So here's a short one on why I think AI won't replace creatives, but make them more valuable than ever.

(This RØDE mic is really the GOAT. Even with the wind outside.)

Pro tip I learned this week: You want the most lighting you can possibly have in front of you, and less lighting behind you. Problem: The lighting was getting in my face!

Anyways,

Remember when PDFs were supposed to create the 'paperless office'? Instead, we're printing more than ever.

When streaming was going to kill movie theatres? Then Top Gun: Maverick made $1.5 billion.

When the internet was supposed to kill the postal service? Now they're delivering more packages than ever.

Now everyone's saying AI will replace the creative class: the developers, designers, writers, artists, musicians, and architects who shape our digital world.

But they're missing the same lesson: Technology doesn't destroy. It transforms.

Here's why AI won't replace creatives, but make them more valuable than ever:

1/ More automation means more creative freedom

AI will handle the repetitive tasks - basic coding, initial sketches, rough drafts - but companies still need human creativity to design experiences, debug complex systems, and integrate AI thoughtfully. Just like Photoshop didn't replace designers, AI won't replace creators.

2/ High-level thinking will become critical

AI can generate code, images, or text, but it can't architect complex systems, understand human emotions, or make nuanced artistic decisions. The best creatives will focus on vision and strategy, not technical execution.

3/ AI-augmented creators will thrive

AI is a tool, like the printing press or digital camera. The creators who use it to amplify their vision and tackle bigger creative challenges will outperform those who don't. Innovation and artistic judgment will be the new differentiators.

4/ New creative roles will emerge

Expect to see "AI Art Directors," "Neural Network Composers," and "Digital Experience Architects." The creative industries won't shrink - they'll evolve and expand.

5/ The hardest problems remain deeply human

Even if AI can generate flawless code or beautiful images, we still need human creators to understand cultural context, emotional resonance, and real-world impact. Empathy and creative vision will be irreplaceable.

AI isn't replacing the creative class. It's amplifying their capabilities.

Those who embrace this transformation will be more valuable than ever.

But here's a surprising twist: The infamous "Kinder Egg ban" wasn't actually about choking hazards, as most people believe. The real story is far more interesting, and it teaches us something fascinating about innovation under constraints.

But first: Was the Kinder Surprise egg really banned in the USA?

Yes it was.

The Kinder Egg was banned in the United States for a while because of the small toy inside. The ban was later lifted, but the product had to be modified to meet safety regulations before it could be sold again.

But it wasn’t because of the choking hazard.

Kinder Eggs are not allowed in the US because they have a small plastic capsule with a toy inside. The law from 1938 says that such products are not permitted to be sold or brought into the country. The specific explanation of the law is that it prohibits confectionery that contains non-food objects.

So the egg was banned because of the law on “non food items” and perhaps not because of the choking hazard.

So what was the response?

Kinder's response serves as a good reference case study in innovation and adaptability. Instead of resisting the bans or discontinuing the product, Kinder took a proactive approach. They recognized the need to maintain their brand's legacy while addressing safety concerns.

Kinder underwent a product redesign. They introduced a new, safer format for their toys, ensuring that they met stringent safety standards without compromising on the element of surprise. The redesigned toys were larger and specifically designed to minimize choking hazards.

The solution they came up with was Kinder Joy, a debatably brilliant response to the ban that has become a success story in its own right.

Kinder Joy retained the core essence of the Kinder Surprise: the joy of discovering a surprise inside a delicious chocolate treat. However, it introduced a clever twist by separating the toy from the chocolate. Instead of having the toy enclosed within a chocolate egg, Kinder Joy offered a two-sided package. One side held the creamy chocolate with a spoon for scooping, while the other contained a fun toy to play with.

This strategic move addressed the safety concerns head-on. By separating the toy from the chocolate, Kinder ensured there was no “non-food item” while still delivering a delightful experience. Moreover, the format change provided an opportunity for Kinder to introduce a broader range of toys and interactive experiences, making Kinder Joy even more appealing to children.

The Innovation Recipe:

1. Split the product physically - one half chocolate, one half toy

2. Technically comply with the 1938 law

3. Keep the core "surprise" element intact

4. Add a spoon (because why not make it fancy?)

But Kinder didn't stop there. In true 21st-century fashion, they went digital. They developed an app where kids could virtually "unwrap" their Kinder Surprise eggs. It's like they said, "If we can't give you a physical surprise, how about a digital one?"

The Ironic Success Story Here's the kicker: Kinder Joy became a massive success story in its own right.

What Can We Learn?

1. Regulations aren't always roadblocks - sometimes they're innovation catalysts

2. The best solution might not be fighting the system, but working around it

3. When life gives you a 1938 law, make a split-egg product.

Kinder's response to the ban on Kinder Surprise eggs exemplifies how innovation and adaptability can help a brand overcome challenges. By redesigning their product, embracing technology, and promoting responsible consumption, Kinder not only addressed safety concerns but also strengthened their brand's reputation. This story reminds us that even in the face of adversity, innovative solutions can lead to positive outcomes for both consumers and businesses.

The Future of Surprise Today, Kinder Joy stands as a testament to innovative problem-solving. They took a decades-old regulation and turned it into an opportunity for reinvention. Though personally, I don’t like Kinder Joy at all, I do have to admire the ingenuity.

Perhaps the real surprise isn't what's inside the egg, but how a seemingly restrictive regulation led to an entirely new product category.

What do you think? Are you team Original Surprise or team Joy?

P.S. For those wondering - yes, you can still get the original Kinder Surprise eggs in many other countries. Just remember: attempting to smuggle them into the US could lead to a fine of up to $2,500 per egg. That's one expensive chocolate surprise!

You know that feeling, right? When an AI avatar is speaking, and something just doesn't click? The words are perfect, the face moves, but your brain is screaming "something's not quite right here!"

Here's the fascinating part: Locke's research revealed that we're essentially walking lie detectors, equipped with millions of years of evolutionary code for reading subtle cues that words alone can't convey.

Think about the last time you met a potential business partner. Before analyzing their pitch deck or checking their LinkedIn, your brain had already made a snap judgment.

Here's a quick test I use: Would you hug them? Sounds silly, but our ancestors relied on these gut feelings about physical proximity for survival. If the thought of a hug makes you uncomfortable, maybe that's your prehistoric brain raising a red flag.

The AI Avatar Challenge

This is where AI faces its Everest. Current avatar technology is like a band playing all the right notes but missing the music. They can nail the script, but they're failing at what Locke discovered was crucial: the micro-symphony of authentic human interaction.

Let’s break this down with a simple example: Picture receiving two identical apologies. One from a friend whose face shows genuine remorse - slight brow furrow, breaking eye contact, that subtle shift in posture. Now imagine the same words from an AI avatar that's "trying" to look sorry. Even if you can't pinpoint why, one feels real, and the other... well, you know.

The Uncanny Valley isn't just a technical challenge - it's an emotional one. Our brains process countless subtle signals in every human interaction, most of which happen below our conscious awareness. It's what Locke would call the "emotional bandwidth" of communication.

What This Means for the Future For AI to truly replace human-to-human video communication, it needs to crack what could be called the "authenticity code." It's not just about making avatars that can speak - it's about creating ones that can truly emote.

Will we get there? Probably. But for now, genuine human connection still has a profound edge. As someone who's spent years studying growth and innovation patterns, I can tell you: sometimes the oldest technologies (like authentic human expression) are the hardest to disrupt.

What are your thoughts on AI avatars?

This matters because understanding the gap between AI and human communication helps us better position our own products and services in an increasingly AI-driven world. After all, knowing where AI falls short is just as important as knowing its strengths.

What do you think? Is the "human edge" in communication a permanent moat, or just another technology challenge waiting to be solved?

The process looked something like this:

In my naivety, and little did I know, I’d accidentally stumbled upon a technique known as a “Growth Loop”. Ten years on, I took a course from Reforge on Growth Loops called “Growth Loops are the New Funnels” which took this concept to the moon and beyond.

Excited with my new learnings, I ran a workshop on this. And I’ll share with you what I now know in this post about Growth Loops for Fun and Profit.

Let’s start with a question.

How does your product grow?

Some typical, and not entirely incorrect answers might be along the lines of:

1. Through Marketing Campaigns: Many would first think of external marketing efforts such as social media campaigns, email marketing, PPC ads, etc., as primary drivers of growth. They see these as direct ways to acquire new users or customers.

2. Word of Mouth: One might simply see word of mouth as an organic, uncontrollable, result of having a good product or service.

3. SEO and Content Marketing: Focusing on creating content to rank well in search engines or to engage users on their blog or through other content channels, without necessarily looping the output of this back into something else.

4. Sales Teams and Efforts: Especially in B2B contexts, the growth of the product might be attributed to the efforts of sales teams in direct outreach, networking, and converting leads into customers.

5. Product Improvements and Updates: Some might believe that simply making the product better over time through updates and new features will naturally lead to growth.

6. Partnerships and Collaborations: Forming partnerships with other companies or leveraging influencers and thought leaders to reach new audiences.

7. Offering Discounts and Promotions: Using pricing strategies, discounts, and promotions to attract new users or customers, seeing this as a direct input to growth.

8. Expanding to New Markets or Demographics: Identifying and targeting new user segments or geographical markets as a growth strategy.

These responses, while valid strategies and quite good in their own ways, are missing something.

A. They haven’t captured any cyclical, self-reinforcing nature. (Although one might argue that some generate revenue which can directly be allocated back into spending more on advertising).

B. The answers, given individually, only represent one piece of the puzzle. Is the sales team in sync with the SEO team for example? Will the sales pitch to the customer add up when the customer starts searching online for information about the product?

C. And the answers generally talk about the output and not the inputs. For example: Acquire more users, convert leads into customers, form partnerships, etc.

So how does your product grow 100x?

Growth loops, on the other hand, emphasize the importance of creating mechanisms within the product or service that naturally lead to growth by turning the output of one process (e.g., new users) into a new input (e.g., those users generating content that attracts more users) in a way that compounds over time.

For example, let’s look at this very common and simple growth loop that Pintrest used to grow their user base:

1. User finds Pinterest through long tail SEO/search-engines.

2. User signs up.

3. Pinterest activates the user on the product with specific/relevant content

4. Users save new content or repin existing content which gives Pinterest quality signals

5. Pinterest distributes the quality content to search engines

6. A user finds the content via search engines and either signs up/returns (a return to step 0)

Sounds super! In theory. Right?

Here's the thing with dissecting an excellent growth loop: it's easy to look at it and think 'that's genius' then try and create one for yourself without any structured way to create it.

