The Intersection of User Happiness and Crafting the First Mile of Product

The Intersection of User Happiness and Crafting the First Mile of Product

Introduction:

In the world of marketplaces, success is not solely determined by the size or scale of the platform. Instead, it hinges on the ability to make buyers and sellers genuinely happy. The marketplace that creates the most meaningful user experiences and surpasses any substitute will come out on top. This article explores the hierarchy of marketplaces, the importance of user happiness as a moat, and the significance of crafting the first mile of product to engage new users.

The Hierarchy of Marketplaces:

When evaluating the success of a marketplace, Gross Merchandise Value (GMV) is often considered a vanity metric. It fails to capture the enduring value created or the level of happiness experienced by users. Instead, the focus should be on making buyers and sellers happier than any alternative. Regardless of the size of an incumbent marketplace, it is always susceptible to a new entrant that can provide a superior user experience. Thus, happiness, not scale, becomes the true moat for marketplaces.

User's Happiness as a Moat:

By shifting the perspective of growth to increasing the average level of happiness per transaction, marketplaces can prioritize quality growth over vanity metrics. Pursuing happiness becomes the pathway to achieving sustainable growth. Choosing a smaller market may seem risky, but it can lead to identifying a niche market where the marketplace can excel. The most successful marketplace founders are skilled at selecting the right opportunities and sequencing their growth strategies accordingly.

Crafting the First Mile of Product:

The first 15 seconds of a user's experience are critical. Visitors to a marketplace are lazy, vain, and selfish. They have limited time, want to look good quickly, and seek immediate benefits. To engage new users effectively, marketplaces must provide immediate novelty or utility that precedes the larger promised benefits. Explaining the product in detail is ineffective; instead, using familiar terms and avoiding unnecessary complexity is key.

The first mile of a user's experience is the top of the funnel for new users and requires meticulous planning. Allocating at least 30% of a marketplace's energy to crafting the first mile is crucial for aggressive growth aspirations. While maintaining a positive user experience for existing users is important, neglecting the acquisition of new users can hinder growth potential. Established marketplaces often overlook the simplicity and engagement needed to attract new users, creating an opportunity for startups to disrupt the market.

Actionable Advice:

1. Prioritize user happiness: Focus on creating a marketplace that exceeds user expectations and makes them genuinely happy. By providing a superior user experience, you can build a strong moat against competitors.

2. Craft the first mile of product: Invest significant effort into the initial user experience, ensuring that it is seamless, intuitive, and offers immediate benefits. Simplify the onboarding process to engage new users effectively.

3. Don't overlook new user acquisition: While it's important to cater to the needs of existing users, the acquisition of new users should never be neglected. Continuously refine and optimize the first mile of your product to attract a broader user base.

Conclusion:

In the competitive landscape of marketplaces, the key to success lies in prioritizing user happiness and crafting the first mile of product. By focusing on providing superior user experiences and engaging new users effectively, marketplaces can establish a strong position in the market. Remember, it's not just about the size or scale of the platform; it's about making users genuinely happy and creating enduring value.