consequently, opportunity. Understanding these valuable customer insights is foundational to our approach at thrv.

The Critical Role of Customer Effort Score (CES)

Customer Effort Score (CES) measures the percentage of customers who report that it is difficult to satisfy a given step in their Job-to-be-Done. This difficulty is assessed based on three measurable criteria: the effort required, the speed of execution, and the accuracy of execution. A high CES indicates a significant unmet need—a point of friction where customers are expending undue time and energy. This is precisely where opportunities for monetized solutions lie.

How thrv uses CES: Measuring Speed and Accuracy

Our JTBD methodology uses CES to pinpoint where customers experience the most difficulty. We measure how quickly and accurately customers can get their job done. For example, a high CES for a job step like "determine the correct configuration settings" signals a prime area for innovation. By improving the speed and accuracy with which customers can perform this action, we create value that can be monetized. This focus on CES differentiates our method, moving beyond vague notions of dissatisfaction to concrete, measurable effort.

The Strategic Imperative: Why Monetize Customer Struggle?

Monetizing customer struggle is a strategic decision that transforms how companies approach customer needs and product development, directly impacting equity value.

From Cost Center to Value Driver: A New Paradigm

Traditionally, addressing customer issues has been viewed as a cost center. However, by identifying high-effort areas through CES data, our portfolio companies can develop premium solutions that customers are willing to pay for. This represents a strategic move from cost to revenue generation—a transformation we've implemented across our portfolio companies.

Driving Equity Growth in Portfolio Companies

For thrv, monetizing customer struggle is central to our mission: accelerating growth in our portfolio companies to create superior equity returns. Innovations that effectively reduce high customer effort scores not only solve problems but also create differentiated value. This value translates into stronger market positioning, increased customer willingness to pay, and ultimately, higher valuation multiples for our portfolio companies.

The Impact: Improved Customer Retention and Willingness to Pay

Reducing customer effort has a profound impact on business outcomes. When customers can execute their jobs quickly and accurately with a product, their loyalty increases. When our portfolio companies reduce customer effort through targeted solutions, we consistently see improved customer loyalty and increased willingness to pay. Companies that effectively monetize solutions to customer struggle often experience significant improvements in retention and revenue growth. Solutions that demonstrably reduce effort command a premium because they save customers time and resources, improving their own productivity.

thrv's Framework: Using CES Data for Monetizing Customer Struggle

Our systematic approach ensures that efforts to monetize customer struggle are targeted, effective, and aligned with overall growth objectives.

Phase 1: Identify High-Effort Job Steps with CES Data

The first step is the precise identification of customer struggle. We deploy CES surveys at critical touchpoints in the customer's job.

• Our AI-powered platform significantly accelerates the analysis of this CES data, identifying patterns and pinpointing specific job steps where a high percentage of customers report difficulty.
• We focus on understanding where customers are unable to achieve their desired speed and accuracy in executing their job. This data-driven insight is crucial for focusing innovation efforts.
  
  

Phase 2: Quantify the Value Creation Opportunity

Once high-effort job steps are identified, we assess the potential for value creation. This involves:

• Understanding the customer's willingness to pay to get the job done better, faster, and more accurately.
• Segmenting the market based on the intensity of struggle, allowing for targeted solutions. High CES segments often represent customers with a strong willingness to invest in solutions.
  
  

Phase 3: Innovate Products that Resolve Struggle

With a clear understanding of where struggle exists and the value of resolving it, our portfolio companies use our JTBD methodology to guide product innovation.

• The focus is on developing new features, services, or even entirely new products that directly address the identified high CES areas.
• For example, if CES data shows high effort to "integrate data sources," we guide the product team to develop a solution that makes this integration seamless and accurate.
  
  

Phase 4: Structure Monetized Offerings

The final phase involves packaging these innovative solutions into monetizable offerings.

• This could take the form of premium product tiers, add-on modules, or specialized service packages.
• The key principle we follow at thrv is that these offerings must provide clear, measurable value in reducing customer effort for specific job steps, justifying the premium price.
  
  

Actionable Models for Monetizing Customer Struggle (Informed by CES & JTBD)

CES data, analyzed through our JTBD lens, directly informs the types of monetizable solutions our portfolio companies can develop.

Premium Solutions for High-Effort Job Steps

When CES data reveals significant struggle with core job steps that are critical for the customer, offering premium versions of the product or service can be highly effective.

• CES Trigger Example: A high CES associated with the job step "diagnose system performance issues."
• Monetized Solution: An advanced diagnostics module with automated issue identification and resolution pathways, offered as part of a premium tier. This solution directly enables customers to "diagnose system performance issues" with greater speed and accuracy.
  
  

Specialized Services to Accelerate Job Execution

For complex jobs where customers struggle with specific expertise or time constraints, specialized, fee-based services can provide immense value.

• CES Trigger Example: A high CES for "configure the platform for enterprise-scale deployment."
• Monetized Solution: A paid "Enterprise Configuration Service" where our experts help customers "configure the platform" correctly and efficiently, ensuring optimal performance and reducing their effort.

Advanced Product Features for Critical Customer Needs

At thrv, we often find that customer struggle stems from products lacking specific capabilities needed to get critical parts of their job done effectively.

