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Maybe an unpopular view:
There are many brilliant people building things for savvy customers. Great businesses can be built this way.
But in many cases, ignorant customers are often better than savvy ones. And targeting only savvy customers is often a mistake. (1/8)
There are many brilliant people building things for savvy customers. Great businesses can be built this way.
But in many cases, ignorant customers are often better than savvy ones. And targeting only savvy customers is often a mistake. (1/8)
To see the dangers of only savvy customers, look at the robo-advisor space.
People are put into basic low-cost ETFs at relatively low fees.
Robos have to generate massive scale in a competitive field to make up for not soaking customers with high fee funds/annuities/etc. (2/8)
People are put into basic low-cost ETFs at relatively low fees.
Robos have to generate massive scale in a competitive field to make up for not soaking customers with high fee funds/annuities/etc. (2/8)
Compare that type of business to the customers that can be gained by encouraging people to gamble in the market with a very simplistic UI/UX.
Think a stock is going up? Down? Buy some calls/puts! Who cares about implied vol or any of the Greeks... (3/8)
Think a stock is going up? Down? Buy some calls/puts! Who cares about implied vol or any of the Greeks... (3/8)
In the B2B space, the dumb customers aren't necessarily stupid, but internal politics can make them stupid.
They might go with company X because "No one got fired for going with company X."
If they cared, they almost always have a better & cheaper option than company X. (4/8)
They might go with company X because "No one got fired for going with company X."
If they cared, they almost always have a better & cheaper option than company X. (4/8)
A lot of the consumerization of IT is about giving people who need to satisfice their needs a way to get their jobs done simply and quickly.
The advanced options are often removed or hidden to streamline the UX for everyone else. (5/8)
The advanced options are often removed or hidden to streamline the UX for everyone else. (5/8)
In consumer, branding means that a producer making two products to similar specifications will see one product hitting the market at an absurdly large premium to the other.
(This thread was inspired by Jenner's financial exaggerations reminding me of her brand's premium.) (6/8)
(This thread was inspired by Jenner's financial exaggerations reminding me of her brand's premium.) (6/8)
Brands are valuable signals for those who want to satisfice. Knowing that someone invested in promoting a brand indicates that they have something to lose if they sell you junk.
But relying on brand alone risks buying a brand that is cashing in on its credibility. (7/8)
But relying on brand alone risks buying a brand that is cashing in on its credibility. (7/8)
It's hard to become the go-to choice for less savvy customers. You need to be a first mover, famous, or better in some way.
And satisfying your savviest customers is probably the safest way to not do something dumb. But it isn't necessarily the most lucrative strategy. (8/8)
And satisfying your savviest customers is probably the safest way to not do something dumb. But it isn't necessarily the most lucrative strategy. (8/8)