Let me repeat that in some kind of quote, so it can be remembered:

So let’s now go through how we can actually create a growth loop (for fun and mostly for profit)

As mentioned above (and yes, I am repeating it a third time) it is nice to look at a successful growth loop and think to oneself “Wow. That’s smart”. Then you try and copy the growth loop for your own business. Then it doesn’t quite fit into your business. So what you do then is to remove parts and try and shoehorn your own parts in, with an extra topping of new untested ideas.

What you’re left with is a Frankenstein’s monster of a growth loop that kind-of works on paper but you’re left scratching your head when you launch it and it doesn’t have the effect you were hoping for.

What you really need to do, is start again from scratch and build a growth loop which fits your specific business.

The good news is that there’s a workflow for that.

A workflow to create a sustainable Growth Loop

This is the workflow given by Reforge:

1. Identify Loop Properties - By cataloging all available components.

2. Identify Available Loops - Systematically.

3. Model the Micro Loops - Visually.

4. Model the Macro Loops - To visually identify where your loop compounds.

I want to illustrate how this works by going through a simple example. There’s actually a lot more to this, which is covered in the Reforge course. What I’m trying to do here is introduce the concept through a simple growth loop that a well known company might have.

Let’s use…

Notion as an example. Let’s go.

Analyzing the growth loop properties for an app like Notion involves considering the ways in which Notion attracts, retains, and engages its users, as well as how it nudges and encourages them to contribute to its growth. I’ll make a presumption about their growth loops and break them down using Reforge’s framework of growth loops, focusing on micro and macro loops.

1. Step 1: Identify the Loop Properties of Notion

   We, ideally, begin by cataloging every potential component for crafting growth loops. This process involves constructing a comprehensive map of loop properties, laying the groundwork for strategic loop formulation.

   Three Properties of a loop

   - What? What actions are happening? There’s three types of actions that can happen a. receiving value, b. generating value, and c. distributing value.

   - Who? Who is doing the action?

   - Why? Why is the ‘who’ doing the ‘what’?

   Every loop is made of a combination of these three qualitative properties.

With Notion, we can presume that they have a “Viral Sharing Loop” because there’s an inherently frictionless nature of how it allows users to create and distribute content.

• What: Users invite others to collaborate on documents or to view their public Notion pages.

• Who: Both individual users for personal projects and team admins for collaborative workspaces.

• Why: The motivation here can be personal (sharing information with friends or family) or professional (collaborating on team projects), leveraging the utility of the platform for seamless collaboration.

2. Step 2: Identify Available Loops

   Systematically pinpoint the types of growth loops that are actionable within your framework, offering a clear overview of your strategic options.

   There are quite a few actionable loops available to Notion in order to address the who, what, and why to deliver value to the users whilst compounding the effects.

   Three of which, I can think of as some possible loops, are:

   A. User Invitation Loop

   • What: Encourage existing users to invite new users to the platform.

   • Who: Existing users inviting colleagues, friends, or family.

   • Why: Users might invite others to collaborate on shared projects, share knowledge, or simply introduce the platform's utility to others.

   B. Template Sharing Loop

   • What: Enable users to create and share templates within and outside the Notion community.

   • Who: Template creators and users looking for productivity solutions.

   • Why: Creators share their templates to showcase their expertise, gain recognition, or help others. Users search for templates to improve their productivity and organizational skills.

   C. Integration and Plugin Loop

   • What: Develop and promote integrations or plugins that extend Notion’s functionality.

   • Who: Third-party developers and power users.

   • Why: By integrating with other tools, Notion becomes a more indispensable part of the user's workflow, encouraging users to share these integrations within their networks.

3. Step 3: Model the Micro Loops

   Visually model the interconnections between all identified micro growth loops.

   Modeling micro growth loops visually involves creating a diagram that illustrates how each loop interacts and feeds into the others, highlighting the flow from inputs to actions and back to inputs. This process helps identify synergies, bottlenecks, and opportunities for optimization, ensuring alignment and efficient resource allocation.

   Our example Notion growth loops look something like this:

   

   Or in a table, simply:

   

   As a disclaimer here, this is a fairly simple growth loop, and it is a great example because you can see the effects of the loop directly impacting a metric like “New Users”. However, not all growth loops need to be focused on generating new users or leads. One example is how Netflix compounds the value that their users get, the more they use the product.

   

   This is powerful as a retention and engagement loop for existing users which is not directly impacting the growth/acquisition of new users.

4. Step 4: Model the Macro Loops

   A macro growth loop connects your underlying micro loops and enhances their effectiveness by either reducing their cycle costs or improving their performance over time. It's essentially an overarching mechanism that strengthens the foundation provided by your micro growth loops, making the entire growth engine more efficient and powerful over time.

   For instance, YouTube's personalization algorithm is a good example of a macro growth loop. YouTube’s algorithm creates what's known as a Data Network Effect. As a user watches a video (completing a cycle of a micro loop), YouTube gathers data that helps to better personalize future video recommendations for that user. This personalization improves the likelihood that the user will watch more content, thereby increasing the total content consumed. As a result, more content is shared, attracting new users and enhancing the effectiveness of YouTube's micro loops (like their content creation and consumption loop)​​.

   Another example is Salesforce, where a macro loop is created through a Cross-Side Network Effect. This effect occurs when the growth of one set of users (e.g., customers) enhances the value of the platform for another set of users (e.g., developers), and vice versa. As more customers use Salesforce, it becomes more attractive for developers to create integrations for Salesforce, which in turn makes Salesforce more valuable for customers, fostering a cycle of compounding growth over time​​.

   In Notion’s case, they can benefit from several macro growth loops that leverage the interconnectedness of its micro growth loops which will enhance their effectiveness over time.

• Data Network Effects from User Collaboration: As more teams and individuals use Notion for project management, documentation, and collaboration, the value of Notion increases for all users. The increased data (in terms of templates, integrations, and use cases) enhances personalization and usability for users, encouraging deeper engagement. For instance, as users create and share more templates within the ecosystem, new users find more immediate value upon joining, and existing users discover new ways to use Notion, thus enhancing retention and engagement.

• Cross-Side Network Effects between Users and Integration Partners: Notion benefits from a growing ecosystem of integration partners (Google Drive, Slack, Trello, etc.). As Notion's user base grows, it becomes more attractive for third-party apps and services to integrate with Notion, improving Notion's functionality and appeal. This, in turn, attracts more users and increases engagement among existing users, as they can leverage Notion as a central hub for their work, integrating various tools they already use.

Some other macro growth loops that Notion is possibly using:

• Brand and Community Building: As Notion's user base grows, the community around it also expands, contributing to forums, creating educational content, and sharing use cases. This community-driven growth loop strengthens Notion's brand, making it a go-to solution for productivity and organization. The community acts as both a support network and a marketing channel, organically driving new user acquisition and enhancing Notion's defensibility in the productivity tool market.

• Learning and Improvement from User Behavior: With a diverse user base spanning individuals, small teams, and large organizations, Notion can harness data on how different segments use the product. This insight allows Notion to refine its features, improve user experience, and introduce new functionalities that meet the evolving needs of its user base. Over time, these improvements make Notion more indispensable to its users, enhancing both retention and the likelihood of users recommending Notion to others.

These are just my presumptions about Notion's growth strategy. It may include these and other unique elements tailored to its specific market position, product offerings, and user base characteristics​​​​.

Concluding Notes on Creating Growth Loops

The growth loop modeling process represents a strategic and analytical approach to understanding and leveraging the mechanisms that drive organic growth within a product or service. By focusing on the creation, optimization, and connection of various micro and macro growth loops, organizations can foster a self-sustaining ecosystem that not only attracts new users but also enhances the value and engagement of existing ones. This process is essential for several reasons:

1. Compounding Growth: Unlike traditional linear growth strategies that rely on continuous input of resources for each incremental gain, growth loops emphasize compounding growth. Each loop is designed to reinvest its outputs back as inputs, thereby creating a self-reinforcing cycle that becomes more efficient and powerful over time.

2. User-Centricity: Growth loop modeling inherently focuses on the user’s actions, motivations, and benefits. This user-centric approach ensures that growth strategies are aligned with delivering real value to users, enhancing satisfaction, retention, and ultimately, the likelihood of users contributing to the product's growth through their actions.

3. Strategic Alignment: The process of identifying and modeling growth loops requires a deep understanding of the product’s core value proposition, user behavior, and market dynamics. This leads to strategic alignment across different functions within the organization, ensuring that product development, marketing, and sales efforts are cohesively geared towards amplifying the growth loops.

4. Innovation and Adaptability: By continuously analyzing and refining growth loops, organizations can remain agile and responsive to changes in user behavior, market conditions, and technological advancements. This adaptability is crucial for sustaining growth in the fast-paced and competitive digital landscape.

5. Resource Optimization: Growth loops allow for more efficient use of resources by focusing efforts on mechanisms that not only attract users but also turn them into advocates for the product. This leads to a higher return on investment for growth initiatives and enables resources to be allocated more effectively.

6. Defensibility: Well-executed growth loops can create a competitive advantage that is difficult for competitors to replicate. By intricately tying growth mechanisms to the unique aspects of the product and its user base, companies can build moats that protect and sustain their market position.

Concluding Thought on Growth Loops for Fun and Profit

The growth loop modeling process is a fundamental shift from traditional growth strategies towards a more dynamic, user-focused, and efficient approach. It recognizes growth as a holistic and continuous cycle, driven by delivering value and engaging users in ways that naturally promote the product. For startups and established products/companies, mastering this process is the way to unlock sustainable and compounding growth.

Further Reading

Why Slack’s Growth Strategy Led to Billions Without A Sales Team

https://www.drift.com/blog/how-slack-grew/

Growth Loops are the New Funnels

https://www.reforge.com/blog/growth-loops

Also relevant:

1. Go to acquire.com

2. Find a company with ARR>$100k.

3. Look at the top competitors (Acquire.com shows the competitors but not the company being sold)

4. Look at reviews of the competitors (App Store, Google Play, Trustpilot). Especially those reviews of 3 stars and below.

5. Ideate a solution that solves the pain that those with 3 stars and below have.

6. Apply some product management techniques so that solution.

7. Building, Marketing, Building, Marketing, Building, Marketing.

8. Profit? To the moon!

It’s not the first time I’ve seen a similar idea, so I wondered: is this just great in theory? What if I actually tried it out, with the help of a few extra steps? We have ChatGPT and other AI tools that can accelerate our progress.

Let’s give it a try.

Maybe I can be lazy and ask ChatGPT to do the research job

Well. That didn’t work. So let’s try something else.

Let’s go to Acquire.com and search for businesses that I might be able to build and run. Content and SaaS are things that I’m familiar with.

Ideal asking price range between 100k and 500k. Anything less than 100k is not that worthwhile for me to run myself, and businesses asking for more than 500k are likely more complicated or matured operations.

Don’t get too greedy on the multiple profit/revenue ranges.

Choose some industries and business models that I can actually handle.

Ok, looks like I have three options to begin with:

I'm most familiar with educational technology, which is why this particular option stood out to me. It shows a monthly profit of 2k, and based on their financials, there seem to be minimal monthly expenses. I'm guessing these are primarily from advertising revenue and occasional payments for a programmer or developer to address various issues.

The competitors listed are ARRT, ASRT, and Rayos Education. ARRT appears to be the American Registry of Radiologic Technologists, and ASRT, the American Society of Radiologic Technologists. Given their nature, these aren't revenue generating businesses to focus on. I presume Rayos Education aims to assist individuals preparing for exams conducted by these organizations. So let’s look into them a bit more.

According to SimilarWeb most of their traffic is coming from organic search (interesting because that means there is a possibility that a similar site to this can run on its own without any advertising spend) and social.

Organic is from these two keywords/phrases:

“rayos education discount code” - Nothing much we can do here.

“arrt radiography sample exam- rayos education” - Interesting. We can expand on it.

Let’s use Google’s keyword planner to see what other keywords there are around this:

There’s some long tail keywords we can go for here, with low or medium competition. Worth a shot.

There’s our Rayos showing up in Google results for this:

There’s some other competitors too. Interesting.

Mometrix provides unofficial study guides, online courses, and flashcards for a variety of examinations with about 1.5 million website views per month. Flashcards are priced at around $40 per set depending on the course. Questions on Mometrix are given free, for the first five, then it asks for your email to continue. Their radiology test guide is priced at $60.

MedicalHero is test prep, for what you might have guessed, is a medical test prep service which has a dedicated package for a range of medical tests. Pricing per course is $49 for one month’s access, $59 for three months, and $64 for lifetime access. There’s a dedicated landing page for each type of test prep.

This information will help us to decide on a price point because we now know that people are paying this amount for similar services.

Let’s now look at any reviews we can find (App Store, Google Play, Trustpilot). Which will help us to ideate something.

I couldn’t find anything on Google Reviews or Trustpilot for Rayos.

Mometrix has an astonishing 4.8 rating on Trustpilot. The minimal bad reviews come from people who scored well on the practice tests but badly on the real tests. The reason: The material is outdated or not relevant on the practice tests. This will need solving if we are to become a competitor. Another reason for the lower rated reviews were that people were not happy with the subscription model, which makes sense because why would someone want to pay a monthly subscription for a one -off test?

Ok. Where are we now? We need to continue with with “5. Ideate a solution that solves the pain that those with 3 stars and below have.”

So how do we solve the pain point from those negative reviews?

1. Keeping the questions up to date. My first thought is to allow the community to feedback on this? Will they? Probably not. Another way is to constantly check on the official updates.

2. Unhappiness with subscription model. So then we make it a one-off fee.

How do we make an MVP that can test whether we can sell this? How do we apply some product management techniques so that solution?

Without delving too deeply here, as I plan to cover this in future blog posts, let's focus on the key value proposition the customer seeks: being well-prepared for an exam.

How will we deliver on this value proposition?

Preparing for exams effectively involves practicing potential test questions; there's no better method. Our focus, therefore, should be on providing high-quality, exam-simulating questions. Unlike Duolingo, we don't need to gamify the process. Simply offering well-crafted questions that mirror the actual exam format is sufficient.

How will we solve the issue of questions being outdated or irrelevant to the exam?

As mentioned earlier, since I am not a domain expert, my approach would probably involve regularly checking the official site for test competencies and establishing a user feedback loop, encouraging users to report back on their exam results. Additionally, allowing users to submit their own questions could facilitate self-testing and generate valuable user-generated content.

What about MRR?

This is an infrequent product so it’s unlikely we should be looking for MRR on this. If you want to learn more about how to build a business around infrequent product usage you can check out this Reforge course at: https://www.reforge.com/blog/iced-theory-growing-infrequent-products.

Last thing. wHaT aBoUt ThE mOaT?

What about that moat? ChatGPT suggests to focus on the content quality (as we discovered from checking out Trustpilot reviews)

What about the market size?

I'm uncertain about the market size for this business, so I asked ChatGPT to provide a Fermi estimation. It suggested that around 60 people might take the exam in California each month. If I manage to get 10% of these individuals to pay for my course at a $49 price point, that equates to $294 per month. Is this venture worthwhile? I'm at a crossroads here. Should I continue with this project? Further thought is needed. Considering the 49 other states, the potential for profitability increases. Moreover, there are many other niche tests I could cater to. But would this approach dilute my brand? And would it be feasible to keep up with the syllabus for all these different tests while maintaining high-quality products for each?

Concluding thoughts

Did this really take just one hour? Yes, it did for the ideation part. Of course, evolving this into a fully functional business will undoubtedly take longer. However, I’d say it’s a worthwhile exercise compared to starting a random business.

Can it generate $1 million in revenue? That seems unlikely. Or perhaps that's just the conclusion I've reached from this one-hour exercise.

In conclusion: I’ve failed to ideate a $1m/year business from advice I saw on X/twitter but it’s mostly because I’ve not thought enough around adjacent markets and other products that I could sell based on the technology/workflows/processes that might be created during the making of such a business.

Would others have more success with this?

I’d love to know your thoughts/criticisms. Message me on X at https://twitter.com/growth_hc. Where did I go wrong?

So here’s a “Explain Growth Loops like I am 5” answer from my GPT:

Alright, imagine you have a fun game where you roll a ball down a slide. Each time the ball rolls down, it knocks over a domino, which pushes a little toy car, and the toy car hits a button that brings the ball back to you. Then you can roll the ball down the slide again. This whole thing is like a loop because it keeps going around and around.

In the world of businesses and apps, a growth loop is kind of like this game. It's a way to keep getting more people to use a product or service without always having to find new people from outside.

Let's use a lemonade stand as an example. Imagine you have a lemonade stand, and every time someone buys your lemonade, they get a sticker. If they collect 5 stickers, they get a free lemonade. So, they come back more often to get more lemonade, and they also tell their friends about your stand so they can get stickers too. Each time your customers come back or bring friends, you get more customers, and the loop starts again.

This is like a growth loop because your customers help you get more customers, just like the ball in the game helps you roll it again and again.

And here’s a more detailed explanation of what growth loops are

A growth loop is a fundamental concept in growth strategy that represents a closed system where inputs through certain processes generate outputs, which are then reinvested back into the system as inputs. This self-reinforcing mechanism allows growth loops to compound over time, becoming more effective and efficient. The concept of growth loops is essential for understanding how a product or service can sustainably grow and scale.

There are two major types of growth loops:

1. Micro Growth Loops: These are foundational loops that drive both new user acquisition as well as retention and engagement. An example of a micro growth loop could be a content loop where new users are acquired, some of these users create content, which is then consumed and distributed by other users, leading to the generation of new and returning users over time.

2. Macro Growth Loops: These loops connect and enhance the effectiveness of micro growth loops by decreasing their cycle costs or improving their performance over time. An example is YouTube's personalization algorithm, which can be seen as a macro growth loop. It improves the effectiveness of their content loop (a micro growth loop) by better personalizing video recommendations based on user data, thus increasing the likelihood of users consuming more content and attracting more new users.

Growth loops are important because they create compounding growth, are more defensible against competitors, and become more efficient over time. They are a strategic tool for businesses to optimize and align their growth efforts, making them crucial for long-term success.

Let’s talk more about Growth Loops and GPTs on Twitter.

The tales of two remarkable minds, Einstein and Archimedes, often intertwine with the innovative power of the bathtub. Legends tell us that while immersed in the soothing waters, these brilliant thinkers experienced groundbreaking "Eureka!" moments that revolutionized their respective fields.

Archimedes, a genius of ancient Greece, reportedly had his moment of insight while submerging himself in a bath. As he observed the water level rising due to his presence, he suddenly understood the principle of buoyancy. In a burst of inspiration, he leaped out of the tub, exclaiming "Eureka!" which translates to "I have found it!" Archimedes' discovery not only explained why objects float or sink but also laid the foundation for hydrostatics and other scientific advancements.

Centuries later, Albert Einstein, the iconic physicist, is said to have found himself grappling with the complexities of his theory of relativity. As he soaked in his bathtub, staring at the ceiling, he contemplated the mysterious nature of light and time. In a moment of clarity, he realized that the path to enlightenment lay in understanding the relationships between space, time, and gravity. This realization led to his formulation of the theory of relativity, which transformed our understanding of the cosmos.

While the veracity of these bathtub stories may be debated, they serve as vivid reminders of the unexpected places where innovation can strike. The bath, a seemingly mundane sanctuary, became the backdrop for profound insights that altered the course of human knowledge. Whether or not these anecdotes are entirely true, they embody the essence of creativity: that ideas can emerge from the most unlikely moments, even in the depths of relaxation.

Luckily, you don’t need a bathtub to be a top notch innovator. Here are 12 innovation helpers.

1. Find your creative flow

   Wake up early. Or stay up late. Drink a beer or a coffee. Go outside. Lock yourself in a cabin. Whatever works for you.

   

2. Carry a notepad or a small book at all times.

   Richard Branson mentioned that he carries the same type of notepads that schoolchildren use. He keeps them all.

3. Yes, No and Po

   One of my favourites. "Yes, No and Po" by Edward de Bono introduces 'Po' as a third option in decision-making, encouraging creative alternatives beyond traditional yes or no choices.

4. Sakoku

   Sakoku is interesting. Sakoku was “Japan under isolation”. Isolation nurtured unique ideas within Japan, shielded from external influences, fostering distinct cultural and artistic innovations. You can “Sakoku” yourself.

5. Brain writing.

   Brainwriting encourages diverse idea contributions from team members, fostering a collaborative and inclusive approach to innovation. The difference between brain writing and brainstorming is that the ideas from the lowest ranked or quietest person in the room will get a fair treatment in the process.

6. Design Thinking

   Design thinking fosters creativity by emphasizing empathy, iterative problem-solving, and user-centered innovation, yielding novel and effective solutions. I find it is quite important to be the least knowledgable person in the room. What I mean by that is by having high caliber, and diverse, people work through a problem with design thinking, you are going to get great results.

