Marketing
Satiation of Desire : Be Good-Enough First
Mar 28th

You’re walking through the desert, the sun beating upon the back of your neck. You are sweating, or at least you were, until the dryness in your throat seemed to dry up your skin as well. With sand in your eyes, you see a store on the outskirts of town selling bottled water. You pay whatever price the clerk asks for a couple of bottles. You sit and down a couple of liters of water. Feeling much better, you get up to go find something to cure the ache in your stomach. On your way into town, a clerk runs out and asks if you’d like to buy some really amazing tasting water from a magical spring nearby. He guarantees it’s the best water you’ve ever had and it will only cost you a little more than you paid for that generic water you’ve just finished. What do you do?
There are many startup companies that act like this second clerk. They believe that just because they’ve got a better product, they will succeed. They neglect the fact that timing matters. Any thing that brings comfort at the peak of desire and relieves it, is good enough. As a result, when a better solution comes around there is no longer a motivation to choose it.
This is why, in many instances, an inferior technology wins in the market against the superior one. When you’ve finished drinking a liter of tap water, it doesn’t really matter how purified and electrolyte filled the “better water” is. They’re no longer looking for it. Many times they don’t even want to think about it because it just gets in the way of solving a new problem. When there is a pain that customers are feeling, the one who offers the good enough solution soonest is often the one that wins.
There is a possible exception to this. There are some desires that recur, providing additional opportunities to address them. If a product not only meets the initial need, but other needs as well, it can break in. The next time you’re thirsty after your walk through the desert, you wait for the man with the magic water. When you find out that not only is it better, but it also cures your hunger — you’ll never look back.
Another more practical example: Relief from boredom is a recurrent desire. Even if you owned a Creative Zen MP3 player, the iPod still wins because it not only provides you with an escape, but it also make you feel cool. It’s more than a one trick pony.
As one of my friends says, some things are only worth doing good-enough. There isn’t money to be made in being perfect, but there is lots of money to be made by being the water salesmen on the outskirts of town, providing the good enough solution soonest.
The Fine Line Between The Great and the Amateur
Mar 11th

What makes a dancer, singer, or speaker great? I mean really great, like genius-level great?
There are three things that make the great different:
First, they stand out. They break conventions. No one gets excited if they play it safe. In fact, they know “playing it safe” is one of the most dangerous options around because at best, no one even notices your existence.
Second, they perform with confidence. When a performer takes the stage and is reserved about their performance, hoping for greater acceptance by not going too far into the extreme, we sense the tension, and it makes us all feel uncomfortable. As a result, it feels like an amateur performance — someone who wants to be great, but simply isn’t.
Third, it requires polish and class. It’s amazing how often you see someone go out and try to push the boundaries, but something is missing and as a result, they fail, and usually, they fail badly. When someone without skill tries something new, they lack the experience to add polish. On the other hand, the genius has an intuitive sense for why the convention exists, and thereby knows how to circumvent it with class. We still find their rule breaking shocking; but we are also extremely impressed.
Sometimes it’s easy to tell the great from the amateur and enumerate why, but most of the time, there is a fine distinction between the two. Its something we sense when we witness it, but can’t exactly put our finger on it — you know it when you see it.
As the world increasingly moves toward commoditized ho-hum, we must instead be great at our jobs like any great performer: Pushing the limits, not settling for safe, and breaking the rules with both confidence and class. However, we must be careful of becoming excited simply because we are breaking free of convention. Too often people think that being different is enough and as a result, they get lazy about their execution. Being different is not enough. You have to be different and you have to do it well.
[Side note: Even though dancing is not really my thing, I've found the videos by the LXD pretty incredible. The mixture of the extraordinary dancing coupled with storytelling is very compelling. In case you haven't seen any of their performances, here was their presentation at TED this year.]
The RapidChip Fallacy
Mar 7th

