Would you like to interview one of these amazing people for Anthill?

img

How hard is it to get a new user?

January 12, 2010 | By Mick Liubinskas

Quick Answer: Very!

Long Answer: It depends (doesn’t it always?), and don’t under-estimate inertia.

When you’re starting a new product you start with no customers. You have to go and get your first one. OK, the first one is you, then your colleagues, then your friends, then your family…

Some will try you because they love you, but the real test with this crew is if they stay. That’s when you’ve earned them.

At some point (unless you’re Trib with one million ‘friends’) you have to find some strangers, get them excited and get them to try you out. There are generally two options with potential users: those that have no existing solution or those that have a competitive or substitute existing solution. Both pose problems.

No existing solution

If someone isn’t using anything to solve their problem, then maybe they don’t think the problem is really worth the trouble. Or it’s not worth the cost if there is an expensive or major hassle solution. Just because they look like they have a big need, and even if they say, “Yeah, it really sucks that I can’t ______” doesn’t mean that they care enough to spend money or time to get up off their comfy couch of doing nothing and have it solved.

Time and time again I see new apps on Read/Write Web, try them, like them and know that if I used them my life would be just that little bit better. But I don’t. The little bit better isn’t worth the mental weight of yet another ‘little bit better’ app.

So how much will get someone off the ‘using nothing right now’ couch? We’ll get to that later.

Using competitor/substitute

In a lot of ways, someone using something already is a better prospect. At least they care enough to use something.

But, instead of apathy costs, you’ve got switching costs. Obviously, some types of apps are very easy to switch from because there is nothing invested or locked into it. I can watch videos on any app all day long. I really don’t care as long as it plays. However, uploading my own vids or commenting may form a more long-term relationship/archive, making it worth my while to hang around. Email is the same. Blogging is the same. Feed readers, too.

So how much does it take to get someone to move from one product to another? Let’s look at it now.

Breaking Customer Inertia formula

I’m going to see if we can try and solve this mathematically, just to really mess it up.

how hard is it to get a new user image1 How hard is it to get a new user?

Of course, this maths is done in the blink of an eye and the click of a mouse. But it is done.

It’s the reason why you can’t just be better than the existing apps. Or you can’t just be really useful. You have to be insanely, grossly, massively, obviously, simply and wonderfully useful.

It’s why I say to the startups we work with at Pollenizer: Why don’t you start by charging people $100 a year for your app? “$100, no way anyone is paying that?” Well, if no one is going to pay $100 for your app, there is very little chance one million people will use it for free.

I’m serious. Start off aiming to make it $100 worth and worse case, when you offer it for free, people will be lining up in droves. Start off thinking it’s free, and you’ll get what you expect them to pay for it.

So the answer to the question — how hard is it to get a new user? Very easy, if you create seriously significant value. Impossible, if you create marginally good value.

Mick Liubinskas is one of Australia’s leading web strategists, having served in head marketing roles at Kazaa, Zapr and Tangler. He now runs Pollenizer, the business incubator he co-founded with former-Kazaa colleague Phil Morle.

Mick is a panellist at Anthill’s Online Marketing by Design event being held in Sydney on Tuesday February 02 from 6-9pm. For more information, click here.

Want to turn your secret skills into a brand?

Want an ad like this?

Learn the Five Step Sequence to becoming a Key Person of Influence and become a highly valued (and did we mention HIGHLY PAID) person in your industry Learn from five of Australia’s most inspiring minds.

Melbourne: 1 June 2012
Sydney: 30 June 2012
Normal Price: $39.

Being GOOD at what you do is no longer enough in the new economy. Spend ONE DAY learning from THE BEST. Click here to get your ticket.

  • http://www.eriontheinterweb.com Erietta Sapounakis

    How do you decide whether or not there is a need for the product, whether that need is pressing enough for the switch, or whether someone will theoretically pay $100? What research techniques, if any are involved?

    [Reply]

  • http://www.latentfuture.com Xavier Russo

    Great article Mick. It’s all too easy to underestimate the inertia that new products need to overcome to succeed in the market. Striving to deliver remarkable value, not just ‘being better’ is a timely reminder to all innovators. And on the flip side, once you’ve got an established customer base this force works to your advantage!

    [Reply]

  • http://www.mhits.com.au Harold Dimpel

    Excellent article Mick. Your comments reflect our experience in new user generation. http://www.mhits.com.au.

    [Reply]

blog comments powered by Disqus

Find Us on facebook

Latest Video

Waiting for the great leap forward? I think it’s already here [VIDEO]

Throw away your keyboard. Discard your mouse. All you need to do to control your computer is wave your hands about. No instruction manual needed, just a teeny, tiny device that reads your hand motions. Really. The revolution in human-computer interaction just took a massive leap forward.

More>>

Latest Comments

Ant Mart

Anthill Amabassadors

Growth & Export

Sponsored by How to become a Key Person of Influence

Key People enjoy a special status in their chosen field because they are well connected, well known, well regarded and highly valued.

More>>

thumb

Marketing & Media

Sponsored by Google

What do you know about Google AdWords? This hub was developed to answer the questions you already have, and those you haven’t thought yet to ask.

More>>

thumb

Tech & Innovation

Sponsored by AusIndustry

AusIndustry is a specialist program delivery division within the Department of Innovation, Industry, Science and Research.

More>>

thumb

Anty-Climax

Sponsored by Antmart

It’s a group buying site specifically created for entrepreneurs and business builders.

More>>

thumb

Upcoming Events

MAY
29

Want more leads and customers? Half day event to get big outcomes from a little budget.

Have you ever wondered… Why every industry has only a few businesses that thrive and get more leads? And they don’t suffer from cash flow problems or lack of leads, even when there is an ‘economic downturn’. They don’t have to ‘push’ or make stacks of cold calls.

More>>

MAY
22

WEBINAR: How to turn your knowledge into products… and build a global empire in your underpants!

This webinar is all about how to unlock your valuable industry knowledge and turn it into a product. It’s about how to increase the value of your business and take control of its future.

More>>