7. The SCAMPER technique

   SCAMPER technique sparks creative ideas by prompting alterations to existing concepts, pushing boundaries of innovation. SCAMPER prompts us to break free from conventional thinking by asking questions about how we can Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, or Reverse elements of a concept.

8. Look at patents, study them widely and deeply.

   It is theorised that patents hold a significant fraction of the entire knowledge-base of mankind; Potentially encompassing around 80-90% of innovations and technological advancements.

   You can start by searching Google Patents.

9. TRIZ

   Another favorite of mine. TRIZ (Russian acronym for ‘Theory For Inventive Problem Solving’) is a problem-solving method that taps into inventive principles and patterns to solve complex challenges across various domains. I used TRIZ when I designed a toy car using ChatGPT and Midjourney.

10. Avoid Multitasking

    Multitasking divides focus, hindering deep thinking needed for creative breakthroughs. Quality suffers as attention spreads thin.

11. The Concept Fan method

    The Concept Fan method encourages divergent thinking, allowing you to consider multiple dimensions, applications, and adaptations of the initial idea.

12. Morphological Analysis

    Morphological Analysis sparks creativity by dissecting challenges into parameters, allowing innovative solutions to emerge through unique combinations.

13. (Bonus!) Subscribe to my newsletter and twitter/X.

    Innovate, Build, Grow! is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

Why did it fail?

How about the ones that succeeded? Why did they succeed?

If you are anything like me then you might have given a single reason why the successes were a success and a stack of reasons why the failures were failures.

There might be something in this.

Our fascination with dissecting failures often outshines our celebration of successes.

Why?

It's not about dwelling on shortcomings, but rather embracing the treasure trove of lessons hidden within setbacks. Failures, like hidden gems, offer us a chance to understand the intricate mechanics of innovation. They are the cryptic puzzles that, once unraveled, get rid of the blockers and reveal the blueprint for success. Through failure analysis, we uncover the balance between audacious risks and meticulous planning, guiding us toward more calculated leaps in the realm of creativity and progress. We try to extract their wisdom.

So, failure is a great teacher. Or is it?

Failure indeed dons the mantle of an invaluable mentor. It acts as a crucible in which ideas, theories, and strategies undergo the ultimate litmus test. Failure forces us to confront the gaps in our assumptions, the flaws in our execution, and the blind spots in our innovation process. Every stumble, every setback, and every misstep unveils insights that textbooks and lectures could never convey.

However, "fail fast, fail often" is not a carte blanche to haphazardly court defeat.

It's not the failure itself that imparts wisdom; it's the introspection and analysis that follow. Failure, when met with honest reflection and a thirst for improvement, transforms into a remarkable tutor.

The real alchemy of innovation occurs when failure is meticulously examined, dissected, and its lessons infused into the very fabric of our endeavors. It's the ability to recognize patterns, identify root causes, and recalibrate strategies that distinguishes a true innovation practitioner.

Moreover, while failure might illuminate one facet of the innovation landscape, it's not the sole beacon. Successes too possess an arsenal of teachings. The victories achieved through innovative thinking demonstrate what works, vindicating theories and strategies while emboldening the spirit of exploration.

Maybe you are agreeing so far. But I’m not done. We have two reasons why someone might be stuck:

1. They fail to introspect or retrospect on successes and failures.

2. They introspect/retrospect and learn from the failure (or success). But take no action.

One can easily improve on #1 by in #2 but still be stuck. Let’s continue.

Why might someone be stuck?

One reason could that you might be too focused on the end goal.

Thinking so much about the big, shiny result that you forget to pay attention to how you're getting there. This is where a third level of retrospective thinking comes in.

Think about retrospection having a conversation with yourself about the journey, not just the destination. Instead of only thinking about the invention you want to create, you start asking questions like, "How can I approach this differently? What steps can I take to make progress? What can I learn from the obstacles I'm facing?" Explore the process of innovation, not just the final outcome. This kind of thinking helps you see the path forward more clearly.

By looking at failures from a process/systems perspective, you can unlock new ideas and find your way out of being stuck.

An example of an imaginary smartphone

Imagine a company that's been working on a new smartphone design, aiming to create something revolutionary. After a few months of effort, they realize that their progress has slowed down, and they're not making the breakthroughs they hoped for. Instead of simply focusing on the end result – the amazing smartphone – they decide to look at their process.

They gather their team and start asking questions like, "What steps have we taken so far? Are there any bottlenecks in our process? What can we learn from the challenges we've encountered?" They're not just looking at the final product; they're delving into their innovation journey. Through this introspection, they realize that their initial design had some flaws that were causing delays. They also uncover that some team members were struggling to communicate effectively.

With these insights, they make adjustments. They decide to break the project into smaller phases, each with specific goals. They also implement regular team check-ins to ensure everyone is on the same page. These changes might not have been obvious if they were only focused on the ultimate smartphone design.

In this example, the “process” retrospective helps the team understand the innovation process itself. By analyzing their journey and identifying areas that need improvement, they can navigate around obstacles more effectively. This type of thinking encourages them to adapt their strategy based on what they've learned, which can ultimately lead to more successful and innovative outcomes.

A retrospective of your systems helps you zoom in on your innovation process, making adjustments and learning from challenges along the way. It's like looking at a puzzle from different angles – you might discover insights that lead to the missing pieces of your innovation journey.

Embracing the stuck

Being stuck doesn't mean you're out of ideas, are a serial failure, or a serial winner that has lost mojo – it's just a temporary pause.

By embracing this thinking, you can shift your focus from just the end result to the journey itself. You'll learn from your mistakes, streamline your thoughts, and open up to collaboration.

With this enhanced retrospective thinking guiding you, you will find your way to successful growth.

Thoughts? Discuss on twitter here: https://twitter.com/growth_hc

Related reading…

Here’s what I did. Invented a problem statement. My problem statement is that a popular toy manufacturer needed some ideas for a new line of small toy cars to fill the ever evolving toy car selection in toy stores.

So I give this prompt:

“Using TRIZ principle 32 on color, give me the specifications for an innovation on toy cars. Be as innovative as possible.”

ChatGPT3.5 gave the following results:

TRIZ (Theory of Inventive Problem Solving) principle 32, also known as "Color Changes," suggests using changes in color or optical properties to improve the functionality or aesthetics of a system. Applying this principle to the innovation of toy cars, here's an idea that combines technology, engagement, and creativity:

(Chat GPT3.5) Innovative Toy Car: Augmented Reality Color Morph Racer

Description: Design a line of toy cars that leverage augmented reality (AR) and color-changing technology to create an interactive and engaging play experience for children. These cars would dynamically change colors based on various factors, enhancing both the visual appeal and imaginative play potential of the toys.

Specifications:

1. Color-Changing Body: The toy cars should have a specialized body material that allows for color changes through the application of an electrical current or temperature variations (Mark: Interesting!). This could be achieved using thermochromic or electrochromic materials, enabling the cars to switch colors with ease.

2. Integrated Augmented Reality (AR) System: Each toy car should come with an integrated AR system that includes a camera, sensors, and a small display. This system would interact with a companion AR app, available on smartphones or tablets. (Mark: Hmmmm. Jumping on a bandwagon maybe)

3. Companion AR App: Develop an AR app that pairs with the toy cars. The app would be used to control the color changes of the cars and provide additional interactive features, such as virtual tracks, obstacles, and challenges.

4. Color Customization: The app should allow users (both children and parents) to customize the toy car's appearance. Users can choose from a wide range of colors, patterns, and designs. This customization feature enhances creativity and personalization.

5. Interactive Gameplay: The AR app would provide a virtual environment in which the color-changing toy cars can race, navigate obstacles, and complete challenges. The cars' color changes could be linked to in-game power-ups, boosts, or specific interactions within the app's virtual world.

6. Educational Content: Integrate educational content within the AR app. As children interact with the virtual environment, they could learn about color mixing, physics concepts, and even basic coding principles.

7. Social Interaction: Implement a feature that allows children to share their customized cars and gameplay experiences with friends and family. This could foster social interaction and friendly competition.

8. Expansion Packs: Offer expansion packs that include new color patterns, virtual tracks, and interactive challenges. This encourages continued engagement and excitement over time.

9. Safety Considerations: Ensure that the toy cars and AR app are designed with child safety in mind. The materials used should be non-toxic, and the app should have parental controls to manage screen time and content.

10. Collectible Aspect: Introduce limited-edition color patterns or collaborations with popular franchises to create a collectible aspect, encouraging repeat purchases.

The color changing aspect would be expected from any individual or team of humans looking to innovate a new toy car. The AR aspect was unexpected but quite an interesting innovation. But I’m left wondering how this would actually be technically possible to create and manufacture.

Here’s what happens if I give the same prompt to GPT4 which is supposedly better at reasoning and chain of thought:

ChatGPT4 gave the following results:

Color-Changing Toy Cars

1. Overview: The Color-Changing Toy Cars are designed to change color based on different factors such as temperature, speed, light exposure, or user interaction. This adds an interactive and engaging element to the toy, making it more appealing to children and collectors alike.

2. Features:

A. Temperature-Sensitive Color Change:

• The car's exterior paint is made with thermochromic pigments that change color based on temperature.

• When the car is rolled over a warm surface, it changes color, allowing children to create tracks and patterns.

B. Speed-Sensitive Color Change:

• Integrated sensors detect the speed of the car, and the color changes according to different speed levels.

• This can be used to create races where the color indicates the leading car or to teach children about speed and motion.

C. Light-Responsive Color Change:

• The car's color changes in response to different light conditions, such as UV light or darkness.

• This can create a magical effect where the car appears different in sunlight versus indoor lighting.

D. User-Interactive Color Change:

• The car comes with a remote control or a mobile app that allows users to customize the color of the car.

• Children can choose their favorite colors or even design patterns, enhancing creativity and personalization.

E. Educational Aspect:

• The color-changing feature can be used to teach children about various scientific principles like temperature, speed, and light.

3. Materials and Technology:

• Thermochromic pigments for temperature-sensitive color change.

• Speed sensors and microcontrollers for speed-sensitive color change.

• Photochromic materials for light-responsive color change.

• Bluetooth or Wi-Fi connectivity for user-interactive color change.

4. Safety Considerations:

• All materials used must be non-toxic and safe for children.

• The design must include safeguards to prevent small parts from being a choking hazard.

5. Target Audience:

• Children aged 3 and up.

• Toy car collectors interested in unique and innovative designs.

6. Potential Extensions:

• Integration with augmented reality (AR) apps for enhanced play experiences.

• Collaboration with popular media franchises for themed color-changing cars.