“The market is going to face this big, nasty problem and they will have no other choice but to use our product to solve it.” – Excited Entrepreneur
Most of the time, this entrepreneur is committing the same fallacy that we faced when working on a failed project called RapidChip.
This fallacy is related to, but different from the “If you build it, they will come” fallacy. This one is committed by excited technologists assuming that simply building the superior technology will draw customers. It leads to a rude awakening when, even though the technology is amazing, no one wants to buy it.
Instead of committing this fallacy, our excited entrepreneur knows that success comes from reducing a customer’s pain. Unfortunately, his excitement about his own solution creates a blindspot when regarding how the customer sees his solution. Solutions not only need to solve a customers pain, but also need to solve it in a way that the customer is expecting.
You can image an entrepreneur selling bionic feet believing he has the perfect solution to foot pain. Simply amputate the foot, and use this amazing bionic replacement. Unfortunately, this fails to consider how people think about solving foot pain (usually something other than cutting it off).
A more real world example was RapidChip. The intent was to solve a big industry problem: as transistors continue to shrink, manufacturing the silicon gets more expensive. RapidChip provided a solution. Essentially, we would manufacture half of the chip, allowing customers to customize the other half. Because the cost of manufacturing half of the chip would be shared between multiple projects, the overall cost of each project would be significantly reduced.
At first glance, this appeared like a great solution, but it overlooked the perspective of the customers. We assumed that customers would continue to create products that relied on custom chips. But this wasn’t their only choice. One option was for them to buy another companies chip; another was to make their next product applicable to a wider class of customers thereby justifying the cost. Our solution was only attractive if the customer had already decided to look for a new technique for manufacturing chips and knew that we existed when they were doing their planning. Our solution only works if multiple projects can share the bottom half, unfortunately, this means designing your chip around a specific half that already exists. This was a constraint they never had to deal with before, and so they were solving the expense problem with other solutions, or demanding we create a custom bottom half just for them, which unfortunately eliminates the entire value proposition.
This wasn’t the only reason that RapidChip failed, but once the above fallacy took root in the minds of those working on it, we failed to consider what other alternatives customers would use, nor had we considered how to convince them to accept the additional constraints of RapidChip. We didn’t seek to design the technology to be easy for customers to move to. It is easy to become so enamored with the elegance of your own solution, that you fail to consider the way a customer will see it.
Every solution introduces its own set of constraints. Just because your customer has a critical problem and you have a solution, doesn’t mean yours is the only solution. More importantly, never underestimate the ability of a man in desperation to find a solution no one else had considered.
Always, always, always consider the alternatives that a customer may already have to solving their “unsolvable” problem and be honest about the constraints that your solution imposes on your customer, and then design the solution so that the customer sees it as an obvious choice.
Further reading:
- Customer development – A process described in detail by Steven Blank
- If it walks like a duck, and looks like a duck, it’s a duck – A good discussion of lessons learned from a failed start-up. His paragraph with this title is related to the above.
Guest Blog: Mawy had a Yittle Yam
Feb 9th
[In response to my post on Tea Bog Beet Knee, Matthew Ritzman, a friend of mine, wrote a response that I thought worthy of more attention. Matthew and I met while he was President of the local Toastmasters club that I attended. His speeches always tied in personal stories and how they impacted him and his story below is another excellent example. Tea Bog Beet Knee was about the responsibility of the communicator to speak in a way that can be understood by his audience, this is about the other side of that coin]
The more I understand the hurdles of getting my point across the more amazed I become that any communication can happen at all. In the very best of scenarios, information is lost between the speaker and the listener.
We present our ideas and we absorb concepts, often in rapid succession. When we are the ones trying to make sense out of the senseless, there are many things we can do to help facilitate communication. One is to familiarize ourselves with the vocabulary and the ways of speaking of the other person.
My younger daughter, Josie, has developmental delays. She has a limited vocabulary, has difficulty pronouncing certain letters (she uses ‘Y’ in the place of ‘L’ and drops most of her ‘S’ sounds) and letter combinations, and speaks slowly with a very metered cadence. She seldom has the luxury of saying things in a different way, so she goes with volume and repetition. (We are actually very happy for whatever words and fragments she provides – she used to say, “EEEE, EEEE, EEEE, EEEEEEEEE” when she wanted something). We’ve found that she often says some pretty remarkable things, but we have to pay close attention and analyze her words to figure out what she’s saying.
With effort on both sides, we are often able to figure out what she’s trying to get across.
As an example, her sister, Kallan, brought home a recorder from school, and was learning, “Mary had a little lamb,” by playing it over and over. Josie, who doesn’t often string together words together came up with two complete sentences.
STOP………………. PLAY……………… THAT
STOP………………. PLAY……………… THAT
I………………………TAKE……………….EEE……………..AWAY
The long pauses between words and limited enunciation are barriers to communication, but they aren’t completely insurmountable. By understanding her patterns and the context we found the intended meaning (and the unintentional humor).
Besides merely listening to understand, another thing we can do is engage additional media. I tend to communicate best with the help of pictures. Dan Roam, in his book, _The_Back_of_the_Napkin_, discusses how drawings can break down barriers and help us identify and solve problems. He gives some useful strategies for attacking problems with pictures. Pictures can be understood in situations where language gets cumbersome.
True communication is a two way street. It really comes down to a partnership between the audience and the presenter. In fact, the best communication happens when both parties do their very best to communicate clearly as well as listening to truly understand where the other is coming from.
Experimental Costs
Jan 5th
“If I find 10,000 ways something won’t work, I haven’t failed. I am not discouraged, because every wrong attempt discarded is another step forward”
Thomas Edison
Science requires thousands of failures in order to find a success. Following the success, we look back and rationalize why that one success was obviously the solution to the puzzle. Prior to finding it, we could not see it. This retrospection however, can cause us to think that we just need one brilliant idea to be successful.
The reality is that you are more likely to succeed if you can try a lot of things and the Internet is a great playground for that. It’s inexpensive to try different experiments and it’s easier to measure the effect. In many ways, you’re better off running as many experiments as you can, fail quickly, learn, and try again rather than trying to figure out the exact right strategy before you even start.
There is still an art to experiment design that should be consider, but trying to achieve perfection in this, often means that you lose out on serendipitous findings that come from trying lots of different combinations. Again, there is much beyond our purview including whole groups of people we’ve never interacted with.
This means, if you can provide a successful service or marketing message to a small niche, the internet’s scale is able to make it be successful. One realization that shocks me is that there are THOUSANDS of successful products that we’ve never heard about. Products that are making a lucrative living for someone. Because we tend to ignore those things beyond our view of the world, we believe we know of all of the successful things (or at least most of them), but this is simply not the case.
This ultimately means that your small idea may find a big tribe.
Got an idea? Try it out.
Preemptive Apologies
Nov 20th

