The Power of Being the First Choice: Lessons from Ron Conway and Ikeda Noriyuki

The Power of Being the First Choice: Lessons from Ron Conway and Ikeda Noriyuki

In the fast-paced world of entrepreneurship, some things remain constant: determination, conviction, leadership, drive, and fearlessness. These qualities are what set successful entrepreneurs apart from the rest, and this sentiment was echoed by Ron Conway during his speech at Startup School in 2012.

Conway emphasized the importance of focusing on growth, shipping products, and continuous improvement. He believed that a good product leads to happy users, which in turn leads to a great company. Conway, as a founding partner of SV Angel, stressed that his investment firm prioritizes investing in entrepreneurs first and foremost. This approach aligns with the belief that happy users and word-of-mouth can elevate a company to the ranks of Google, Facebook, and Twitter, without relying on traditional advertising methods.

In a similar vein, Ikeda Noriyuki, in his article titled "The Brand that Comes to Mind First Will Survive," discusses the concept of the "Evoked Set." The Evoked Set refers to the collection of favorable options that come to mind when considering a purchase. In today's world, where physical product differentiations have become increasingly challenging, the ability to be the first brand that comes to mind plays a crucial role in determining whether a consumer chooses a particular product or service.

Noriyuki argues that being the brand that comes to mind first holds significant power. This concept aligns with Miller's research from 1956, which suggests that humans can accurately rank a maximum of 5 to 9 stimuli in a given product category. Therefore, being in the Evoked Set and securing the first-choice position greatly influences the consumer's decision-making process.

Furthermore, Noriyuki introduces the "Double Jeopardy" law, which states that brands with high market share tend to have higher customer numbers, as well as higher levels of behavioral and attitudinal loyalty. This law emphasizes the importance of being the market leader and adopting strategies that minimize the number of brands in the Evoked Set. Companies like Kewpie, which focus on reducing the competition in the Evoked Set, and those that consistently invest in substantial advertising campaigns to maintain their first-choice position, have been successful in implementing effective strategies.

Additionally, Noriyuki highlights the concept of Zero Moment of Truth (ZMOT). According to ZMOT, consumers tend to make a significant portion of their purchase decisions before setting foot in a store. This means that the battle for placement in the consumer's Evoked Set and securing the first-choice position is often won or lost before they even enter the physical retail space.

From these insights, we can draw three actionable pieces of advice for entrepreneurs and marketers:

1. Focus on product excellence: Building a good product that satisfies users and generates positive word-of-mouth is crucial. By prioritizing continuous improvement and delivering products that meet customer needs, entrepreneurs can increase their chances of being the first choice in the Evoked Set.

2. Invest in branding and marketing: To secure the first-choice position, it is essential to invest in branding and marketing efforts. By consistently promoting the brand and creating memorable experiences, entrepreneurs can increase their brand's visibility and stay at the forefront of consumers' minds.

3. Understand consumer decision-making processes: Recognizing the significance of the Evoked Set and the importance of being the first choice requires a deep understanding of consumer decision-making processes. Conducting market research, analyzing consumer behavior, and staying informed about industry trends can help entrepreneurs make informed decisions to position their brand effectively.

In conclusion, the speeches by Ron Conway and the insights shared by Ikeda Noriyuki shed light on the power of being the first choice in the consumer's mind. Entrepreneurs and marketers who prioritize product excellence, invest in branding and marketing, and understand consumer decision-making processes have a higher chance of securing the coveted first-choice position. By incorporating these strategies, businesses can increase their chances of survival and success in today's highly competitive market.