By applying TRIZ Principle 32 on color, the Color-Changing Toy Cars offer an innovative and engaging play experience that can also be educational. The various color-changing mechanisms add layers of interactivity and excitement, making the toy cars more appealing and versatile.

Here we see that the color changing aspect has come up again, but what I appreciate more about the GPT4 response is that it has bothered to generate some idea about the materials and technology that would be needed to actually create it. After all, innovations are only meaningful if it’s possible to make them (as opposed to time machine patents). Speed sensitive and light responsive color changing were definitely more innovative additions than the output from 3.5.

So is GPT4 capable of more innovative generation than GPT3.5? I think it’s inconclusive with such a small and basic test. But GPT4 definitely seems to have an edge in ‘thinking’ things through more. Especially in this case where ‘being as innovative as possible’ was part of the prompt.

Let me know your thoughts on the app formerly known as twitter here:

https://twitter.com/growth_hc/status/1690902678988324864

And here is a patent diagram from the same application which confirms it is likely using EEG to achieve something:

The full patent application can be seen and discussed at WikiPatents.org here: US Patent Application 20230225659. Biosignal Sensing Device Using Dynamic Selection Of Electrodes

The patent is titled “Biosignal Sensing Device Using Dynamic Selection Of Electrodes” and in layman’s terms could easily have been titled as “A device that picks the best sensors, on the fly, to read body signals.” (Note, that this is a published patent application and has not been granted yet). The important part, as is of any patent, is the claims. Claim 1 is that this patent is for “1. A wearable electronic device, comprising: a housing; an electrode carrier attached to the housing and having a nonplanar surface; a set of electrodes including electrodes positioned at different locations on the nonplanar surface; a sensor circuit; and a switching circuit operable to electrically connect a number of different subsets of one or more electrodes in the set of electrodes to the sensor circuit” which in non-patent-agent speak translates to: “A wearable gadget with a part that carries sensors”. Sensors of which will measure biosignals (as explained in the 19 other patent claims). So we naturally start to think that this device will be used to scan someone’s brain signals as they use the AirPods to listen to music, watch a movie, or take part in a conference meeting.

I have seen this technology used across a few industries. One of which was educational technology that students in China were piloting, to mixed opinions, a device that could indicate to a teacher whether attention was fully on the lesson. Which, thankfully, has been rejected by parents now. I generated the below image in Midjourney but I think you can imagine just how this could look and how some educators might even ponder this being a good idea in the first place.

Another, much much cooler, application of this was in the form of a Star Wars force trainer. A brain-sensing hologram electronic game that allows kids to use the force to move an inanimate object.

What is EEG anyway?

EEG stands for Electroencephalogram. It's a test that doctors use to look at the electrical activity in your brain, kind of like how a video game console works.

Imagine your brain as a super powerful video game console. Instead of buttons and joysticks, it uses electrical signals to control everything you do, like moving, thinking, and even dreaming. So an EEG basically lets doctors see these electrical signals and compare them to other healthy/non-healthy brains in order to determine normal or abnormal patterns. Traditionally, doctors put a bunch of small, sticky patches (electrodes) on a patient’s head for maximum accuracy. These patches pick up the electrical signals from your brain and send them to the computer, which turns them into wavy lines that the doctors can look at. A typical application of EEG is used to look into neural problems like seizures or sleep issues.

Dystopian or Major Opportunity?

The patent application has seen mixed responses on social media so far. So is this inherently a dystopian thing where Apple will be listening and collecting data on your brainwaves, possibly. But they’re probably going to do it anyway. So rather than sit back and get upset about this, why don’t we as builders think of t

Here’s at least six applications that I think this technology could be useful for, for the good of mankind:

1. Monitoring elderly parents. (If they’re not hostile to the idea of course).

2. Improving your sales pitch. Imagine, being able to detect people's mood/tone changes during phone calls? Could you build an app to help keep you cool on sales calls?

3. Monitoring and determining activities which you should avoid in order to maintain healthy stress levels. Or at least telling your body in advance if you are about to get angry with something.

4. Performance optimization in sports and e-sports.

5. Baby/toddler (and pet?) communication. It’s an age old desire to want to know what our baby or toddler is exactly asking for. Could sensors help with this?

6. Getting better sleep. Something we all want. Imagine being able to determine the perfect playlist that will help us to get the best sleep imaginable?

That is just six from the top of my head. Of course we can probably all make a guess that Apple will use it for (yawn) neuromarketing to measure consumers' neural responses to advertisements, products, or experiences in order to optimize campaigns on user preferences.

But we can do so much more with this technology.

What are your thoughts? Let’s continue the discussion on “X” here: https://twitter.com/growth_hc/status/1685216509029957632

A common use of the 5 Whys technique in product management is to identify the root cause of a problem or issue affecting a product or its development process. By repeatedly asking "why," product managers can uncover the underlying reasons behind a problem and address them effectively. This technique helps in making informed decisions, implementing improvements, and preventing similar issues from arising in the future. It aids in streamlining processes, enhancing product quality, and optimizing the overall product management lifecycle.

Given that, I am always curious to see how product management techniques can be applied in other situations. I recently saw someone asking on twitter, whether they should do a giveaway.

My own experiences of twitter giveaways has been hit and miss. Either they bombed or they brought a lot of followers to my account, who later unfollowed because they were only in it for the giveaway. Not to mention, the new followers were also very untargeted and essentially had no impact on the growth of the product I was working on back then.

So I do wonder: If I used the 5 Whys technique would I have even done the twitter giveaways in the first place?

An example. Using 5 Whys to decide whether to do a giveaway on twitter.

Let's say you're a product marketing manager and you're considering running a giveaway on Twitter to promote your product. By using the 5 Whys technique, we can analyze whether it's a good idea or not.

1. Why do we want to do a giveaway on Twitter? Answer: To increase brand awareness and engage with our target audience.

   1. A follow up question here is whether twitter is the right place for that. Is it? If not, then you can probably stop at this Why.

2. Why do we need to increase brand awareness and engage with our target audience? Answer: Because we want more people to know about our product and develop a loyal customer base.

   1. Is our target audience really on twitter? If not, stop at this Why.

3. Why do we want more people to know about our product and develop a loyal customer base? Answer: Because increasing our customer base will lead to higher sales and business growth.

   1. Will increasing our customer base lead to sales? If yes, then continue.

4. Why is higher sales and business growth important? Answer: It's important because we want our company to be successful and financially sustainable in the long run.

   1. We’re getting somewhere.

5. Why is company success and financial sustainability important? Answer: It's important because it enables us to continue providing valuable products to our customers and support our employees.

   1. And we’re at Why number 5. If you made it this far, your idea probably has some legs.

Based on the analysis, we can be confident that a giveaway on Twitter could be beneficial to the brand. However, it's essential to ask more critical questions at each Why. Then plan the giveaway carefully, ensure it aligns with the target audience's interests, and measure its effectiveness to evaluate its impact on brand awareness, engagement, and sales growth.

By using the 5 Whys technique above, we have found that the primary motivation behind considering a giveaway on Twitter is to increase brand awareness, engage with the target audience, and ultimately achieve higher sales and business growth. We have also realized that the success and financial sustainability of our company are important for delivering value to our customers and supporting our employees. At any of the Whys, if we’re not convinced there’s a good answer to the question, we can always rephrase the question (with evidence to support it) and think again.

While this works and is interesting. It might be fitting a round peg into a square hole. What are your thoughts? We can discuss this more on twitter here: https://twitter.com/growth_hc/status/1678966054117310465

I wanted to know the effectiveness of those emails. So I built a system that would output a table like so:

If you look at the table, it has the email subject, the number of sends, and the number of times the people who were sent the transactional email actually did an action. I would put in a few actions to track. Usually to check if they did the action that was asked of them in the email, then whether they did any further or follow up actions.

What most people might look at here are the number of opens. Which can be hard to track and not always that reliable. You might even go a bit further and look at the number of clicks on a link - which also isn’t that great a measure of the effectiveness of your campaign.

The best part of this though, is that the way I built it was in the same MySQL database as our app data. So we had tables/logs of, let’s say, when a user had completed an action. So I was able to take the list of user_ids that we had sent an email to, and match it with whether or not they had completed an activity. This was much much more powerful

Needless to say, this was great. But how could I make this better? By 1. AB testing and 2. Segmenting.

AB testing was the easiest to start with. So what I did was something that would give me an output like this:

From here, I could see which transactional email led to more completions of an actual activity, and other activities that I wanted to track. Great. From this I could try out different messages and different designs of the email (note: plain text emails, in my experience, always seem to do better).

Here’s how my entire system worked:

1. I made the email templates using a third party tool. I copied the html from them and stored the raw html in my own database.

2. I made a MySQL database with a few tables, those were:

   1. One table to keep the templates in. (Used my own version of mail merge fields, denoted by curly braces - e.g. {{first_name}}

   2. One table to queue the emails. (So a table with the actual emails ready to be sent)

   3. One table to track the emails that were sent. This is the table that was queried later on to make the report output.

3. A cron job that does something like a mail merge. It takes all the accounts that will receive the email that particular day, split them down the middle for which to give the A and the B variants (Or however you want to do it. Maybe only 20% will go into the test. It’s up to you.), then create the “emails to send” in the queue table. Another cron job took care of sending the emails. I preferred to use something like SendGrid but you can choose your own and there might be better tools available for sending transactional emails these days.

I’m thinking that this kind of system would be easy now, if you hooked up your data to a powerful tool like Mixpanel or the likes. If anyone knows a much easier way to achieve what I did here, I’d be happy to learn.

So here’s an idea for the indie hacker/developer/buildinpublic community.

What if we take this a bit further and add some AI to the AB testing process. You could call it a service or SaaS that does:

“AI driven transactional email AB testing for user retention outcomes”

As in the title, here’s my idea:

1. Use the same mechanism as above.

2. Use AI or GPT to generate variants of the emails.

3. Use a simple script to determine which variant worked the best, in terms of activities completed after the email.

4. Rinse and repeat, by putting the winning email back into AI/GPT to create a variant of it.

5. If you want to go further, you can use AI to cluster segments of users together then do AB testing of emails on specific clusters/personas/use-cases. That would be quite powerful.

What do you think? Would this work? Is there something out there that can already do this? Chat with me at https://twitter.com/growth_hc/status/1676910727427428352 to debate and discuss.

Let me share this small nugget of information:

90% of Y Combinator startups fail.

That’s 90% of, arguably, one of the world’s strongest, most connected, most influential startup accelerators in the world. An organization that with all its might and collective wisdom would give the best chance of driving and influencing the outcomes of a startup.

