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Part II of @eugenewei's most influential ideas: Invisible Asymptotes + my thoughts on it, visualised.
A thread on:
- What is Asymptotes
- Common types of Asymptotes
- How to identify Asymptotes
- Solutions to tackle Asymptotes
A thread on:
- What is Asymptotes
- Common types of Asymptotes
- How to identify Asymptotes
- Solutions to tackle Asymptotes
1/ We often focus on Product-Market Fit, but 'Product-Market Unfit' — when your product growth hits the top part of a S curve — is equally important.
Asymptotes is the factor that prevents your product from breaking through the S curve to unlock the next stage of growth.
Asymptotes is the factor that prevents your product from breaking through the S curve to unlock the next stage of growth.
2/ I like to think of Asymptotes with an adventure video game analogy:
The protagonist (company)'s goal is to always level up (increase market share) to collect as many gems (revenue) as possible.
The only way to do that is to defeat bosses (break asymptotes) at each stage.
The protagonist (company)'s goal is to always level up (increase market share) to collect as many gems (revenue) as possible.
The only way to do that is to defeat bosses (break asymptotes) at each stage.
3/ Being aware of the concept of Asymptotes helps immensely in product development — Asymptotes are typically governed by a single factor, we just have to find it .
However, it is actually challenging to foresee Asymptotes coming as we are soaked in the joy of finding PM-Fit...
However, it is actually challenging to foresee Asymptotes coming as we are soaked in the joy of finding PM-Fit...
4/ Examples of companies breaking Asymptotes:
Amazon: Main Asymptote in its early days are expensive shipping fees. What comes next is shipping speed. And currently it seems like it's search-driven shopping rather than casual-style online shopping.
Amazon: Main Asymptote in its early days are expensive shipping fees. What comes next is shipping speed. And currently it seems like it's search-driven shopping rather than casual-style online shopping.
5/ Examples of companies breaking Asymptotes:
Twitter: Initial main Asymptote is finding utility for scrolling others' tweets (early-day Twitter is just expressing ideas yourself in 140 chars). A bigger Asypmtote later is unlocking utility for the larger, general population.
Twitter: Initial main Asymptote is finding utility for scrolling others' tweets (early-day Twitter is just expressing ideas yourself in 140 chars). A bigger Asypmtote later is unlocking utility for the larger, general population.
6/ Knowing the common types of Asymptotes is helpful in foreseeing them.
a. Market Asymptotes: When your product can't cross the chasm from early adopters to mainstream.
Such Asymptotes can be due to timing issues and technological barriers.
a. Market Asymptotes: When your product can't cross the chasm from early adopters to mainstream.
Such Asymptotes can be due to timing issues and technological barriers.
7/ b. Friction Asymptotes: Frictions in a buying process can cause many potential transactions to die prematurely.
Frictions occur because:
- Consumers have limited patience
- They won't pay for something they think is not worth paying even if it's important (e.g: shipping)
Frictions occur because:
- Consumers have limited patience
- They won't pay for something they think is not worth paying even if it's important (e.g: shipping)
8/ c. Product-feature Asymptotes: your product feature that unlocks growth early on can be the limiting factor in the future.
This can be seen in features of social networks such as Instagram and Snapchat.
This can be seen in features of social networks such as Instagram and Snapchat.
9/ d. Distribution Asymptotes: You may have the right product for the right customers, but your growth will be constrained if you can't find where your customers are.
10/ If we can already know the common type fo Asymptotes, it's possible to identify these Asymptotes via :
- Funnel Analysis
- TAM Slicing
- Product Intuition
- Funnel Analysis
- TAM Slicing
- Product Intuition
11/ By checking the 'leakages' at each level of the sales funnel (e.g: talking to customers, tracking sales metrics), we can examine what are the biggest Asymptotes products are facing.
12/ It is also important to look at those who didn't jump into your funnel at all. This can be done with what I call TAM Slicing:
1. Assume everyone on Earth is your potential customer
2. List the reasons why they won't use your products.
Those reasons are the Asymptotes.
1. Assume everyone on Earth is your potential customer
2. List the reasons why they won't use your products.
Those reasons are the Asymptotes.
13/ Product Intuition. Period.
I don't have much thing insightful to say about this (except hire a great Product Manager lol).
I have always been curious what makes a great PM ? Can these traits be acquired and are they replicable ?
I don't have much thing insightful to say about this (except hire a great Product Manager lol).
I have always been curious what makes a great PM ? Can these traits be acquired and are they replicable ?
14/ Identifying product Asymptotes is only the first part of the equation, breaking through Asymptotes is the tough nut to crack. Some of my ideas on breaking Asymptotes :
- Hiding frictions in bundle
- Customer Segmentation
- Build Audience-first Products
- Hiding frictions in bundle
- Customer Segmentation
- Build Audience-first Products
15/ 'Bundling frictions' can be a smart way to temporarily break Friction Asymptotes if friction cannot be eliminated.
E.g: Amazon customers aren't willing to pay for shipping.
Solution: Hide the shipping fees in Prime memberships and declare free shipping to customers.
E.g: Amazon customers aren't willing to pay for shipping.
Solution: Hide the shipping fees in Prime memberships and declare free shipping to customers.
16/ Customer Segmentation : If you can't find a way to 'cross the chasm' and expand market share, the only thing you can do is to slice your current customer pool into more refined segments. Provide value-added services for those segments.
17/ The best solution to breaking Distribution Asymptotes - @david_perell's "audience-first product" model.
Build an audience first by creating value, understand their needs, then build the product.
Beautifully solves PM-fit, and you know exactly where your customers are.
Build an audience first by creating value, understand their needs, then build the product.
Beautifully solves PM-fit, and you know exactly where your customers are.
