Podcast Summary
Understanding the why behind customer words: Listen beyond surface level for underlying motivations and pain points to build solutions that truly meet customer needs.
While it's important to listen to what customers say, it's equally important to understand the intent behind their words and identify the struggling moments that drive their desire for change. Bob Mesta, the founder and CEO of The Rewired Group, has spent the last 30 years studying what causes people to change, from consumer products to complex systems like the Patriot missiles guidance system. He emphasizes that believing what customers say at face value may not always lead to a deep understanding of their true needs. Instead, it's crucial to actively listen for what's not being said, to identify the underlying motivations and pain points that drive their desire for a new solution. Mesta's framework, honed through his experience and research, emphasizes the importance of empathy and understanding in building successful products and companies. By truly connecting with customers and their struggles, founders can create solutions that not only meet but exceed their expectations.
Understanding deeper motivations: Ask about desired outcomes and deeper motivations instead of specific features or outputs to create effective solutions.
People may not always be able to articulate what they truly want or need, as they are often problem-aware rather than solution-aware. Instead of asking about specific features or outputs, it's important to ask about the desired outcomes and the underlying motivations. For instance, someone might not want to lose weight just for the sake of losing weight, but rather because they want to be able to ski with their children or spend quality time with them. By understanding the deeper purpose, it becomes possible to create solutions that truly meet the customer's needs. Additionally, drawing inspiration from the book "Supercommunicators" by Charles Duhigg, it's essential to ask follow-up questions to help customers open up and reveal more about their motivations and desires. By focusing on the outcomes and the underlying reasons, it's possible to create stronger connections and build more effective solutions.
Valuing Time: Personal Experiences and Priorities: Reflect on priorities, eliminate unappreciative clients, make time for joy, use technology to streamline, prioritize deep discussions and research, and make intentional choices about time.
Time is our most valuable currency, and it's essential to prioritize it wisely. The speaker shares a personal experience of losing a loved one at a young age and realizing the importance of valuing one's time. He advocates for eliminating unappreciative clients and making time for activities that bring joy and fulfillment. The use of technology, such as AI tools, can help streamline processes and create opportunities for more meaningful experiences. The speaker also emphasizes the importance of deep, qualitative discussions and research to build effective hypotheses and solutions. Ultimately, it's essential to reflect on our priorities and make intentional choices about how we spend our time.
Understanding the deeper reasons behind people's goals: Effective companies listen deeply to customers' context and reasons for wanting to lose weight to create tailored solutions
The success of a product is not just about the product itself, but also the context in which it is used and the outcomes people want to achieve. This was discussed in relation to weight loss and the use of glucose monitors. People may give superficial reasons for wanting to lose weight, but the real reasons and the energy required to make a change are often deeper. The context of a situation can add or detract from the value of a product. The speaker shared how his mentors, including Deming, Christensen, Taguchi, and Willie Moore, had a significant impact on his life and turned him into an innovation machine. If a company like Nutrisense or Ozempic had truly understood the context and deeper reasons behind people's weight loss goals through deep listening, they could make more effective choices about how to serve those customers based on the different vectors of direction in which people buy.
Understanding motivations and situations for marketing and hiring success: Tailor marketing efforts to audience motivations, use diverse hiring platforms, stay attuned to moments of change, and accurately assess market size based on specific struggles and motivations.
Understanding your audience's motivations and situations is crucial for effective marketing and hiring. In the case of Nutrisense, different demographics have varying reasons for using the product, and tailoring marketing efforts to these motivations can lead to greater success. Similarly, when hiring for a small business, using a platform like LinkedIn can help reach a larger, more diverse pool of candidates, increasing the chances of finding the best fit. However, it's important to remember that people's behaviors and needs can change, so focusing on the moments that trigger these changes can be more effective than relying on static personas. Additionally, the total addressable market can often be overestimated, and it's essential to consider the specific struggles and motivations of potential customers to accurately assess the market size. Overall, being attuned to who, when, where, and why can lead to more successful marketing and hiring strategies.