Take away the Y Combinator, or any network of mentors and external help, and the chances diminish even further.

Are right to start feeling anxious about this? Probably.

Reading tweets from a lot of startup founders, I often see anxiety around whether a startup will fail or succeed. Especially whether a launch day on Product Hunt will result in favourable outcomes.

But you don’t want to fail. That’s not why you started this. So what to do?

Here’s an exercise that one of my mentors suggested that I do, many many years ago:

Write down 30 reasons why your startup is going to fail.

Use a pen and paper. Don't use a device.

Lined paper is great.

Here's what is important when doing this: make sure you write all 30. Do not stop at 5, do not stop at 10, do not stop at 20. Push for 30 reasons why your startup might fail.

By about reason number 12, you’ll start to run out of ideas. But keep pushing. Go deeper into the reasons why you might fail.

Why do this?

Writing down why your startup might fail, 30 times, can help with clarity because it forces you to think deeply about potential problems and challenges that could come up. By writing down these reasons multiple times, you are giving yourself the opportunity to explore different angles and perspectives. The exercise also helps you to process those issues and stop the cycle of feeling anxious about how things might go wrong and not having a mitigation plan.

The Sandcastle

Imagine you're building a sandcastle on the beach. Before you start building, it's important to think about what could go wrong. Maybe the waves could wash away your sandcastle, or the wind could blow it down. By considering and processing these possibilities first, you can come up with ways to prevent or overcome these potential issues.

Similarly, when starting a business, it's important to identify potential obstacles that could lead to failure. By writing them down multiple times, you are reinforcing your understanding of the risks and getting a clearer picture of what might go wrong.

This exercise helps you develop a better understanding of the potential weaknesses of your startup. It allows you to brainstorm solutions and strategies to mitigate those risks. It also helps you prepare mentally for the challenges you might face along the way.

It is important to approach this exercise with a positive mindset. By acknowledging the potential pitfalls, you are better equipped to address them and increase your chances of success. So, don't be discouraged by the exercise. Instead, use it as a tool to gain clarity and improve your startup's chances of thriving.

And also

Once you accept that failure is a possible outcome and you make peace with it. Only then can you free up your mental resources to direct 100% of it to asking “but what if everything goes right?”

Agree or disagree? Reply to my recent tweet to discuss:

https://twitter.com/growth_hc/status/1668290622174949377

In 2004 (in true Google style on April 1st) Gmail was launched to compete as a free email service. The incumbent at the time was Hotmail, a dominant player in free email. Hotmail, famously utilised a well known growth hack, now known as the “I love you” growth hack. By mid-2012, Gmail reportedly surpassed Hotmail as the world's most popular email service in terms of user accounts.

So how did they manage this? When Hotmail was clearly the dominant player? Sure there was:

1. An exclusivity tactic. When Gmail was first introduced, it was available to a limited number of users through an invitation-only system. This exclusivity created a sense of curiosity and desire among people who were eager to try out this new email service.

By restricting access, Gmail made people feel special and privileged to be part of the selected few who had the opportunity to use it. This exclusivity strategy helped generate buzz and word-of-mouth marketing, as those who were lucky enough to have a Gmail account shared their positive experiences with others. Ultimately, this approach played a significant role in driving initial traction for Gmail and establishing it as a popular and sought-after email platform.

and

2. A better offer. When Gmail was first launched, it offered a better deal to free email subscribers compared to other email services.

Most email providers at that time offered limited storage space for users' emails, typically around 2 to 4 megabytes. However, Gmail provided a whopping 1 gigabyte of storage, which was significantly more than what others were offering. This meant that users could store a lot more emails and attachments without worrying about running out of space. Gmail's generous storage offering was a major selling point and attracted many users who were looking for a better email experience. This unique and improved offer helped Gmail stand out from the competition and contributed to its initial success in gaining user traction.

But

Would that be enough to someone who has all their contact details, and all their email history in hotmail? Not to mention the tedious task of telling all your friends and contacts to write to you at the new email from now on. And worse, the issue that people will still, for some time, continue to send emails to your old email address.

These “lock-ins” are known as a switching costs.

Gmail’s Switching Cost Challenge

Gmail faced this exact “switching cost” when trying to attract subscribers away from Hotmail. Switching cost refers to the difficulties and inconveniences associated with moving from one product or service to another. In the case of email services, the switching cost included tasks such as transferring contacts, notifying others about the new email address, and adapting to a different user interface. To overcome this hurdle, Gmail implemented these strategies:

First, they made it easy for users to import their contacts from other email services, including Hotmail. This reduced the effort required to transition to Gmail.

Second, Gmail allowed users to forward emails from their old accounts to their new Gmail addresses, ensuring they wouldn't miss important messages during the transition.

Lastly, Gmail emphasized its user-friendly interface and advanced features, such as powerful search capabilities and efficient organization tools, to persuade users that the benefits of switching outweighed the associated costs. By addressing these switching costs and offering compelling advantages, Gmail successfully enticed subscribers to make the switch from Hotmail to their service.

Read again:

1. Ease of transferring/importing contacts, to

2. Email forwarding. Which meant that there’s no friction when receiving emails to a user’s old email address.

3. A superior service. After all, you would not want to cross hurdles for an inferior service. Gmail had to provide a much better offer than Hotmail in order to win.

Other examples of switching costs:

1. Netflix: Netflix revolutionized the way people consume movies and TV shows by offering a subscription-based streaming service. To overcome the switching costs associated with traditional video rental stores like Blockbuster, Netflix introduced a convenient DVD-by-mail service. Customers could easily create a queue of movies online and receive them at home. Eventually, Netflix transitioned to streaming, providing a vast library of content accessible anytime, anywhere. By eliminating the need to visit physical stores and offering a wider selection of movies, Netflix reduced the inconvenience and costs of renting, leading to its dominance in the streaming industry.

2. Uber: Uber disrupted the traditional taxi industry by addressing several switching costs. One key challenge for customers was the difficulty of hailing a taxi, especially during peak hours. Uber's app-based ride-hailing service solved this problem by allowing users to request a ride with just a few taps on their smartphones. Additionally, Uber provided upfront pricing and cashless payments, eliminating the need to carry cash or negotiate fares. By offering a more convenient, efficient, and transparent alternative to traditional taxis, Uber successfully attracted customers and became a leading player in the transportation market.

3. Spotify: Spotify transformed the music industry by providing a streaming platform that overcame the switching costs of purchasing and managing physical music albums or digital downloads. With Spotify, users gained access to an extensive music library on their devices without the need for purchasing individual songs or albums. By offering a personalized music experience, curated playlists, and social sharing features, Spotify created a compelling alternative to traditional music ownership. This significantly reduced the financial and logistical barriers associated with building a personal music collection, leading to its widespread adoption and dominance in the music streaming market.

Thats all well and good when we are looking at history and the selection bias that comes along when studying winners. But how can this be of relevant to an up and coming app that an indie hacker is working on?

Can we use a framework for identifying switching costs?

Of course we can.

One framework that can be helpful for startups and indie hackers in identifying switching costs is the "Cost-Benefit Analysis" approach. This involves analyzing the factors that make it challenging for customers to switch from an incumbent product or service to a new offering. Here's a simplified breakdown of the framework:

1. Evaluate Customer Investments: Assess the investments (both tangible and intangible) that customers have made in the existing solution. Tangible investments can include money spent on the product or equipment, while intangible investments can include time, effort, and learning curve associated with the current solution.

   An example of a real company that did this is Spotify.

   Spotify, as a leading player in the music streaming industry, evaluated customer investments when strategizing to gain market share from competitors. Spotify recognized the importance of understanding the investments customers had made in other music platforms and the potential switching costs associated with transitioning to their service.

   Spotify assessed the tangible and intangible investments customers had made in competitors' platforms. This included factors such as subscriptions, playlists, and accumulated music libraries. They also considered the emotional attachment customers had towards their existing music platforms, like familiarity with the user interface and connections with friends or communities.

   By evaluating customer investments, Spotify aimed to identify the potential barriers that could prevent users from switching to their service. They developed strategies to address these switching costs, such as providing tools to seamlessly import playlists from other platforms and offering personalized recommendations based on users' existing music preferences.

   Furthermore, Spotify leveraged the network effects present in the music streaming space. They introduced social sharing features that allowed users to share and discover music with their friends, creating a sense of community within the platform.

   Through the evaluation of customer investments, Spotify designed its product and marketing strategies to minimize the perceived switching costs and make the transition to their service more enticing for users. This approach played a significant role in their success in attracting customers and gaining market share in the music streaming industry.

2. Examine Integration and Compatibility: Consider the level of integration and compatibility of the incumbent product with other systems or services used by customers. The higher the integration, the more difficult it becomes for customers to switch without disrupting their existing workflows.

   A real example from a company that did this, is Tesla.

   Tesla, an electric vehicle manufacturer, focused on ensuring seamless integration and compatibility with their vehicles.

   Tesla examined the integration of their electric cars with existing charging infrastructure. They strategically invested in building their own network of Supercharger stations, which provided high-speed charging for Tesla vehicles. By expanding this network globally and making it easily accessible to their customers, Tesla aimed to alleviate concerns about charging availability and compatibility, thus reducing the switching costs associated with transitioning to electric vehicles.

   Furthermore, Tesla emphasized compatibility with existing charging standards. They ensured that their vehicles could charge using widely available charging stations using industry-standard connectors, making it convenient for customers to charge their cars at various locations, including public charging networks.

   By examining integration and compatibility, Tesla addressed the crucial concerns customers had about charging infrastructure and compatibility with existing systems. This strategic focus on integration and compatibility played a significant role in Tesla's success in gaining market share in the electric vehicle market, establishing them as a leading player in the industry.

3. Assess Data Migration and Transfer: Evaluate the challenges and costs associated with migrating or transferring data from the incumbent solution to the new offering. The more data that needs to be moved and the more complex the process, the higher the switching costs.

   A real example from a company that did this, is Apple.

   When Apple introduced their iPhone devices, they recognized the importance of helping customers seamlessly transfer their data from their existing smartphones to their new iPhones.

   Apple developed a tool called "Move to iOS" that allowed Android users to transfer their contacts, messages, photos, and other data to an iPhone. This tool simplified the data migration process and reduced the switching costs associated with transitioning from Android devices to iPhones.

   By assessing the challenges customers faced when transferring data, Apple provided a solution that made it easier for users to switch to their ecosystem. This approach helped Apple in gaining market share from competitors by addressing a significant barrier that customers often encountered when considering a switch to a different smartphone platform.

