Crypto's Consumer Era: Creating Habit-Making Products for the Next 100M Users

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Jul 29, 2023
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Crypto's Consumer Era: Creating Habit-Making Products for the Next 100M Users
Introduction:
In the world of cryptocurrency, the concept of ownership has taken on a whole new meaning. With crypto, users can now be part of the growth and success of the products and communities they are involved in from day one. This opens up a world of opportunities for consumer protocols, DAOs, and applications to flourish. As we enter the next decade, we can expect to see the rise of bottoms-up brands, reinvented business models, and community ownership. The consumer category in crypto will bring forth new and exciting opportunities that we have yet to explore fully.
Curating with Financial Incentives and Social Status:
On the internet, we have become accustomed to curating content through likes, comments, and sharing. However, the curation space remains relatively untapped. Web3, the decentralized web, offers a unique opportunity to curate with clear financial incentives and social status. Social token design, for example, can create a system where users earn for curating content and share the benefits with both curators and creators. This not only enhances the user experience but also creates a more inclusive and rewarding ecosystem.
Creating Habit-Making Products:
For product-minded founders, creating products that keep users coming back is essential. Users crave connection, entertainment, and a sense of belonging. It's not just about the functionality and performance of a product; it's about how it makes users feel. Startups often fail because they neglect to consider the emotional experience of their users. Understanding the "Wow" moment, the emotional experience that makes someone say, "Wow," and share it with others, is crucial. By engineering and planning for this moment, founders can create products that leave a lasting impression.
Actionable Advice:
- 1. Focus on how your product makes people feel: Instead of solely focusing on what users want or need, obsess over how they feel when using your product. Consider the emotions your product evokes and build features that indulge in playful exploration, provide moments of pleasant surprise, and create a sense of control and flow.
- 2. Underpromise and overdeliver: Craft a compelling story behind your product, but be careful not to overhype it. Instead, aim to exceed user expectations and provide them with a new superpower that solves their pain points and adds value to their lives.
- 3. Design for ease of use and habit formation: People have limited attention and time, so design your product with simplicity in mind. Make the key behaviors and habits as easy as possible for users to adopt. Implement the hook model as a diagnostic tool to identify deficiencies and optimize user behavior.
The Monopoly of the Mind:
Forming a habit in a consumer's mind creates a competitive moat that is difficult for competitors to penetrate. When a habit is established, users don't even consider whether the competition is offering a better product. Engagement cannot be bought; it must be designed into the product itself. Providing real lasting value and ensuring that the behavior occurs with sufficient frequency are key factors in forming habits.
Understanding Human Psychology:
To create successful products, founders must be great students of humanity and psychologists. Understanding how people think and feel is crucial in crafting products that resonate with users. For example, Snapchat's early success can be attributed to its deletion-by-default feature, which changed the way users perceived human connections. By applying insights about human psychology to technology, founders can create products that truly connect with users on an emotional level.
Actionable Advice:
- 1. Own a new habit formation: Look for trends that, if capitalized on, can establish a new habit or behavior. Find habits that users want to do often and incorporate them into your product.
- 2. Focus on deep meaningful connections: Traction is not solely about big numbers; it's about creating a deep connection with a small group of users who swear by your product. Expand that connection to a larger audience by providing more value.
- 3. Emphasize effort and time: Incorporate humanity and the time users invest into your product. Help users feel successful and wire in the habit by simplifying the user experience and providing the simplest, most satisfying way to accomplish tasks.
Conclusion:
As the crypto consumer era takes off, founders have the unique opportunity to create habit-making products for the next 100 million users. By understanding human psychology, designing for emotional experiences, and focusing on deep connections, founders can build products that keep users coming back. Additionally, leveraging the power of web3 and social token design can enhance user engagement and create a more inclusive ecosystem. The future of consumer crypto is bright, and it is up to founders to seize the opportunities that lie ahead.
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