"The Power of Delighting Customers and Creating Hard-to-Copy Advantages"

"The Power of Delighting Customers and Creating Hard-to-Copy Advantages"

In today's digital age, social media platforms have become an integral part of our daily lives. One such platform that emerged at the end of the Heisei era in Japan was mixi. Looking back, mixi was hailed as the social media platform that Japan gave birth to. What made mixi unique was the fact that you were already approved simply by being yourself, and the platform thrived on the content created by its users. During that time, mixi was still an invitation-only platform, allowing for a more exclusive community.

The ability to curate and filter readers was a feature that would soon be highly valued in the online world. As people started to move away from mixi and towards other platforms like Twitter, one of the reasons was the perceived hassle of maintaining a diary. However, mixi's community feature was truly remarkable. It provided a space where like-minded individuals could come together and share their thoughts and interests. Perhaps mixi's community feature was the ideal online salon that everyone was searching for.

While platforms like Facebook have features like Waves, where communication is designed with the assumption of looking back, mixi's "footprints" feature had a more inviting and less intimidating feel to it. It created a staircase-like structure for communication, which is a characteristic that is uniquely Japanese. Even though most people might consider mundane information to be unimportant, having a space where you can freely express yourself without worrying about judgment is essential. At the same time, we also need a space where we can enjoy this freedom.

In a world where everyone is trying to become someone, it is important to consider the place we can call home. Could it be that mixi is the platform where people find solace and a sense of belonging?

Now, let's shift gears and explore the concept of the DHM Model. When joining a company as a product leader, advisor, or board member, it is crucial to brainstorm ideas that answer three key questions: How will the product delight customers? What will make the product hard to copy? What are the business model experiments required to build a profitable business?

To delight customers, it is essential to identify the "delighters" for your product. Hamilton Helmer's book, "7 Powers," outlines seven hard-to-copy advantages that can help differentiate your product from competitors. These advantages include brand recognition, network effects, economies of scale, counter-positioning, unique technology, switching costs, and process power. Each of these powers offers a unique value proposition that is difficult for competitors to replicate.

For example, Netflix has successfully leveraged several of these powers to dominate the streaming industry. Their brand recognition, network effects, and switching costs have played a significant role in their success. Almost all devices are pre-wired to stream Netflix, making it the go-to platform for streaming content. Additionally, the absence of late fees and their investment in original content have also contributed to their hard-to-copy advantage.

In order to generate margin and build a profitable business, it is crucial to experiment with different prices and business models. This requires continuous evaluation and adaptation as the product evolves over time. It is important to recognize that this process is never truly finished, and there will always be room for improvement and exploration.

To apply these principles to your own product, here are three actionable pieces of advice:

1. Take a moment to identify how your product currently delights customers and brainstorm ideas on how you can further enhance their experience in the future. Continuously strive to exceed customer expectations and surprise them with new features or improvements.

2. Utilize the eight hard-to-copy powers mentioned earlier as a springboard to brainstorm ways your product can create a unique advantage that competitors will find difficult to replicate. Consider how you can leverage your brand, technology, or network effects to stand out in the market.

3. Develop a list of price and business model experiments that you can explore over the next 1-3 years. This will allow you to adapt to market trends, customer preferences, and changing economic conditions. Be open to testing different pricing strategies and business models to find the optimal approach for your product.

In conclusion, the combination of delighting customers and creating hard-to-copy advantages is a powerful strategy for success in the digital age. Platforms like mixi, with its inclusive community and unique communication structure, have demonstrated the importance of providing spaces where people can express themselves freely. Meanwhile, the DHM Model provides a framework for product leaders to analyze their offerings and develop strategies that will set them apart from the competition. By continuously seeking ways to delight customers, creating unique advantages, and experimenting with pricing and business models, companies can build profitable businesses that thrive in an ever-evolving market.