4. Analyze Learning Curve and Training: Consider the time and effort required for customers to learn and adapt to the new solution. A steep learning curve or the need for extensive training can act as significant switching costs, especially for complex products or services.

   A real example from a company that did this, is Microsoft.

   Although it was a long time ago, Microsoft recognized that users who were already familiar with competitors' office software might hesitate to switch due to the learning curve associated with adapting to a new platform.

   To address this concern, Microsoft designed their Office suite to have a user-friendly interface and similar functionalities to competitors' products. They aimed to minimize the learning curve for users transitioning from other office software.

   Additionally, Microsoft provided comprehensive training resources such as tutorials, online guides, and support documentation to help users quickly learn and navigate their Office suite. They also offered certifications and training programs to enhance users' proficiency and confidence in using their software.

   By analyzing the learning curve and providing robust training resources, Microsoft aimed to reduce the perceived difficulty of switching to their Office suite. This approach played a significant role in their success in gaining market share from competitors and establishing Office as the industry-leading productivity software.

   Nowadays, Microsoft remains a strong competitor in the market because the majority of office workers are very familiar with the Office suite of tools.

5. Account for Social and Network Effects: Examine the impact of social and network effects associated with the existing solution. If customers rely on network effects, such as a large user base or established communities, switching to a new solution may result in losing these network benefits.

   A real example of a company that did this is Facebook.

   When Facebook was striving to expand its user base and compete with existing social networking platforms, they recognized the significance of social and network effects in attracting and retaining users.

   Facebook focused on building a platform that allowed users to connect and interact with their friends and acquaintances. They understood that the more friends and connections a user had on the platform, the more value they would derive from it. To leverage this, Facebook employed various strategies:

   1. Viral Growth: Facebook implemented features that encouraged users to invite their friends to join the platform. By leveraging existing social networks, Facebook created a viral loop where new users would join through their connections, further expanding the user base.

   2. Group and Community Features: Facebook introduced group and community features that enabled users to join and participate in various interest-based communities. This fostered a sense of belonging and engagement within the platform, strengthening social and network effects.

   3. News Feed: Facebook introduced a personalized news feed that showcased updates and activities of users' friends. This real-time stream of information kept users engaged and encouraged interactions, enhancing the network effects as users constantly discovered and connected with others.

By accounting for social and network effects, Facebook created a platform that incentivized users to invite their friends, participate in communities, and engage with the platform. This strategy enabled them to gain a substantial user base, surpassing competitors and becoming one of the dominant players in the social media industry.

By systematically evaluating these factors, startups can gain insights into the switching costs customers may face and identify opportunities to develop strategies and incentives that mitigate those costs. Understanding and addressing these barriers can help startups position their products or services effectively, attract customers, and gain a competitive edge in the market.

If you found this article insightful, do follow me at @growth_hc where we can discuss more.

Whilst not specifically the “I love you” growth hack, a lot of email marketers have referred to this as the “I love you” growth hack.

The "I love you" growth hack is a marketing technique where companies encourage their users to refer others to their service or product by using the phrase "I love you." It involves prompting users to send emails or messages to their contacts expressing their affection while also promoting the product or service. By leveraging the emotional impact of the phrase, companies aim to capture the attention and interest of recipients, encouraging them to explore or sign up for the offering. The goal is to create a viral effect, with users spreading the message to their network, ultimately leading to increased user adoption and growth for the company.

This tagline was automatically included in the signature of every email sent by Hotmail users. As a result, every email recipient was exposed to the promotional message, creating a viral effect. Recipients who found the service intriguing or useful could click on the link to sign up for their own free Hotmail account.

The genius of this tactic was that it leveraged the existing user base as a powerful distribution channel. As Hotmail users sent emails to their friends, family, colleagues, or anyone else, the promotional message spread organically. This word-of-mouth marketing approach contributed to a rapid increase in Hotmail's user numbers.

Within just a few months, Hotmail attracted millions of users, largely due to the viral nature of their marketing strategy. This growth hack allowed Hotmail to establish itself as one of the pioneering web-based email services and played a significant role in their success. By the year 2000, Hotmail had more than 60 million users.

Did Hotmail pioneer the “I love you” growth hack?

Contra to popular belief, Hotmail did not pioneer the "I love you" growth hack. It actually doesn't have any specific pioneer or originator. But it has been employed by various companies as a viral marketing tactic to incentivize users to share the service with their contacts.

The use of emotional or attention-grabbing phrases like "I love you" in marketing emails or referral programs is a strategy aimed at leveraging the recipients' curiosity and desire to connect with something positive or sentimental. By tapping into these emotions, companies hope to increase the chances of recipients engaging with the message and subsequently signing up for the service.

Who has used the “I love you” growth hack successfully, other than Hotmail?

While there have been various viral marketing campaigns and tactics used by companies to drive growth, anything similar to a phrase like "I love you" hasn't been a prominent element in those campaigns. But if there has been please contact me on twitter to correct me.

Will the “I love you” growth hack work in 2023?

The effectiveness of the "I love you" growth hack in 2023 might vary. While using emotional phrases like "I love you" can grab people's attention, it may not always work as expected. People in 2023 are much more aware of marketing tactics, due to exposure, and may be skeptical of such approaches. Additionally, spam filters and privacy concerns make it harder for unsolicited messages to reach recipients. So, while the "I love you" growth hack may still have some impact, it might not be as successful as it was in the past.

For a startup, and especially a SaaS, having a moat is critical to its success, as it helps the to maintain a competitive edge in the market and sustain growth over time. Without a moat, a startup or SaaS is vulnerable to losing its customers (churn) and market share to competitors who can offer better products, services, or pricing.

A moat can take many forms, such as:

1. Intellectual Property: This can include patents, trademarks, copyrights, or trade secrets that protect a startup's products or technology from being copied by competitors.

2. Network Effects: When a product becomes more valuable as more people use it, this is called a network effect. Companies like Facebook and LinkedIn have strong network effects, as the more people that join these platforms, the more valuable they become for everyone.

3. Brand: A strong brand can be a moat as customers are often willing to pay a premium for a brand they trust.

4. Cost Advantages: Startups that can produce their products or services at a lower cost than their competitors can offer lower prices or better margins.

5. Switching costs: A switching cost moat is a barrier that makes it difficult for customers to switch from one SaaS provider to another. This can be due to a number of factors, such as: data lock-in, integrations, and familiarity amongst users who would need to go through training in order to switch.

Having a moat is essential for a startup to succeed long term. It not only protects the business from competitors but also creates a barrier to entry that makes it difficult for new entrants to compete in the same space. It is not surprising that this is always one of the first questions asked by early stage investors.

A strong moat can give a startup a sustainable competitive advantage that can lead to long-term growth and success.

Some examples of SaaS businesses with a strong moat are:

1. Salesforce

Moat type: Network effect

How it works: Salesforce's platform is used by millions of businesses around the world. This network effect makes it very difficult for new entrants to compete, as they would need to attract a large number of users to their platform in order to be successful.

2. Adobe

Moat type: Switching costs

How it works: Adobe's products are used by businesses of all sizes. These products are often integrated with each other, which makes it difficult for businesses to switch to a different platform. This is because they would need to invest a lot of time and money in migrating their data and processes to a new platform.

3. Microsoft

Moat type: Brand

How it works: Microsoft is one of the most well-known brands in the world. This brand recognition gives Microsoft a significant advantage over its competitors. Businesses are more likely to choose Microsoft products because they are familiar with the brand and trust its products.

4. Zoom

Moat type: Intellectual Property

Zoom is a cloud-based video conferencing platform that allows businesses and individuals to communicate face-to-face over the internet. Zoom has a strong moat built around its intellectual property, which includes its patented video compression technology, its user interface, and its ecosystem of integrations with other applications. This intellectual property makes it difficult for competitors to imitate Zoom's platform and offer a comparable product.

5. Wix

Moat type: Cost Advantages

Wix has a strong moat built around its cost advantages, which include its economies of scale, its low-cost workforce, and its efficient operations. These cost advantages allow Wix to offer its products at a lower price than its competitors, which gives it a significant advantage in the market.

So how can you apply this to your startup or SaaS?

There's some questions to ask yourself about your startup or SaaS business:

1. What are the switching costs it will take to get users to use your product rather than the incumbent? And what switching cost will your product or service create that will prevent users from switching again?

2. What is my unique value proposition? What makes my product or service different from the competition? How will I deliver on that value proposition? SaaS founders should obsess about this as it plays a very strong part in sales and retention too.

3. What will my network effects be? How will my product or service become more valuable as more people use it?

4. What are my intellectual property assets? Do I have patents, trademarks, or other intellectual property that can protect my business?

5. What are my brand assets? Do I have a strong brand that customers trust? If I don't, then how will I build that?

6. What are my customer relationships? Do I have strong relationships with my customers that would make them reluctant to switch to a competitor?

Another great resource I would recommend here is the book Business Model Generation by Alexander Osterwalder, Yves Pigneur, and a host of contributors. In this book, the Business Model Canvas is presented where value propositions and customer relationships form a good chunk of mapping a business model.

What I haven't mentioned in this article is supplier relationships and distribution channels as moats. And I'm sure there are lots of other ways to create moats too.

What are your moats?

Feel free to add to the discussion on moats for SaaS? You can reply to my thread on twitter here: https://twitter.com/growth_hc/status/1657279927874637827

It’s completely free to use.

It’s connected directly to Google.

Will it kill ChatGPT? Let’s go through five killer features where I think Bard is already winning.

1. The elephant in the room, the year 2021.

We all know at this stage that ChatGPT has limited world knowledge beyond 2021. Yes, ChatGPT is still living in a Covid-riddled world. Google’s Bard on the other hand has up to date knowledge up to today (seemingly).

Let’s test a prompt. What is the fastest growing company in 2023. The results are good!

2. Bard is directly connected to Google. And will give you an option to search further about your prompt once the result has been given.

3. You can summarize a web page.

In the following prompt, I’ve asked Bard to summarize a webpage about trademark filings. It’s provided me not just a summary of the webpage but has expanded on it with more knowledge about this topic.

4. It can explain a piece of code.

In this prompt, I’ve given bard a piece of random blockchain related code from the internet. This is what Bard says about it:

5. It’s much much easier to export the response.

If you use ChatGPT on mobile, you’ll understand the pain.

And a bonus: The response comes in multiple drafts.

This is just the beginning of a huge leap in the way we work. I’m excited to exploit this technology as much as possible to see how it can help with innovation across many domains.

