How to Sell Products by Understanding Customers

TL;DR

Successful product sales begin with observing customers in the real environment where buying decisions happen. Exploding Kittens grew from a $10,000 Kickstarter target to nearly $9 million in 30 days by focusing on its crowd, while its founder continues studying why shoppers notice, pick up, replace, or ignore games at major retailers.

Transcript

We launched this thing saying, "All right, let's let's aim for $10,000." We hit our $10,000 goal in 7 minutes. And in the first 48 hours, we had $2 million. After that is when the story gets really interesting. Okay. Well, good. Uh Sam, do you want me to kick it off? Yeah. Wait. Well, yeah, I do. First of all, Sean, how did you guys even come to th... Read More

Key Insights

• Exploding Kittens reached a $10,000 Kickstarter goal in seven minutes, then generated $2 million in its first 48 hours and nearly $9 million over 30 days. The response transformed a modest crowdfunding target into demand for an initial production run of 700,000 games.
• Customer understanding is rooted in context, because shoppers may replace a product for reasons unrelated to the product itself. Another box might catch their attention, the shelf arrangement might redirect them, or their original reason for entering the aisle might shape the final purchase.
• Direct observation is a practical form of market research. Elan Lee planned to work as a Walmart associate so he could watch customer behavior, ask shoppers why they picked up or replaced games, and gather stories that conventional sales figures do not provide.
• Retail shelf space is evaluated as a revenue-producing asset. The discussion describes major retailers considering sales in relation to physical shelf area, which means every portion of the games aisle must justify its placement through product performance and customer attention.
• Exploding Kittens is a 10-year-old company with slightly fewer than 100 employees. It is based in Los Angeles and maintains offices in Canada, Europe, and other locations where it also operates distribution centers, reflecting the operational reach required by its sales volume.
• Exploding Kittens sells one game every 6.4 seconds around the clock, according to a calculation shared by its founder. The company’s original 700,000-unit print run once seemed extraordinary, but he says that quantity would now sell out too quickly to be worthwhile.
• Trust can reduce the friction involved in exploring unfamiliar opportunities. Lee attended an unusual basketball gathering without receiving many details because the invitation came from one of only four people whose recommendations he follows without asking questions first.
• Product innovation can begin with irritation and benefit from constraints. The episode’s listed themes connect creativity with boundaries, treat recurring frustrations as potential sources of innovation, and encourage choosing work that remains engaging rather than pursuing an activity that repeatedly creates boredom.

Questions & Answers

Q: How did Exploding Kittens succeed on Kickstarter?

Exploding Kittens began with a goal of raising $10,000. It reached that target in seven minutes, generated $2 million during the first 48 hours, and raised nearly $9 million within 30 days. The episode frames the campaign around focusing on the crowd rather than merely pursuing funding, suggesting that strong audience engagement was central to the exceptional response.

Q: Why is understanding customer behavior important for sales?

Customer behavior reveals why people notice, handle, reject, or purchase a product in the actual buying environment. A shopper may put down a game not because the game is unsuitable, but because another product catches their attention. Understanding these contextual decisions helps a company interpret sales more accurately and improve how its products compete for attention.

Q: How can direct observation improve retail product sales?

Direct observation lets a company see decisions that aggregated sales data cannot fully explain. Elan Lee wants to spend time working inside Walmart, watching the games aisle and speaking with customers about why they entered, selected one game, replaced another, or walked away. Those individual stories can expose practical barriers and attractions affecting product performance.

Q: Why did Elan Lee plan to work as a Walmart associate?

Elan Lee planned to work as a Walmart associate because he wanted an on-the-ground understanding of shoppers rather than publicity. His goal was to remain in the retail environment long enough to ask why customers approached the aisle, picked up particular games, put products back, and changed their attention when another item appeared.

Q: How large did Exploding Kittens become after crowdfunding?

Exploding Kittens reached its 10-year anniversary with slightly fewer than 100 employees. It is based in Los Angeles and has offices in Canada, Europe, and other places associated with its distribution centers. The founder also reported that the company sells one game every 6.4 seconds around the clock, based on its calculation.

Q: What does Exploding Kittens reveal about creative businesses?

Exploding Kittens shows that a playful, creatively driven product can also support a substantial business. The hosts describe the company as both an artistic project and a commercial operation, noting that several of its games occupy leading sales positions. Its growth challenges the assumption that founders must choose between enjoyable creative work and financial success.

Q: How do retailers evaluate board game shelf space?

The discussion presents shelf space as a limited commercial asset that retailers evaluate through sales relative to physical area. A seemingly ordinary section of the games aisle can represent substantial revenue, so every portion must perform. For a game company, packaging, placement, competing products, and customers’ shifting attention all influence whether that space produces sales.

Q: What business lessons come from the Exploding Kittens story?

The story emphasizes focusing on the crowd, observing customers in context, pushing beyond an initial rejection, and treating business as a game. It also identifies constraints as useful for creativity, irritation as a source of innovation, and sustained personal interest as a guide for choosing work. Together, these ideas connect product design with customer-centered experimentation.

Summary & Key Takeaways

• Elan Lee describes how Exploding Kittens developed from a $10,000 Kickstarter goal into a large games company. The campaign reached its target in seven minutes, generated $2 million during its first 48 hours, and approached $9 million within 30 days, leading to an initial production run of 700,000 games.

• The company’s retail philosophy centers on studying customers in context. Lee wants to work inside Walmart, speak directly with shoppers, and understand why they enter the games aisle, notice particular boxes, pick up one product, replace another, or leave without purchasing. These observations can reveal influences that sales reports cannot explain.

• Exploding Kittens reached its 10-year anniversary with slightly fewer than 100 employees and offices connected to distribution centers in Los Angeles, Canada, Europe, and other locations. Its catalog includes several leading games, and the company sells one game every 6.4 seconds around the clock, according to its internal calculation.