The Secret to Understanding CONSUMER TRENDS

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Guest Teacher: Allen Gannett @Allen 

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Welcome to the ten minute MBA, I'm yourhost Scott de Clary on the ten minute NBA, I give you tools, tacticstrategies, insights that you can use to start scale grow or ten X, YourBusiness Today, your guest lecture is Alan Gannett. He is the x CEO of trackMaman. He is currently an angel investor. He is the author of thecreative curve and he is a Forbes. Thirty, under thirty he's going toteach you how to think about consumer trends when you are taking a product tomarket novelty, verses, Innovation, verses, familiarity and how to bestunderstand what actually resonates with your customer. I hope you enjoy one of the things I think really throwspeople for a loop. Is Consumer trends like. Why are certain things popularwhen they're popular right like that really gets people like feels reallysusquesahanocks, but the reality is we...

...actually have all sorts of amazingsociology psychology, research. It tells US exactly why consumer trendshappen and, like I'll, give you examples for one of the most prominentforces it's as humans. We have these two sort of urges. I like to call themthat we've developed over time, one is that our brain has realized it sort ofcoded that things that we see that are familiar represent safety right. So Ithink about you know when you see your door for home safe place. If you see adoor that is the same physical door, but's a place, you've never been beforeyour brain's own. What's behind that door could be potentially so a risky,and so merely the fact that something's more familiar changes. What we thinkabout and so familiarity breeds this idea of safety. As a result, we alsotend to fear things that are unfamiliar because we're like what's there. Sothat's one urge we have the other urge.

It's really important to understand.The consumer trends is that we've also developed this novelty seeking behavior,where, when our brain see something new, it gives it what's called a noveltybonus, which is basically. This word like perceived benefit to that, whereit's like, okay, that piece of fruit that I've never seen before kind oflooks like a weird strawberry. Oh well like I should try eating back, becauseit might actually be delicious right. It might be. You know breakfast thinkabout when people were hunter gathered. So it's interesting. These two thingsare contradictions. Right, like literally, I just told you likefamiliarity, breeds safety. Novelty breeds pursuit that doesn't make senselike those those are contradict. What it is is is our brain rally is constant.Looking for things blend of the familiar in the novel, we like thingsthat are far enough to be safe, but yet not enough to be new, so think about.If you saw a berry when you were a hunter gatherer that was sort of like aweird strawberry, you got okay, I'm...

...going to eat that it's probablydelicious. If you saw berry, look nothing like anything you've ever seenbefore. You might be like a little bit too much like in my be poisonous, I'mgoing to leave a beat, and so, as a result, would you find with consumertrends? Is that over and over again there's all these studies to basicallyshow that the things that people like things that have one foot in thefamiliar and one foot in the new? And so if you think think about like applelike apples, are great example. This, like apple, we think about, is likesort radical innovation, but I actually know like that's not the story of Apple.If you look at applies when they released their first tablet device theApple Newton, it was a spectacular failure. People were like this is crazy.I don't want this, but then fast forward. Today, I had table computerslike wildly successful. You think about it like getting to the point where theI had would be adopted by consumer was actually very incremental right so,like the IPAD was an iphone without a...

...phone. The iphone was an ipod with athumb, the I pons a better amptee player right so like if you actuallylook at a lot of creative success stories, which will tend to find isthat the ones that are successful adopted by consumers tend to be muchmore incremental than we realize, because we have those two urges thatpursuit the familiar and that pursuit of the novel that Co Exist. I really that's that's very insightful,and it makes a lot of sense now. I'm just wondering for somebody who isbringing a new product to market, like you mentioned with with apple thethe familiar and the novel do contradict. So how do you strike thatbalance when you're trying to you know, go into a blue ocean? You don't have areference point as a business yeah great question, and this is where a lotof entrepreneurs really attract because they build what is in their mind, themost advanced or the best set of...

...features, not actually the right thingto do and the book I tell the story camp as network, which was a socialnetwork gard a month before facebook, at Columbia, university by the studentbody. President, when Viral on Columbia's campus, the CO founders, it took off much likethe facebook Co finers did in order to focus on it for a while, it was growing.It's interesting is campus. Never obviously did not work right. We arenot talking about you, know, Adam and Wayne who started it talking to marteckere, and what's interesting, though, is that campus network actually haddramatically more features and a lot of features which much later facebookwould have and lead to a lot of success. The activity fee groups events a lot ofthese things they had years before facebook years it was interesting, is if you go backand you talk to the people who are involved in this, like I interviewedthe folks from campus that work and all stuff, it's like one of the things theypoint out is that one of the reasons...

...facebook on was that it was likeincredibly simple, and so you know, people at the time were using screennames and pseudonyms online. So, like the amount of novelty they were willingto have was like just having the real name and photo and a directory, which Iwould fasel started, as rightly that was enough. The idea that you're alsogonna have all this other stuff out about. You was like not no like thatwas not so many people were comfortable with, and you saw this facebook veryslowly over time. Added more and more public features than may you morepublic, as we as consumers became more comfortable with an. I think. It's areally great example when it comes to technology businesses, but it's so easyas a technology business to build the best features from a technicalperspective or from a sort of metaphone. I don't know like a first principlesperspective, but, like your job is not to just create something that has themost bells and whistles, but it's actually something that customers wantus, and so I think that's really...

...important. This is why even the BlueOcean, I think the thing that it's important is usually start with eithera wedge or a metaphor. Right start with a much smaller feature set that peopleare ready for and over time, expand or start with sort of, like a metaphor orwhere you're doing something that maybe in a new space, but it's a familiarprocess and is letting you eventually grow into that Blue Ocean. But youcan't just go and build the Blue Ocean. No one will lie anyways, that's it fortoday. I hope you got some value out of Allan's advice on better understanding,consumer trends, better understanding, your customers. Remember any businessquestions you have. Don't worry. I got you. This has been another ten minute.NBA have a great day I'll, see you tomorrow to.

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