You can read this post in tweet format here. It would help this newsletter lot if you could give it a like and a retweet:

https://twitter.com/growth_hc/status/1656938001895940096

The value Bitly provides to its users drives the next step in the growth loop. Users who see the value in the data Bitly provides are more likely to create more shortened links and share them more frequently. This, in turn, creates more data for the user to analyze, leading to a continuous loop of data creation and analysis.

Bitly also implemented social proof into their growth loop by allowing users to see how many times a link was clicked. This social proof acts as a motivator for users to continue using Bitly, as it demonstrates the value their links are providing to others. It is commonly used as a way to track the effectiveness of a link and I have always found it useful for a very fast and dirty way of AB testing call to actions on links.

Bitly's growth loop is powered by the value it provides to its users, the social proof it generates, and the continuous creation and analysis of data. By continually improving the service, Bitly has been able to maintain a loyal user base while attracting new users through word of mouth and referrals.

This comes from a real requirement that I once had. There's players out there that claim to do it but I haven't seen anyone who does a "basic" version of this (e.g. There's Zendesk but their pricing gets sizable because of all the other features they have, which are not used.)

Use Case

As a small company, but with more than one customer service agent, there's a need for a solution where multiple customer support agents can respond to customers via a single WhatsApp account. Yes, logging in on different devices is currently possible but there needs to be some level of sophistication, such as assigning tickets to a particular agent, and marking tickets done/resolved or even escalating them to JIRA. This is the basic value that a customer support team needs.

Existing Solutions / Incumbents / Problems with incumbents.

Whilst there are solutions for messaging customers on WhatsApp, they are usually restricted to one agent per WhatsApp number. This is because WhatsApp API does not support group chats (to my existing knowledge).

Zendesk. Too big. Too expensive

Qontak. Cannot reply to WhatsApp messages one the customer responds.

Yellow.ai. Not used this yet. Might be worth looking into.

Sleekflow. Good solution but it still doesn't have the group chat function.

Potential Solution / Technical Wise

Create a very simple web or mobile interface for customer service agents to reply to WhatsApp messages through WhatsApp's API.

To overcome the main problem of the group chat limitation, messages from agents will send to a one to one WhatsApp chat but the difference is that the agents name will be enclosed in square brackets (or similar) to let the customer know which agent is responding.

Future bells & whistles / features.

Further advancements on this idea could be:

1. to allow the company to create AI generated auto-responses from LLMs that can reply to customers on a 24/7 basis. Again, there are solutions for this but they are usually too expensive, or not lightweight enough, and are not coupled with the multiple agent feature.

2. Integration with Jira. For escalating tickets to the development team.

What are your thoughts? Message me on twitter at @growth_hc. It's an idea that's worth a try.

In the world of SaaS (Software as a Service) businesses, there are two types of products: vitamins and painkillers. Vitamins are products that offer nice-to-have benefits, while painkillers are products that solve a specific, urgent problem.

It’s easy to think of a vitamin as a dietary supplement. Taking vitamins can improve your overall health and well-being, but they're not something you necessarily need to survive. On the other hand, a painkiller is like medicine that you take when you're in pain. It's something you need in order to feel better and function properly.

When it comes to SaaS products, vitamins are often things like social media management tools or project management software. These products are nice to have, but they don't necessarily solve a specific problem that a customer is experiencing.

Painkillers, on the other hand, are products like accounting software or customer relationship management (CRM) systems. These products solve a specific pain point that a customer is experiencing, such as managing finances or keeping track of customer interactions.

Three examples of Vitamins

1. Trello - Trello is a project management app that helps you organize and prioritize tasks using a visual board with lists and cards. While it's a helpful tool for managing projects, it's not necessarily something that you need in order to solve a specific pain point.

2. Slack - Slack is a popular messaging app that allows teams to communicate and collaborate in real-time. It's a convenient way to stay connected and share information, but it's not solving a specific problem in the same way that a painkiller app would. Although some of you might debate this.

3. Hootsuite - Hootsuite is a social media management tool that allows you to schedule and publish posts across multiple social media platforms. While it can be a helpful tool for managing your social media presence, it's not necessarily something you need in order to solve a specific pain point.

These three apps are all examples of vitamins in the SaaS space, as they provide helpful benefits but don't necessarily solve a specific, urgent problem for their users. They're still valuable tools for many businesses, but they're not the same as a painkiller app that solves a critical problem for its users.

Three examples of Painkillers

1. QuickBooks - QuickBooks is an accounting software that helps businesses manage their finances by tracking income and expenses, invoicing customers, and managing payroll. It's a painkiller app because it solves a specific, critical problem that businesses face in managing their finances (as is any accounting software).

2. Salesforce - Salesforce is a CRM (Customer Relationship Management) system that helps businesses manage their interactions with customers by tracking leads, managing contacts, and providing insights into customer behavior. It's a painkiller app because it solves a specific, critical problem that businesses face in managing their customer relationships.

3. Zoom - Zoom is a video conferencing app that allows people to connect and collaborate remotely through video calls, webinars, and screen sharing. It's a painkiller app because it solves a specific, critical problem that businesses face in communicating and collaborating with remote teams and clients. (You might ask “Why Zoom is a painkiller and not a vitamin like Slack is?” - Remember that Slack was designed for internal communication and Zoom for external. You can get by with other internal communication tools (email/whatsapp/etc) but Zoom was, at one time, king of video call software for communicating with third parties.

These three apps are all examples of painkillers in the SaaS space, as they provide solutions to specific, urgent problems that businesses face in managing their finances, customer relationships, and communication with remote teams. They're critical tools that businesses rely on to operate effectively and efficiently.

Is marketing a Vitamin more difficult than marketing a Painkiller SaaS?

Yes. Marketing a vitamin SaaS product can be more difficult than marketing a painkiller SaaS product.

The reason for this is that with a vitamin product, you're trying to convince potential customers that they need something that they don't necessarily need to survive. Vitamins are nice-to-have, but they're not essential. So, marketing a vitamin SaaS product requires a different approach than marketing a painkiller SaaS product.

With a vitamin SaaS product, you need to convince potential customers that your product will improve their lives in some way, even if they don't necessarily need it to solve a critical problem. This can be more challenging, as you need to find ways to create a desire for the product and show potential customers how it can make their lives better.

But that doesn’t mean we should stop building Vitamin SaaS projects. There are lots of successful, and useful, SaaS being used. (And think of this in terms of the actual vitamin & supplement market here too).

There’s three possible ways to market a Vitamin SaaS. These are:

1. To Create educational content: One effective way to market a vitamin SaaS product is to create educational content that showcases the value of your product. This could be in the form of blog posts, videos, or tutorials that help potential customers understand the benefits of using your product. By providing value upfront, you can establish trust with potential customers and make them more likely to consider your product. Video is a very powerful tool here.

One such product that used this method is HubSpot. HubSpot is a marketing and sales software that provides a suite of tools for businesses to attract, engage, and delight customers. While HubSpot does solve a pain point for businesses by making it easier to manage their marketing and sales processes, it also offers a range of features that can be considered a vitamin for businesses looking to grow their online presence.

To promote their vitamin features, HubSpot has created an extensive library of educational content, including blog posts, webinars, courses, and ebooks. This content provides valuable insights and practical tips on topics like social media marketing, content creation, and email marketing. All things that helped potential customers. By creating educational content that helps businesses improve their online presence, HubSpot has established itself as a thought leader in the marketing and sales industry and built a loyal following of customers and advocates.

In addition to its educational content, HubSpot also offers a range of free tools, such as its website grader and marketing grader, that provide insights into how businesses can improve their online presence. By providing value upfront and establishing trust with potential customers, HubSpot was able to grow its user base and become a leading provider of marketing and sales software.

2. Use social media to build a community: Social media can be a powerful tool for marketing a vitamin SaaS product. By building a community around your product on platforms like Twitter, Facebook, or LinkedIn, you can create a space for potential customers to engage with your brand and learn more about the value of your product. By sharing content, answering questions, and engaging with your followers, you can build trust and awareness for your product.

One example of a company that used social media to build a community to promote their vitamin SaaS product is Canva. Canva is a graphic design tool that allows users to create professional-looking graphics, posters, and presentations. While Canva does solve a pain point for businesses and individuals who need to create graphic designs but don't have the skills or resources to hire a professional designer, it also offers a range of features that can be considered a vitamin for users who want to improve their design skills and creativity.

To promote its vitamin features, Canva has leveraged social media to build a community of users and advocates. Canva has active accounts on all major social media platforms, including Facebook, Twitter, Instagram, and Pinterest. On these platforms, Canva shares inspiring designs, design tips and tutorials, and user-generated content. Canva also hosts regular design challenges and competitions on social media, which encourage users to showcase their skills and creativity using Canva.

By building a community of engaged users and advocates on social media, Canva has been able to create a strong brand identity and establish itself as a leader in the graphic design industry. Canva's social media strategy has also helped the company to acquire new users through word-of-mouth recommendations and referrals. Canva's success on social media shows that building a community around a vitamin SaaS product can be an effective way to promote the product and create a loyal user base.

3. Leverage influencer marketing: Influencer marketing can be a powerful tool for promoting a vitamin SaaS product, especially if you're targeting a specific niche market. By partnering with influencers in your industry or niche, you can tap into their audience and leverage their credibility to promote your product. This can help you reach a wider audience and build awareness for your product.

One example of a company that leveraged influencer marketing to promote their vitamin SaaS product is Hootsuite. Hootsuite is a social media management tool that allows businesses and individuals to manage multiple social media accounts from a single dashboard. While Hootsuite does solve a pain point for businesses and individuals who need to manage multiple social media accounts, it also offers a range of features that can be considered a vitamin for users who want to improve their social media strategy and engagement.

To promote its vitamin features, Hootsuite has leveraged influencer marketing to reach new audiences and build credibility. Hootsuite has partnered with social media influencers and thought leaders in the digital marketing industry to promote its product on social media and other channels. These influencers share their experiences and insights on how Hootsuite has helped them improve their social media strategy and engagement, and recommend the product to their followers.

By leveraging influencer marketing, Hootsuite has been able to reach new audiences and build credibility among its target market. Influencers have helped to promote Hootsuite as a tool that can help businesses and individuals improve their social media strategy and achieve their goals. Hootsuite's success with influencer marketing shows that partnering with trusted influencers can be an effective way to promote a vitamin SaaS product and build credibility with your target market.

So is your startup idea or product a vitamin or a painkiller? Once you decide on this, then you’ll be able to choose the right strategy and apply marketing tactics that are suitable. Lots of people shy away from Vitamins when creating SaaS, but there’s still a good reason to create vitamins and there’s plenty of creative ways to promote them.