Product adoption forces
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This document discusses factors that influence customer adoption of new products. It explains how perceived value and costs drive customer decisions. Value comes from addressing customer needs like functional, social, and emotional needs. The document outlines the customer journey from unaware to paying customer. It also discusses how focusing on value proposition, reducing costs and pains, and creating gains can improve adoption rates. Effective product management considers customer needs, context, and alternatives to shape the right value proposition.
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Product adoption forces
- 1. Product Adoption Building products users love Itamar Gilad @itamargilad itamargilad.com
- 2. Product management, strategy and growth consultant Previously product manager @Google, @ Microsoft and a number of startups. Previously Software engineer - @IBM and other companies. @itamargilad Itamargilad.com itamar@itamargilad.com Newsletter
- 3. Customer Journey Unaware Visitor Active Retained Paying itamargilad.com
- 4. Product Adoption Forces Your Solution What they are using now Value Costs Word of mouth Brand Attraction of the new Anxiety of the new Switchover costs Underserved Needs Triggers Marketing Choice architecture Direct sales Habits Endowment effect Social proof itamargilad.com
- 5. “It’s easier to make things people want than it is to make people want things.” Des Traynor / Intercomitamargilad.com
- 6. New Product Adoption Your Solution What they are using now Value Costs Word of mouth Brand Attraction of the new Anxiety of the new Switchover costs Underserved Needs Triggers Nudges Choice architecture Direct sales Habits Endowment effect Social proof itamargilad.com
- 7. Focus on Value, Costs, Needs Your Solution What they are using now Value Costs Word of mouth Brand Attraction of the new Anxiety of the new Switchover costs Underserved Needs Triggers Nudges Choice architecture Direct sales Habits Endowment effect Social proof itamargilad.com
- 8. Value is the property we assign to a thing—a product, a service, a person, an experience, that indicates how important, worthwhile or beneficial we think it is for us. itamargilad.com
- 9. Value Comes From Addressing Needs Maslow's hierarchy of needs Emotional Needs Help me feel good Functional Needs Help me get things done Social Needs Make me look good to others itamargilad.com
- 10. Functional Value - Help Me Get Things Done Jobs - Tasks, errands, projects… Health and Wellbeing Wealth - Money, Leisure time, Things, Experiences, Knowledge, Etc Physiological needs - Air (Breathing), Water, Food , Sleep, Clothing, Shelter, Sex Safety - Personal security, Financial security itamargilad.com
- 11. Needs Stay, Solutions Change Listen to music on the go itamargilad.com
- 12. ● Social acceptance ● Sense of belonging (family , friends, tribe,...) ● Receiving and giving love ● Connecting and maintaining connections ● Status, respect, confirmation ● Projecting the right image ● Observing others, comparing to ourselves ● Learning social norms and trends, fitting in ● Taking part in the conversation Social Value - Make Me Socially Accepted itamargilad.com
- 13. Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis non erat sem BuzzFeed - What makes something go viral? Source: What Makes Something Go Viral / Dao Nguyen The media is doing a social job for them - sending a social message they need to send. As a way to communicate with others. People are sharing media. Why? Why? This is me Explain my identity, my upbringing, my beliefs, without coming across as too self- absorbed or serious. itamargilad.com
- 14. ● Pleasure, delight ● Fun - entertainment, escapism ● Hope ● Self-esteem ● Self-reliance, autonomy ● Self fulfillment - sense of purpose and meaning, mastery, personal growth ● Aesthetics - beauty, symmetry, balance ● Spirituality ● Altruism - Contributing to a greater whole Emotional Value - Make Me Feel Good itamargilad.com
- 15. $40/year $50/year Cost and Complexity Cost What they use now Our Product Time required Physical effort Mental effort Social deviance Non-routine Time required Physical effort Mental effort Social deviance Non-routine source:B.J. Foggitamargilad.com
- 16. Example - Social Deviance Cost Social deviance Smartphone Social deviance Smartwatch Social deviance Smart glasses itamargilad.com
- 17. Needs of Businesses Reach out to target market Foster customer love / loyalty Take part in the conversation Build brand and protect it Create word of mouth Project the right image Spy on competitors Create sense of order, predictability Reduce risk Avoid failure Create and deliver value Sense of meaning Emotional Needs Help me feel good Social Needs Make me look good to others Gain revenue / funding Reduce costs Increase productivity Accomplish jobs Reduce risk Functional Needs Help me get things done itamargilad.com
- 18. Example: E-banking application Value prop: you’ll never have to physically visit the bank. Functional value Social value Emotional value Cost itamargilad.com
- 19. Patek Philippe Nautilus - 40,000 € Casio digital - 35 € Functional value Social value Emotional value Cost Functional value Social value Emotional value Cost Example: Sports Watches itamargilad.com
- 20. Value is in The Eye of The Beholder Product Lives in Alaska Lives in Amsterdamitamargilad.com
- 21. Value, Costs are Perceived Context Needs Alternatives Frames of reference Cost sensitivity Values & Beliefs Social norms Product Customer Perceived Value Perceived Costs itamargilad.com
- 22. Do certain things much better Do other things worse itamargilad.com
- 23. Customer Adoption Journey Unaware Visitor Active Retained Paying Value Proposition Aha! Moment Sustained Value Premium Value itamargilad.com
- 24. Funnel (Pirate) Metrics Acquisition Activation Acquired Active User Customer Non- Customer Revenue Customer Ret. Referral Retention itamargilad.com itamargilad.com
- 25. Before and After PMF Before PMF After PMF Customer acquisition Push Pull Customer activation Guidance, Assistance Self-serve Long term retention Low or zero Good, stable Conversion to purchase Hard, slow, low % Easy, fast, good % Referrals, word-of mouth Non-existent, negative High, positive itamargilad.com
- 26. Customer Jobs Tasks to perform, problems to fix, needs to satisfy (Functional, Social, Emotional) Gains Outcomes and benefits you customers want (required/expected/ desired) Pains Annoyances and risks tied to a job or preventing it from happening Pain Relievers How your products and services alleviate customer pains Gain Creators How your p&s deliver gains Product & Services How your products and services help your customer get their jobs done Value Proposition Canvas Customer ProfileValue Proposition Source: Strategyzer.comitamargilad.com
- 27. Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis non erat sem Questions Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis non erat sem @itamargilad | itamargilad.com
Editor's Notes
- Cost: the bank will give you the app for free. This app is all about functionality. No one sees you using it. But there are always costs - the app is complicated to use (ramp up cost), you need to use a physical token to sign in, there’s anxiety of doing something wrong, Opportunity: making an e-banking app that makes you feel good (you’re on top of your finances), or that makes you look good (UBS gold member).
- Pull vs. Push Self activation Closing deals Word of mouth