Understanding emotional drivers in decision making: Identify emotional drivers and offer multiple choices for informed decisions, recognizing no solution is perfect. Overlooked proposals highlight the importance of providing options.
Effective decision making involves understanding the emotional aspects behind people's choices, as irrational decisions often stem from a lack of context or incomplete information. Airbnb's success lies in providing not just a place to sleep, but a place to hang and interact, catering to the emotional need for shared spaces. When making decisions, it's crucial to identify the struggling moments and emotional drivers, and offer multiple choices to help people make informed decisions with confidence. By understanding the forces at play, we can better frame and make trade-offs, recognizing that no solution is ever perfect. Additionally, a staggering 60% of proposals go unanswered due to the lack of choice, emphasizing the importance of offering multiple options.
Understanding customer stories to identify valuable variables: Explore customer stories to determine context-specific factors that make a product valuable, and use these insights to enhance the customer experience.
Making decisions in real life is not always a rational process of elimination like we learn in textbooks or multiple choice tests. Instead, context plays a significant role in shaping people's rationales. During customer interviews, instead of coming in with a script or preconceived notions, it's essential to have a conversation to extract their story. Bob's approach involves understanding what people changed from and to, when they made the switch, and the circumstances that led them to become aware of the problem and ultimately decide on a solution. By looking backwards, we can identify the variables that make a product more valuable for customers in specific situations and help them add the missing ingredients to enable them to move forward. In the end, providing a VIP customer experience is crucial for businesses, and tools like Zendesk can help startups build deep relationships with their customers and offer amazing support experiences.
Navigating buyer anxiety in markets with large considered purchases: Addressing specific pain points and providing solutions can reduce anxiety and increase customer satisfaction, especially in markets with large considered purchases where buyers don't have control over the final decision.
Understanding the unique dynamics of a market and addressing the specific pain points of customers can significantly reduce anxiety and increase customer satisfaction, especially in situations where the buyer is not directly involved in the purchasing decision. The diamond market serves as a prime example, where the fear of making a wrong choice due to the large considered purchase and the engagement surprise creates anxiety for buyers. Companies like Blue Nile and Stone Algo have navigated this by offering return policies, allowing buyers to reduce the fear of making a wrong choice and making the purchasing process less anxiety-producing. This concept can be applied to various markets and industries, including B2B, where buyers don't get to choose the product or service they receive. By addressing the pain points and providing solutions, companies can build trust and increase customer satisfaction. Additionally, the discovery of the desire for a certain type of diamond purchasing experience, where people want to get a diamond but don't, presents an opportunity for businesses to capitalize on this unmet need.
Educating customers builds trust: Educating customers about products or services increases trust, leading to higher sales. Authenticity, responsiveness, and following through on promises also contribute to trust-building.
Building trust with customers is crucial for business success. Trust is not random; it's caused by specific actions. One way to build trust is through education. When people are educated about a product or service, they become more trusting of the provider. De Beers diamonds used this strategy to increase sales by 10x by focusing on cut, clarity, and color. Authenticity and responsiveness are also important trust-building factors. Companies should aim for authentic responsiveness, not overly quick or automated responses. Following through on promises is also key to building trust. For marketers, making people problem-aware is essential, and the message must come at the right time and context. For example, Casper identified that people who have sleep problems are more likely to buy mattresses at unusual hours, and they targeted this group effectively. Ultimately, understanding the customer's perspective and addressing their pain points is the foundation of building trust and driving sales.
Identifying consumer needs at different stages: Businesses can cater to consumer needs effectively by understanding their behaviors and offering products or services that function as satiation devices or gradual transitions.
