Lenny's Podcast - Ignore some users to find product-market fit
The video explains a method to gauge customer satisfaction by asking users how they would feel if they could no longer use a product, with responses ranging from 'very disappointed' to 'not disappointed.' Sean Ellis found that companies with over 40% of users saying they would be 'very disappointed' tend to grow faster. To increase this percentage, companies should focus on users who are 'somewhat disappointed.' By identifying whether the main benefit of the product resonates with them, companies can refine their offerings. For example, in the case of Superhuman, the focus was on speed and time-saving features. Feedback from 'somewhat disappointed' users should be filtered to align with the core benefits appreciated by the most loyal users, disregarding suggestions that deviate from these core strengths.
Key Points:
- Ask users how they'd feel if they couldn't use the product anymore to gauge satisfaction.
- Focus on increasing the 'very disappointed' user percentage to over 40% for growth.
- Target 'somewhat disappointed' users to understand if the main product benefits resonate.
- Disregard feedback from 'not disappointed' users as they are unlikely to become loyal.
- Align product improvements with core benefits appreciated by the most loyal users.
Details:
1. 🔍 Exploring Customer Disappointment Metrics
1.1. Understanding the 'Very Disappointed' Metric
1.2. Prioritizing Product Features and Improvements
1.3. Strategic Use of Customer Feedback
2. 📊 Benchmarking for Business Growth
- The fastest-growing companies had more than 40% of customers who would be 'very disappointed' if the product was no longer available, indicating high customer satisfaction as a key growth driver.
- In contrast, companies struggling to grow had less than 40% of such customers, underscoring the importance of strong customer loyalty and satisfaction.
- Case studies suggest that implementing strategies to enhance customer engagement and satisfaction can significantly impact business growth.
- Benchmarking involves assessing customer feedback and satisfaction levels to identify growth opportunities and areas for improvement.
3. 🔎 Strategic Engagement with Feedback
- Target individuals who are somewhat disappointed with your product as they represent the biggest opportunity for improvement and conversion into advocates.
- Divide the somewhat disappointed group into two categories: those for whom the main benefit of your product resonates, and those for whom it does not. This allows for tailored communication strategies that address their specific concerns and needs.
- Avoid focusing on feedback from those who are very disappointed or not disappointed at all, as they are less likely to become advocates for your product, allowing for more efficient use of resources.
- Implement specific engagement strategies for each subgroup, such as personalized follow-ups or targeted offers, to effectively turn neutral or slightly negative experiences into positive ones.
4. 🎯 Refining Product Focus for Success
- Identify and focus on the core value that loyal users appreciate most about the product. For Superhuman, this was speed and time-saving.
- Disregard feedback from less enthusiastic users if it deviates from the core value that attracts the majority of loyal users.
- Avoid being pulled in multiple directions by implementing features that do not align with the primary value proposition.
- Ensure that product development is guided by what the most enthusiastic users love the most, rather than the varied requests of less satisfied users.