"When Efficiency Is The Enemy: How Great Companies Create Engaging Customer Experiences in the Age of Information Abundance"


Hatched by Glasp

Aug 31, 2023

4 min read


"When Efficiency Is The Enemy: How Great Companies Create Engaging Customer Experiences in the Age of Information Abundance"


In today's fast-paced world, companies are constantly striving to improve efficiency in order to meet customer demands and stay ahead of the competition. However, what many fail to realize is that efficiency alone does not guarantee an engaging customer experience. This article explores how great companies like Starbucks and Costco have understood the importance of going beyond efficiency to create memorable and captivating customer experiences. Additionally, it delves into the implications of information abundance and the role of LLMs (Language Model Models) in shaping the future of information consumption and aggregation.

The Importance of Customer Experience Design:

Starbucks, a renowned coffee chain, recognized that their new automated espresso machines, although efficient, were compromising the customer experience by hindering baristas from maintaining eye contact with customers. The company's CEO, Howard Schultz, took a bold step by instructing the replacement of every espresso machine in their stores worldwide, acknowledging that a more efficient experience doesn't necessarily equate to the best customer experience. This decision aimed to restore the "romance and theater" that customers expect from Starbucks.

Similarly, Costco, a membership-based warehouse club, prioritizes the element of discovery and surprise in their customer experience. The thrill of navigating through aisles and stumbling upon unexpected bargains is an integral part of the Costco brand experience. Despite not being the epitome of consumer efficiency, this unique approach cultivates intense customer loyalty.

Understanding Customer Value Proposition:

To achieve a higher level of success, companies must go beyond streamlined processes and operational excellence. They need to understand the real value that customers derive from their products and services, both rationally and emotionally. By aligning the customer experience with this value proposition, companies can create a lasting impact and foster customer loyalty.

Information Abundance and the Role of LLMs:

In the age of information abundance, where attention is the scarcest resource, the need for efficient information consumption and aggregation becomes crucial. LLMs, such as language models, have the potential to amplify this abundance. However, it is essential to recognize that LLMs cannot be a sustainable moat, as vendors continue to commoditize these models.

The Role of Aggregation and Security in the Web's Future:

Aggregation becomes increasingly important as information abundance grows. However, the reliance on centralized servers and the castle wall security model of the web may be challenged. The concept of signing everything cryptographically, similar to signing a transaction in a web3 wallet, may disrupt the web's security model. User-owned keys and self-sovereign data enable permissionless innovation and reduce the chokepoints that lock users into specific platforms.

Commoditization of LLMs:

LLMs, being complements to many consumer products, are susceptible to commoditization. Open-source models have a competitive advantage as they enable permissionless innovation and foster variety in the cybernetic sense. Pressure to commoditize LLMs is expected due to their complementary nature and the desire of smart companies to commoditize their compliments.

Three Actionable Advice:

  • 1. Prioritize Emotional Connection: Efficiency is important, but do not overlook the emotional connection customers seek. Understand the value proposition that resonates with customers on both rational and emotional levels, and infuse the customer experience with cues that align with this proposition.
  • 2. Embrace Permissionless Innovation: In the realm of information abundance, consider adopting a permissionless innovation approach. Encourage open-source models and user-owned keys to foster variety and competition, driving faster emergence and potential collapse of aggregators.
  • 3. Prepare for Commoditization: If your business relies on LLMs or similar technologies, anticipate the potential commoditization of these models. Explore ways to differentiate and innovate beyond the basic models to maintain a competitive edge.


Efficiency alone does not guarantee an engaging customer experience. Great companies understand the need to go beyond operational excellence and streamline processes to create memorable experiences. Additionally, the era of information abundance and the rise of LLMs present new challenges and opportunities for information consumption and aggregation. By prioritizing emotional connection, embracing permissionless innovation, and preparing for commoditization, businesses can navigate these complexities and create captivating customer experiences in a rapidly evolving world.

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