Understanding consumer behavior and needs at different stages can help businesses offer products or services that cater to those specific needs effectively. Using the example of Snickers, the brand identified a gap between meals when people are hungry and need an energy boost. Instead of just offering a candy bar, they created a product that functions as a satiation device, providing a more substantial pick-me-up than competitors like Red Bull or coffee. When it comes to buying a new car, people's decisions are influenced by their experiences, brand loyalty, and readiness to adopt new technologies. Instead of trying to convince laggards to make a significant leap to fully electric cars, businesses can offer hybrid options that cater to their needs and help them transition gradually. By focusing on the half-step, businesses can make the adoption process more accessible and appealing to a larger audience.
Desensitizing to EV charging through anomaly experiences: Renting an EV or trying it out as a passenger can help break the habit of checking fuel gauges and planning gas stops, leading to time savings and reduced stress when transitioning to an EV
Overcoming the fear and anxiety of transitioning to electric vehicles (EVs) like Tesla, requires desensitization to the unfamiliar experiences and routines associated with charging at supercharging stations instead of refueling at gas stations. This can be achieved through anomaly experiences, such as renting an EV for vacation or trying out an EV as a passenger in a ride-hailing service. By recognizing the inconvenience, danger, and time-consuming nature of gas stations, and the simplicity and convenience of charging at home or supercharging stations, individuals can break free from the ingrained habit of checking fuel gauges and planning gas stops. This shift in perspective can lead to significant time savings and reduced stress, making the switch to an EV a more appealing and enjoyable experience.
Nostalgia and personal experiences: Nostalgia influences our attachment to personal experiences and possessions, Ford's electric Mustang evokes mixed feelings, starting each day with a full tank of energy, understanding the difference between nostalgia and overly different experiences, Ford's company split, and younger generations' appreciation for older cars
Our connection to the past and nostalgia plays a significant role in our lives, especially when it comes to personal experiences and possessions. This was evident in the discussion about the speaker's fond memories of his first car, a Ford Mustang, and his thoughts on Ford's decision to produce an electric version of the classic pony car. The speaker also touched upon the concept of starting each day with a full tank of energy, drawing an analogy to a gas tank, and the importance of understanding the difference between nostalgia and overly different experiences. Furthermore, the conversation highlighted Ford's recent company split into different divisions, with the gas and electric groups requiring different investments, and the trend among younger generations to buy and appreciate older cars as a means of expressing their unique identities.
Exploring the Influences of Innovators and Entrepreneurs: Exploring the influences and mentors behind innovators and entrepreneurs can provide valuable insights into their approach and mindset. Empathy and understanding different perspectives are crucial skills for success.
Understanding the influences and mentors behind innovators and entrepreneurs can provide valuable insights into their approach and mindset. The speaker shares his personal experience of discovering the impact of Bob Dylan, Mark Knopfler, and Tom Petty on his musical tastes, which led him to explore their connections and influences on each other. This exploration inspired him to reflect on the lessons he learned from his own mentors, including Dr. W. Edwards Deming, Dr. Shigeo Shingo, and Dr. Willie Hobbs Moore, who taught him the importance of robust design of experiments, empathetic perspective, and navigating corporate politics. The ability to see things from multiple perspectives is a crucial skill for innovators and entrepreneurs, enabling them to build successful products and navigate complex situations. Empathy and understanding the perspectives of different stakeholders can help bridge divides and build stronger teams and organizations.
Focus on uncovering the unknowns instead of proving what you know: Elon Musk's approach to quick decisions and constant questioning can lead to efficiency and progress. Trust and respect in relationships and meaningful work are essential for job satisfaction.
People often spend too much time trying to prove what they already know instead of focusing on uncovering the unknowns. This approach can lead to wasted time and effort. Elon Musk, as an example, is known for making quick decisions and being open to reversing them if necessary. The key is to understand that making mistakes is a part of the process and to approach work with a "zero-based budgeting" mindset, constantly questioning why things are done a certain way and whether they are still necessary. Additionally, people often leave companies due to a lack of trust or respect for their managers, and these feelings can also apply to personal relationships. If you find yourself in a situation where you don't respect or trust those you work with, or if the work you're doing has little impact, it may be time to consider a change.
