🎯 How to build a product no one can replace
How do you achieve that level of product-market fit?
Do you know what’s better than building a product that people love?
Building a product that people can’t live without.
That’s the holy grail of product development: creating something so valuable, unique, and sticky that your customers would never dream of switching to a competitor.
But how do you achieve that level of product-market fit?
Well, you could spend years experimenting, iterating, and pivoting until you find the perfect solution.
Or you could learn from someone who’s already done it.
Meet Dan Siroker, the co-founder and CEO of Optimizely, the world’s leading platform for experimentation and personalization.
Dan knows a thing or two about building products that no one can replace.
Before launching Optimizely, he was the director of analytics for the Obama 2008 presidential campaign, where he used data and testing to optimize the website and increase donations by 49%.
He also worked as a product manager at Google, where he helped launch Chrome, Google’s web browser that now dominates the market with over 60% share.
In a recent episode of EO, a YouTube channel that features interviews with successful entrepreneurs, Dan shared his insights on how to build a product no one can replace.
He revealed three key strategies that he used to grow Optimizely from a bootstrapped startup to a unicorn with over 1,000 employees and 9,000 customers.
Here they are:
1. Solve a real problem for a specific customer segment.
Dan said that the first step to building a product no one can replace is to identify a real problem that a specific customer segment has, and then solve it better than anyone else.
He gave the example of how Optimizely started as a tool for A/B testing landing pages, which was a pain point for marketers who wanted to improve their conversion rates.
He said that by focusing on a narrow use case and a specific audience, they were able to create a product that was easy to use, fast, and reliable, and that delivered clear value to their customers.
He also said that by solving a real problem, they were able to generate word-of-mouth and referrals, which helped them grow organically without spending much on marketing.
2. Build a moat around your product.
Dan said that the second step to building a product no one can replace is to build a moat around your product, which means creating a competitive advantage that makes it hard for others to copy or catch up with you.
He gave the example of how Optimizely built a moat around their product by investing in three areas: technology, network effects, and brand.
He said that by developing a proprietary technology stack that enabled them to run experiments faster, more accurately, and more securely than anyone else, they were able to create a superior user experience and a loyal customer base.
He also said that by leveraging network effects, they were able to create a virtuous cycle of growth and innovation, where more customers using their product generated more data, insights, and best practices, which in turn attracted more customers and partners.
He also said that by building a strong brand, they were able to establish themselves as the market leader and the trusted authority in their space, which helped them win more deals and charge premium prices.
3. Expand your product vision.
Dan said that the third step to building a product no one can replace is to expand your product vision, which means evolving your product to meet the changing needs and expectations of your customers and the market.
He gave the example of how Optimizely expanded its product vision from a tool for A/B testing landing pages to a platform for experimentation and personalization across the entire customer journey, from web and mobile to email and chat.
He said that by listening to their customers, observing the trends, and anticipating the future, they were able to create a product that not only solved their customers’ current problems but also enabled them to achieve their long-term goals and unlock new opportunities.
He also said that by expanding their product vision, they could increase their customer retention, loyalty, and lifetime value, attract new customers, and enter new markets.
You can watch the full EO episode here ⬇️ if you want to learn more from Dan.
YOUTUBE CORNER
Channels of the week:
