New to Big by David Kidder & Christina Wallace

Author:David Kidder & Christina Wallace [Kidder, David & Wallace, Christina]
Language: eng
Format: epub
Publisher: The Crown Publishing Group
Published: 2019-04-02T00:00:00+00:00

2. PAINKILLERS, NOT VITAMINS

Successful solutions solve a problem that is big, painful, and persistent: a repeated behavior or constant need that customers wrestle with on an ongoing basis. And the solution cannot be a vitamin, something that is nice to have and that you might even buy once, but that, on a day-to-day basis, probably sits unused at the back of a shelf. It must be a painkiller, something you ensure is always in stock and easily accessible because it solves your immediate need, effectively and consistently.

When the solutions we devise are painkillers for our customers’ ailments, we can build entire companies around those solutions. And if we make ourselves totally irreplaceable, even when those customers think about quitting us, they won’t. Even when they see shiny new solutions popping up, they won’t walk away.

And on the flip side, if the customer problem isn’t akin to chronic pain that needs soothing, we’ll struggle to create a strong case for a successful solution.

Painkillers, Not Vitamins in Action: In 2015, Fitbit reported sales of 4.5 million devices with revenues up 235 percent from 2014.2 But while the company was quick to tout device sales figures, they neglected to disclose that active daily users for the wristband were in decline. (“Success theater” in action! Focusing on impressive metrics instead of the most meaningful ones.) While many people were eager to buy a wearable device to track their health stats, about one-third of these owners ditched their device within six months. Additionally, there’s no strong research that proves Fitbit is a key factor in weight loss and health management.3 So, while Fitbit was a leader in sales of wearables, the device’s overall effectiveness was more along the lines of a vitamin than a painkiller. It was a nice to have, but if you forgot to put it on one day, it wouldn’t kill you.

In contrast, Nike recognized a recurring, deeply aggravating pain point for their customers and created a new business model around it. If you happen to be a parent, you’ve probably noticed that kids can wear a brand-new pair of shoes for approximately four days before growing out of them. Parents worldwide are in a constant state of shopping for shoes for their growing children (a singularly thankless task for many), and doing so feels like setting their money on fire. Enter Easy Kicks: Nike’s subscription service that gives kiddo customers access to new shoes whenever they want ’em for $20 per month. The program is a logistically new way to engage with customers that both creates a recurring revenue stream for Nike and turns a painful experience into a peak experience for parents and kids.4 People will never stop having kids, and kids will never stop growing out of their shoes, and parents will never stop resenting the endless buying cycle. All of which makes Easy Kicks an innovative and effective painkiller.

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