Creating a Transparent Work Environment: Managers should trust employees, set clear expectations, recognize milestones, and address personal motivations for better performance and employee retention. The SODEOD practice can help create transparency and accountability.
Effective management involves creating a transparent work environment where employees are encouraged to share their goals and progress, while also providing opportunities for growth and development. Micromanagement and negative feedback can lead to disengagement and turnover. Instead, managers should trust their employees, set clear expectations, and recognize milestones to keep them motivated and engaged in their work. Additionally, employees may leave a job due to personal reasons, such as a desire for more work-life balance or a need for greater status or recognition. By understanding these motivations and addressing them, managers can build a team that is committed to the company's success. The SODEOD (Start of Day, End of Day) practice, where employees share their daily goals and progress, can help create transparency and accountability, leading to better performance and employee retention.
Reasons for job switching: People switch jobs due to dissatisfaction with management, desire for growth, financial reasons, and external influences. It's important to identify the root causes and seek out a supportive work environment.
Job switching is a complex process influenced by various factors. According to the discussion, there are four main clusters that push people to switch jobs: dissatisfaction with current management, desire for growth and learning opportunities, financial reasons, and external influences. It's essential to understand that these factors often overlap and can change over time. For instance, someone who initially enjoys a new job might grow discontent with it as they stagnate in their role. Conversely, getting fired from a job can be a turning point, leading to new opportunities and personal growth. Ultimately, the key is to identify the root causes of job dissatisfaction and seek out a supportive environment where one can learn, grow, and thrive.
The future of work: flexible schedules, remote work, AI, and shared ownership: The future of work involves flexible schedules, remote work, increased use of AI, and shared ownership through equity or performance-based compensation, leading to better alignment, improved communication, and successful businesses
The future of work is shifting towards more flexible schedules and remote work, as well as an increased focus on alignment and communication within teams. This is particularly relevant for growing companies that are looking to scale and ensure everyone is on the same page. The use of AI is also expected to significantly impact the way we work, leading to more efficient processes and potentially fewer workdays. The importance of creating a common language and understanding within teams cannot be overstated, as it leads to better alignment, improved communication, and ultimately, more successful businesses. Additionally, the concept of shared ownership through equity or performance-based compensation is becoming increasingly popular, particularly among small companies. This not only creates alignment but also fosters a sense of ownership and commitment among team members.
Connecting and supporting entrepreneurs: Founder Fridays can help entrepreneurs connect, share experiences, and learn from each other, fostering a sense of community and collaboration.
The lack of a clear national direction and the shift in priorities among younger generations, who may not prioritize homeownership, can contribute to feelings of instability and uncertainty in society. The discussion highlighted the importance of community and collaboration among entrepreneurs, emphasizing the value of sharing experiences and learning from one another. The creation of "Founder Fridays" was proposed as a solution to help founders connect and support each other, providing a platform for them to discuss their challenges and learn from each other. The conversation also touched upon the role of ambition and long-term planning in shaping the future, and the importance of leaders providing a clear vision for the nation.
Join Founder Fridays for Startup Networking: Sign up for Founder Fridays in your city to connect with local and global startup communities
Founder Fridays is an exclusive community for startups and entrepreneurs, and anyone interested is encouraged to join, regardless of their location. The events are happening in over 71 cities around the world, with plans to expand to 100 cities and surpass 1,000 members. To join, simply visit founderfridays.tech and sign up. Don't forget to take pictures and share them on Twitter, mentioning @TWIstartups and @Jason. Whether you're in San Francisco, New York, Chicago, LA, Paris, Tokyo, Dubai, or any other city, you're welcome to attend. So, if you're an entrepreneur or interested in startups, sign up and get ready to connect with like-minded individuals in your community and beyond.
