Changing User Behaviour

Changing User Behaviour

I am currently reading the book Hooked, and happened to read something very important. I shared the excerpt with a design thinking group I am administrator of. The snippet read:

John Gourville, a professor of marketing at Harvard Business School, stipulates that “many innovations fail because consumers irrationally overvalue the old while companies irrationally overvalue the new.”

Nir Eyal

A recent member of the group asked if I could share examples of this.

I said any attempt by a company to break a customers habit toward a competitors product/service, is an example.

This concept needs to be looked at in context of a larger concept of value.

The book says that a product/service attempting to break an existing customer habit must offer 9-times more value than what the customer currently derives from something existing that he/she is habituated with.

One of my favourite examples, that I used in my book, is about keyboards. Interestingly, I found the same example cited in Hooked. This is about the QWERTY keyboard almost all of us are hugely familiar with. And the example of another product that attempted to replace it.
The QWERTY is a very old design. Early 1870s to be exact!

Along the way, a psychologist invented a keyboard called the Dvorak keyboard. After studying usage, he rearranged keys on his keyboard to increase typing speed. What was different, was that the most frequently used keys were put closer together and in the center. A user would spend less time moving to frequently used keys, which were now closer together. Thus Dvorak rightly claimed a significant improvement in typing speeds for anyone who used this new keyboard.

Want something that helps us improve our typing speed?
Sounds like a no-brainer, right?

Learning to use a differently-arranged device should not be too tough for humans from an ability point of view. Surprisingly, the Dvorak keyboard never really took off.

The Dvorak keyboard: image source

Look at the Dvorak keyboard in context of the above 9x benefit. Perhaps the benefit it offered was not high enough for users to leave an old habit (Qwerty). And learn a new one.

To wrap it up… The new guys are like Dr. Dvorak and team. They assume a better product that needs users to do things differently will be an instant success. What they don’t realize, is that users need to see a disproportionately high benefit first. It takes a hugely great product solving a pressing problem, to make customers learn a new way to do something. Little else incentivizes them enough. And in context of more recent startups, it takes astronomical amounts in funding to tempt users to change a behaviour. And that too with no guarantee they will still be around when the offers and freebies stop.

If you own, manage or work at a company, and innovation, strategy, problem-solving, and customer experience management are areas of interest, there are ways in which I can help your business grow. More on it here.

And you might find my book, ‘Design the Future’ interesting. It demystifies the mindset of Design Thinking. Ebook’s on Amazon, and paperbacks at leading online bookstores including Amazon &Flipkart.

What Inspires Your Startup?

Along their entrepreneurial journey, some entrepreneurs constantly think of better and simpler ways to describe their business. This is an evolutionary process, as their business model undergoes refinement. So, when they meet new people or investors, they can often quickly describe what their startup exactly does.

Then of course, there are others, who build their business identical to another already-successful startup. Or, their business model is similar to a successful startup in another domain.

While taking inspiration from innovative businesses is one thing, it is dangerous if you only look that far. It is amusing and unimaginative to hear things like, ‘my startup is an Uber in the ABC industry’. Or, ‘ours is an Airbnb’d Samsung.’ Wait what!

Or the fact that Ola has invested/committed a little fortune towards the acquisition of food delivery service Foodpanda’s India business from DeliveryHero to be able to compete with UberEats. While Uber would have understood (hopefully) a customer need, and worked to build it into their business model and possibly the very soul of what they do, seems like Ola simply reacted and followed suit. Something that could prove disastrous in the long term, considering all the financial burden Ola already bears.

But there is a deeper concern. While your business or the revenue model takes inspiration off of another business, it can lead to a short-sighted strategy approach. Because your focus remains that startup or company you take inspiration from. You might not have much of an idea about where that company is getting is inspiration from, and therefore innovating toward.

For instance, am sure a lot of startups must have taken inspiration of some sort or the other, from Netflix, a visionary entertainment company. But who would have guessed, till when its co-founder and CEO, Reed Hastings announced that Netflix doesn’t exactly compete with the likes of Amazon, but rather with with their customers in general, and specifically with their customer’s sleep. How cool was that!

Which means Netflix has far greater clarity on present and future strategy, compared to companies who are simply modeling their growth strategy based on what they see or read about Netflix.

It completely transforms how you see the customer and therefore, how you evolve and grow. Better than being reactive with something like, “Prime’s launching a show around XYZ, what can we do ASAP!”

What inspires your startup?

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Sharpen your Business Focus

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When starting one’s business, a set of people will advice you to keep a sharp focus when it comes to offerings or purpose. Another group might suggest offering as many products or services as possible, to minimize risk. And both groups could defend their views till the cows come home.

However, in most cases, it is most prudent for you to start your venture with a relatively sharp focus, ideally with 1 offering. So that means, you can’t start an eCommerce site and try to rival Amazon’s breadth of categories on day 1. But it also doesn’t mean you start with offering only women’s’ jackets on your e-store. It could mean a focus on selling the latest European fashion online, in which case, that, is your focus. It’s what your customers should know you for.

It doesn’t mean the company should not diversify. What it does mean, is it should diversify within the sharp focus. When you need an app built, will you remember the person who builds apps? Or will you remember someone who builds apps, does web development, content development and social media marketing among other things?

Being an automotive company that builds premium sports cars is memorable. Being a auto manufacturer who builds low-cost hatchbacks, premium sedans and rugged SUVs on day 1 will not register in a customer’s mind.

While a lot of startups struggle to sharpen focus, a lot of older companies too, lose focus with each passing year. And it affects growth, whether or not they acknowledge or even realize it.

A scene from one of my favourite movies, Andaz Apna Apna perfectly captures the thoughts an unfocused mind.

Startup Service Aggregators

Startup Service Aggregators
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Image: source

Startups with business models revolving around aggregating services might have their days numbered. Unless they offer a significant additional benefit (than the underlying services they aggregate) to end consumers. Because without it, they’re just tech-backed middlemen looking for their share of the pie for connecting parties. This might be a steadily tough ask in an increasingly connected world.

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Look forward to your views. And if you liked this one, consider following/subscribing to my blog (top right of the page). You can also connect with me on LinkedIn and on Twitter.

Think A-Team: For the Design & Strategy needs of Young Businesses

Think A-Team: For the Design & Strategy needs of Young Businesses

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Hi, all you enterprising entrepreneurs,

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The services I have selected to offer, are a result of nearly a decade of close working with entrepreneurs and young businesses. While the portfolio of services will evolve with time, what will remain constant is reliability, effectiveness, accessibility and affordability to young businesses that have had few, if any options as far as growth partners go.

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Give it a try today! And I’ll look forward to working with some of you enterprising folks on building your businesses for you.
Have an awesome weekend!!

R,
Shrutin

Look forward to connecting with y’all on LinkedIn and/or on Twitter.