Tag / product management

Nir’s Note: This guest post was authored by Lisa Kostova Ogata, one of the first product managers at Farmville and a VP of Product at Bright.com (sold to LinkedIn). While at Zynga, Lisa learned how to shape user behavior, but in this essay she describes her surprise when she found herself unexpectedly hooked.

3316432769_6fcd31e674I don’t consider myself a gambler. I’m the person who places a minimum bet at the roulette table with the specific intent of getting a free drink — after all, it’s cheaper than buying one at the bar. Yet, there I was on a Monday night, glued to my computer screen for over an hour as I watched an online auction. I couldn’t resist.

Nir’s Note: In this guest post, Abhay Vardhan, discusses how to measure the strength of user habits with cohort analysis and retention rate. Abhay is a founder of Blippy.com and blogs at abhayv.com. Follow Abhay on Twitter @abhayvardhan.

Imagine an entrepreneur showed you the graph to the right for his new app called, “PinterestForDogs.”

You would think PinterestForDogs is doing quite well, right? Well, it depends.

A common mistake entrepreneurs make is to focus too much on user growth. Instead, it is often more important to ask: “Is the product creating a habit so users keep coming back?” and “How do we measure the strength of such a habit?” These questions are crucial because without establishing user habits, it is impossible to sustain a healthy user base. Eventually, all user acquisition channels saturate.

image4-notes (2)A few minutes before his helicopter touched down in a covert military base just outside of Kabul, Afghanistan, Tommy Thompson reached for his secret weapon. He was about to meet with top Afghan officials and he needed to ensure he hit his mark. But Thompson’s mission to the war-torn region in 2004 did not involve delivering guns and bombs. As the U.S. Secretary of Health and Human Services, the diplomat was there to win hearts and minds.

To accomplish his directive, assigned to him by the President of the United States, Thompson relied upon information delivered at exactly the right time and place. Minutes before each meeting with dignitaries, he was handed a top-secret intelligence briefing.

The CIA-prepared binder contained the most vital, and at times trivial, information on who the Secretary was going to meet. A quick glance provided the context for the meeting, notes from previous encounters, and often times contained personal information.

Nir’s Note: In contrast to last week’s post on the power of saying “no,” Eric Clymer shares how a creative attitude helped his team build a #1 ranked app. Eric was the lead developer of the “A Beautiful Mess” app and is Partner at Rocket Mobile.

In improv comedy, there are really only two words that matter: “Yes, and.” You share a premise, form a scene, create a character, and if everything works out right, kill the audience. Then, you try and do it again with another, “Yes, and.”

Before I began developing for iOS, I performed stand-up and improv as a hobby. I never thought “Yes, and” would apply to the development of software and how to work with clients. But, in my best Louis CK voice, “It TOTALLY did.” This essay is about what I learned working with the artists who hired my company to create “A Beautiful Mess,” an app that went to #1 in the App Store 15 hours after its release (it’s still near the top of the app store).

Nir’s Note: This guest post is by Max Ogles, a writer and entrepreneur based in Utah. Connect with him on Twitter at @maxogles.

Spotlight

In the beginning of 2010, when daily deals site Groupon was really hitting its stride and copycat businesses were popping up left and right, a small startup called Yipit was just getting off the ground. Yipit was involved in daily deals, too, but rather than creating the deals itself, Yipit simply aggregated the deals offered by the other companies to offer a nice tidy list in a daily email.

Like any startup, the Yipit team planned PR and marketing around their launch and hoped that the buzz would yield a nice base of users, who in turn would share with friends and create steady word-of-mouth growth. They managed to secure the spotlight from a major tech publication and then rode the wave. “After months of toiling away in obscurity, you feel like you’ve finally made it,” wrote Vinicius Vacanti, Yipit’s CEO, on his blog. “People know what you’re working on now. People all over the world are now using your product.”

5318665531_b62722f817Imagine walking into a busy mall when someone approaches you with an open hand. “Would you have some coins to take the bus, please?” he asks. But in this case, the person is not a panhandler. The beggar is a PhD.

As part of a French study, researchers wanted to know if they could influence how much money people handed to a total stranger using just a few specially encoded words. They discovered a technique so simple and effective it doubled the amount people gave.

The turn of phrase has been shown to not only increase how much bus fare people give, but was also effective in boosting charitable donations and participation in voluntary surveys. In fact, a recent meta-analysis of 42 studies involving over 22,000 participants concluded that these few words, placed at the end of a request, are a highly-effective way to gain compliance, doubling the likelihood of people saying “yes.”

2924868770_3caa81a1fdWe are a species that depend on one another. Scientists theorize humans have specially adapted neurons that help us feel what others feel, providing evidence that we survive through our empathy for others. We’re meant to be part of a tribe and our brains seek out rewards that make us feel accepted, important, attractive, and included.

Many of our institutions and industries are built around this need for social reinforcement. From civic and religious groups to spectator sports, the need to feel social connectedness informs our values and drives much of how we spend our time. Communication technology in particular has given rise to a long history of companies that have provided better ways of delivering what I call, “rewards of the tribe.”

The CES swarm.

This week, thousands of people swarmed the annual Consumer Electronics Show in Las Vegas. Looking from above, the scene resembled an insect infestation of scampering masses in a hive of the latest must-haves.

When considering our complex relationship with technology, perhaps it is useful to reflect upon the plight of one particular bug, the male julodimorpha beetle, who like us at times, can’t get enough of a bad thing. His misplaced desire is so powerful that it threatens the survival of his species.

While in flight, the male scans the dry ground of the Australian outback, looking for love. He seeks out the largest, reddest female he can find because these two traits, size and color, impart instinctual cues about the genetic fitness of his mate. Suddenly, the sight of his dream girl stops him mid-air. He composes himself and approaches the sultry beauty.

Note: I’m pleased to have co-authored this post with Sangeet Paul Choudary, who analyzes business models for network businesses at Platformed.info. Follow Sangeet on Twitter at @sanguit.

If there is one altar at which Silicon Valley worships, it is the shrine of the holy network effect. Its mystical powers pluck lone startups from obscurity and elevate them to fame and fortune. The list of anointed ones includes nearly every technology success story of the past 15 years. Apple, Facebook, Microsoft, eBay, and PayPal, have each soared to multi-billion-dollar valuations on the supreme power of the network effect.

But today, the power of the network effect is fading, at least in its current incarnation. Traditionally defined as a system where each new user on the network increases the value of the service for all others, a network effect often creates a winner-takes-all dynamic, ordaining one dominant company above the rest. Moreover, these companies often wield monopoly-like powers over their industries.

We are caught in an endless cycle of messaging hell and the pattern is always the same. First, a new communication system is born — take email or Facebook, for example. Ease-of-use helps the product gain wide adoption and reach a critical mass of users. And then things turn ugly.

Some crafty entrepreneur figures out how to exploit the system and starts building a business around it. He reaches millions of people and opens the floodgates to countless others who seek to emulate his methods. Inevitably, the messaging channel is deluged with crap, clogging the pipes of what was once an efficient mode of communication — again, email or Facebook.

Notification Noise

The latest messaging onslaught is hitting the notification systems on our smartphones. Those little red badges hovering over our app icons and urgent graphics along the top of our screens incessantly remind us of some task that needs doing. They crowd out real priorities with bits of tiny triviality. Notification spam has many up in arms, but the flood of distractions continues.