• CES Trigger Example: A high CES related to the need to "generate compliance reports automatically."
• Monetized Solution: Develop and offer an "Automated Compliance Reporting" feature as a paid add-on. This directly helps customers "generate compliance reports" with significantly less effort and higher accuracy.
  
  

Ethical Monetization: A Core Principle at thrv

Monetizing customer struggle must be approached ethically and transparently to build trust and long-term customer relationships.

Focusing on Genuine Value Creation

At thrv, we ensure that any monetized solution offers substantial, demonstrable value by significantly reducing customer effort related to a specific job step. The goal is not to exploit difficulties but to provide superior ways for customers to achieve their objectives. Our experience with portfolio companies confirms that the highest returns come from improving operations and customer experience through solutions that genuinely reduce customer effort.

Transparency and Fair Exchange

It is crucial to be transparent about what is included in standard offerings versus premium, paid solutions. Customers should clearly understand the additional value they receive for the additional cost. This ensures a fair exchange and reinforces the idea that the company is a partner in their success.

Accelerating Growth: thrv's AI-Powered JTBD Approach

At thrv, our proprietary JTBD method is significantly amplified by our AI-powered platform. This synergy is crucial for efficiently identifying and acting upon opportunities to monetize customer struggle.

• Scalable Insight Generation: Our AI capabilities accelerate the analysis of vast amounts of customer data, including CES feedback, to identify high-effort job steps much faster than traditional methods. This allows our teams within portfolio companies to generate deep insights in hours rather than weeks.
• Actionable Roadmaps: The AI doesn't just find problems; it helps translate CES insights and unmet customer needs into concrete, actionable product roadmaps. This ensures that product development is precisely targeted at resolving the most impactful customer struggles.
• Speed Advantage: This accelerated process gives our portfolio companies a critical speed advantage in developing and launching new products or services that satisfy customer needs more quickly and accurately, leading to faster monetization of these innovations.
  
  

By embedding AI within our core JTBD methodology, we ensure that monetizing customer struggle is not a one-off tactic but a continuous, scalable engine for growth and equity value creation in our portfolio companies.

Conclusion: Transform Customer Struggle into Equity Value

Identifying and monetizing customer struggle through the strategic application of Customer Effort Score data and the Jobs-to-be-Done framework is a powerful lever for growth. For private equity sponsors and portfolio company CEOs, this approach, as implemented by thrv, offers a clear path to developing innovative products and services that customers value and are willing to pay for. By focusing on reducing customer effort and improving the speed and accuracy with which customers can accomplish their jobs, we not only enhance customer loyalty but also build more profitable, resilient businesses with superior equity returns.

Are you ready to transform customer struggle into a strategic advantage for your portfolio company? Explore how thrv's JTBD software and platform can help you identify unmet needs and accelerate growth. Learn more about our approach at thrv.com or see our solutions for private equity.

Frequently Asked Questions (FAQs)

Q1: What is Customer Effort Score (CES) and why is it important for monetizing struggle?

A1: Customer Effort Score (CES) is a metric that measures the percentage of customers who report high difficulty in getting a specific job step done using a product or service. It's crucial for monetizing struggle because it precisely identifies areas of high customer effort—these are unmet needs representing opportunities to create and charge for solutions that reduce this effort, thereby improving how quickly and accurately customers achieve their goals.

Q2: How does Jobs-to-be-Done (JTBD) relate to monetizing customer struggle?

A2: JTBD theory helps define what customers are trying to achieve (their "job"). Customer struggle arises when they find it hard to complete steps within that job. By understanding the JTBD, companies can identify these difficult steps (often highlighted by high CES) and then innovate solutions that help customers get the job done better. Monetization occurs by offering these improved solutions as premium offerings.

Q3: Can monetizing customer struggle negatively impact customer relationships?

A3: It can if not handled ethically and transparently. The key is to ensure that any monetized solution provides genuine, significant value in reducing effort for a specific job step. If customers perceive that they are being charged extra for solutions to problems that shouldn't exist or for basic functionality, it can damage trust. However, when done correctly—by offering true premium value that helps customers achieve their goals more effectively—it can strengthen relationships.

Q4: What are some examples of monetizing customer struggle?

A4: Examples include:

• Offering premium support tiers with faster access to expert help for complex issues (high CES for "resolve technical problems").
• Providing specialized, paid training workshops for advanced product features that customers find difficult to master (high CES for "utilize advanced analytics").
• Developing and selling advanced product modules that automate or simplify tasks customers struggle with (high CES for "manage complex workflows").
  
  

Q5: How does thrv use AI in monetizing customer struggle?

A5: At thrv, our AI-powered platform accelerates the analysis of CES data and other customer feedback to quickly identify high-effort job steps. AI helps scale the process of translating these insights into actionable product roadmaps, enabling our portfolio companies to rapidly develop and deploy solutions that address specific customer struggles, which can then be monetized. This provides a speed and precision advantage in creating equity value.

Q6: What is the first step a company should take to start monetizing customer struggle?

A6: The first step is to systematically measure customer effort. Implement Customer Effort Score (CES) surveys at key points in the customer journey to understand where customers are struggling the most to complete their job steps. This data will provide the foundation for identifying opportunities.