Crafting The First Mile Of Product: From 0 to $70B ARR

Crafting The First Mile Of Product: From 0 to $70B ARR

In the fast-paced world of product development, the first 15 seconds are crucial. During this short window of time, your visitors are lazy, vain, and selfish. They don't have the time or patience to invest in something they don't know, they want to look good quickly using your product, and they want to know what immediate benefits they'll receive. Understanding these characteristics of your users is key to crafting the first mile of your product.

When it comes to social products, there's a unique phenomenon that occurs. After you've posted something for others to see, you feel an irresistible urge to jump back into the product. Why? Because your ego is on the line. This insight reveals the power of immediate novelty or utility in engaging users. Before they can fully grasp the larger promised benefits, they need something that will immediately benefit them.

Explaining your product is the least effective way to engage new users. People don't want to make choices, especially in the first mile. Life and new products are already hard enough. Instead, use familiar terms and concepts that users can easily understand. Opt for solutions that are effective rather than creative. The first mile of a user's experience should be the most thought-out part of your product, not an afterthought.

For products with aggressive growth aspirations, it's crucial to allocate at least 30% of your energy to the first mile. Even if your user experience for existing users is performing well, don't forget that new types of users are the real source of growth. Neglecting new users in favor of power users can hinder your growth potential. Many established products take their large user bases for granted and fail to maintain simplicity over time.

Now, let's shift gears and dive into the growth journey of AWS (Amazon Web Services). AWS started as an internal project to improve development processes within Amazon. The company created a distributed computing manifesto and implemented APIs to drive a smoother development environment. Recognizing the success of these internal improvements, Amazon decided to become a "services company" with a set of well-documented APIs.

AWS's first feature targeted affiliate marketers and allowed them to query extensive data about Amazon's product catalog. While this feature kickstarted AWS, it wasn't the one that would ultimately drive its growth. The key to AWS's success was understanding that customers are always dissatisfied and want more. By working backwards from customer needs, AWS developed a process that involved drafting a press release, creating an FAQ document, and visualizing the customer experience.

The team at AWS identified their core competencies in infrastructure as a service and began calling it an "operating system for the internet." They launched a blog to expand on their product vision and released beta services to achieve their goal of creating a web OS. Gradually, they transitioned from beta to full-fledged products, offering low-cost services on a usage basis to cater to startups and Fortune 500 companies alike.

AWS's success can be attributed to its customer obsession. They focused on building for their ideal customer profile, the 2 or 3 player in any space. They listened to customer feedback and read between the lines to invent on their behalf. Instead of worrying about the competition, they remained committed to delivering value to their customers.

One of AWS's unique strategies was not deprecating older products but offering them to customers at a lower cost. This helped control costs and predict hardware needs. AWS continued releasing new products that generated increasing demand for their infrastructure, creating a virtuous cycle of growth.

In recent years, AWS has expanded its sales teams and hired former government officials with IT software procurement experience. This has given them an advantage in procurement processes and helped them respond effectively to customer needs.

Based on these insights, here are three actionable pieces of advice for crafting the first mile of your product:

1. Focus on immediate novelty or utility: Provide users with something that will immediately benefit them and capture their attention. Avoid the need for explanations and choices in the first mile.

2. Use familiar terms and concepts: Make it easy for users to understand and navigate your product. Opt for solutions that are effective rather than overly creative.

3. Allocate sufficient energy to the first mile: Even if your existing user experience is performing well, don't neglect new users. They are the key to growth. Continuously maintain simplicity and prioritize the first mile of your product.

In conclusion, the first mile of a user's experience is crucial for engaging new users and driving growth. By understanding their laziness, vanity, and selfishness, you can craft a product that immediately benefits them and captures their attention. AWS's journey showcases the power of working backwards from customer needs and being obsessed with delivering value. Incorporate these insights into your product development process to create a successful and user-centric product.