In the United States alone, 30,000 new consumer products are launched every year and 80% fail within the first year and 90% within the first 5 years.
Although I do not know that statistic locally, in my experience of being involved in approx 30 product roll-outs in the last 3 years the statistic is probably quite similar.
So why is it that major companies like Netflix, Apple, Amazon etc consistently roll-out new products and features that their consumers fall in love with while everyone is scratching their head on how to do the same?
Firstly, even these great companies have gone through major product pains too with Amazon for example spending over a billion on failed products in their R&D department in the last 20 years but they have ended up with a model which is now being used by leading product designers globally. This is a simple method that brings huge results and a strong starting point of giving consumers what they really want.
Before diving into that, let’s review how the majority of companies design their products and why this is flawed.
80% OF NEW CONSUMER PRODUCTS LAUNCHED EVERY DAY FAIL WITHIN THE FIRST YEAR AND 90% WITHIN THE FIRST 5 YEARS.
How 99% companies design products
Most founders locally found a company for one of the following reasons:
1. There is a company abroad who has successfully created it abroad.
2. They would use it themselves.
Although the above are actually valid points to partly form an argument on why a product would work, it does not serve a complete basis.
The issue is simple on why the above is a shaky ground to start a company, which is that in both scenarios you are looking at companies abroad or yourself and your starting point always has to be the customer.
Pretty obvious right? But most companies don’t do that and will always be the case for the majority as it’s within human nature to look at others and think about yourself.
Below will explain what it means to begin with your customers and how it is broken down.
How the top 1% build products
To make this methodology clear throughout, we will use https://tabib.mt/ as an example of how to create a product out of a desired customer experience.
When looking to create a new product, it is actually quite deep into the process that you design what you’re actually building. The initial phase needs to be a deep dive into what the customers are currently doing and how satisfied are they with their current habit.
With the case of https://tabib.mt/, a study was carried out on how patients and doctors were functioning due to restrictions with Covid-19 and if there were pain-points with their current processes.
ANCHOVY. Undertook the following steps to understand what was happening with doctors and patients during lockdown:
- Ran two surveys asking questions only on their current actions to doctors and patients.
We met with doctors and patients and drew out their current user flows to make appointments and get help.
We looked at companies abroad who offered similar solutions to this problem.
We developed a minimum viable product that solves the core problem.
We ran user testing with doctors and patients to reduce friction in our platform.
Minor roll-out campaign was launched to get first users onboard and gauge the need
For the purpose of the article our findings will be reduced on the above, but the main findings were that doctors were losing money as they were booking appointments via sms messaging and were giving advice that they would charge for in person, for free over the phone.
Users were frustrated as finding a doctor for an appointment was chaos as there was no infrastructure in place that handled any part of the process.
It was clear when drawing out the user flows between them that technology would significantly increase efficiency and that companies abroad have solved similar problems.
When we build the MVP and showed it to doctors and patients, they gave feedback and confirmed interest in the product.
Within 1 week of roll-out, 10 doctors are on the platform and receiving regular bookings on it.
To illustrate why this worked, below is an illustration on why the above methodology works.
How do you know your customers think that your product is great:
The success of product is defined at two stages predominantly, these are:
- Scoping product strategy (As illustrated above).
- Learning from user feedback.
The beauty of digital products is that from how users see an ad from your company to how they perform on your website is tracked with data. The headache with this is turning that data into information.
To help you with this, we will first start with what do you need to be looking out for and the main two metrics are:
The above frameworks are a result of grueling pain of building product after product, and we hope that this will save you some of your learning curve in your new venture.
Looking to get help from experts with your next product launch?
Get in touch
Andrew Borg Costanzi
Head of Growth
Fact: I take an ice cold shower every day