We are hiring, bringing the requisite meetings with people to find the one that is a good fit.. Earlier this week, we had breakfast with one such candidate. He was really nice and had a good skill set but it wasn’t a match with what we were looking for.
After the breakfast, he sent a couple nice follow up emails – one to the CEO and then one more broadly to all of us that were there. He went back to several questions and reiterated some points. Overall, it was a great follow-up, but about 3/4 of the way through his email he put in a paragraph that apologized for spitting out his food twice during breakfast.
Even though I hadn’t noticed at all, I now how the pleasure of imagining him spitting out his food. I pulled the others, and only one noticed it once, but didn’t think much of it. None were in the slightest offended or even considered it, but by bringing attention to it, we all simulated picturing him spitting out his food.
When your actions clearly cause offense, it can be good to apologize preemptively, but if the person wasn’t offended, apologizing can actually create offense. The problem of course, is that we notice the things we wish we did differently or said differently upon further reflection, and we project our perception on others.
This same thing applies as much when you are trying to convince someone of a point and, instead of simply presenting your case, you preemptively begin to respond to arguments that haven’t been said yet. In this situation, you provide the person you are trying to convince more information about why they shouldn’t be.
For example, if you really believe a product could help someone and you are trying to help them see that, you don’t want to launch into why previous problems have been resolved and won’t happen again. It adds doubt rather than helps them to be convinced. Moreover, don’t apologize for things that may have gone unnoticed.
And remember, apologizing for farting during the sales call is never the best follow up.
Tea Bog Beet Knee [The Curse Of Knowledge]
Nov 9th

In the process of learning Spanish, I’ve had a lot of thoughts regarding the nature of communication. When we are communicating, we know what we are trying to say and so whatever we say sounds completely unambiguous. The “Made To Stick” authors talk about this concept as “The Curse Of Knowledge” and it’s extremely present in learning a new language. Sometimes, I will say the same word with slightly different vowel sounds to my teacher until I see her face finally go from a scowl of incomprehension to a look of enlightenment. The whole time, I know exactly what I’m trying to say and it makes perfect sense to me.
The same thing can happen to us when we are trying to explain something to our customers or our colleagues. It makes perfect sense to us, but not to the person you are trying to communicate with.
If a child walked up to you and said, “Tea Bog Beet Knee”. You might look at him perplexed, or take the expression I have become very experienced at using – smile and nod. The words all sound remarkably close to the meaning but not quite right. You can even add the correct pronunciation to some of the words without adding much value: “The Bog Beet Me”. Still it’s not easy to understand.
Perhaps if you saw teeth marks on the child’s arm, and saw a dog running down the street you might put together that he was saying “the dog bit me”. But before that, as you are smiling and nodding, the child is likely to say the same sentence with greater earnestness, slower, and louder. None of which actually help in the comprehension.
Yet how often do we take the same approach and get frustrated when we get looks of confusion from the people we are trying to explain ourselves to? This problem is one of the main sources of miscommunication that we have has people. The speaker already knows all about what he is trying to say. There are no ambiguous pronouns in his sentences and there is only a single connotation in all of his words. When the listener doesn’t understand, saying the same phrase more emphatically doesn’t work.
All of us as communicators should remember that the mere fact we are expressing something verbally to our audience means they don’t know what we want them to know and as such, we would do well to remember it is our responsibility to communicate with them. Not their responsibility to guess what we are thinking. Remember, as the speaker, you are cursed with knowledge, and this is the first obstacle you have to overcome.
Fail Quickly
Oct 20th

Yesterday, I talked about the importance of embracing failure. The second aspect of this is the speed of failure. There are many projects for which feedback is very slow and this can cause two problems. First, not being able to see the entire system and how decisions that were made earlier create a failure much later. Second, you have a very limited number of experiments that you can run and find the way to succeed.
No one has an infinite number of experiments – it is limited by time, by money, or by some other consumable. The key is to find environments where you can fail and recover quickly.
Consider the plane pilot, we don’t want him failing while flying in a plane. Moreover, one failure and he has extinguished the consumable most important to his learning (his life). We do want him failing in a flight simulator though over and over and over again. Learning what to do when it’s raining, your gauges aren’t working right and the left engine is broken.
Many companies don’t spend enough time figuring out how to fail quickly and safely. They make the entire enterprise a grand experiment which allows only one shot. They hire 15 engineers and 5 sales people and consume their capital like they were in a hyperinflationary market. They get one chance to get it right, the problem is that if they get it wrong (they probably will), they can’t use the learning to get better. It’s done.
People can do the same things in their careers and in their life. They can easily become so convinced in the direction of their actions that they cease to consider whether they are investing in the right things. The goal always out of reach.
It is important for every company and every leader to find ways to fail quickly and to learn how to change quickly. This is what leads to learning and perfecting the very actions that we are doing. You can only learn as fast as you can fail and recover
Resonance and Distortion
Oct 12th

Ever listen to a song that you really like, I mean, REALLY like. The kind of song you just automatically reach for the volume to turn it up when you hear it. It resonates with you and evokes powerful emotions.
But what happens when you turn it up past the point your speakers can handle: distortion. It doesn’t sound good and ruins the mood. Of course, if your speakers don’t reach this point, eventually your ears will (and then it’s more than simply not sounding good).
I like the idea of resonance as it relates to some idea — one that resonates with those who hear it. You’re excited, the idea gets them excited. New ideas emerge. This is a powerful concept and when you find one, it’s a fun ride.
One temptation though when you are faced with a resonate idea, is to try to accelerate it and push it, turn up the volume as it were. But at some point, forcing the idea starts to create distortion (or pain) and that can ruin the entire wave. It’s good to turn up the volume, but don’t create distortion.
Recall back when you were a child and getting the swing to go higher and higher. It could only happen at a natural pace and required shaking your legs at the right time. Shaking them wildly in hopes of getting yourself higher simply gets you laughed at.
Whether you are growing a company or growing yourself, there are natural limits to your ability to adapt and change, to grow. If you start seeing the fruit of getting things better, you create resonance. Push to hard and you can lose all you’ve gained.
Standing In Line Behind Yourself
Oct 8th

Ever open the fridge, pull out something and wonder if it’s spoiled, decide not to eat it and put it back in the fridge, as though next time you’ll decide differently?
One of the books (“Brain Rules” – I’m pretty sure) I read recently discussed being careful how we make our first decisions because we are likely to do it again. The idea is similar to driving by a restaurant and seeing a line out the door. It makes the restaurant look very popular — it must be if that many people are waiting in line to wait.
Similarly when we make a decision, the decision starts the reinforcing loop. The example he used was going into Starbucks for the first time, buying a cup of overpriced coffee, and enjoying it. The next day, you think, well, that was a good experience, maybe I should try it again. Over time, it becomes a habit.
It’s funny to me how many times we make a decision in the moment thinking that the next time we reevaluate the decision we will decide differently. Most of this comes from punting on really thinking through the decision (it’s easier to not decide than it is to make a decision), and yet our non-decision is one and we are likely to take the same action the next time, that is, until mold makes the decision process very easy.