Developing products based on instant gratification

Instant gratification is a powerful product attribute in the always-on, real-time culture we live in today.

Drive-through donuts Dunkin'. Real-time music iTunes and book Kindle downloads. Overnight package delivery FedEx.

Whatever it is, do it faster and you'll win market share. I'd argue that Google's tremendous rise was fueled by its development of a real-time capability for online advertising. Although Google is known for its search engine, the innovation that turned it into one of the most successful companies on the planet is the real-time Google AdWords application, which allows advertisers to bid for ad placement by keyword.

You can often create a new market niche, and a competitive edge, by delivering faster than everybody else, by doing in real time something that normally takes much longer.

GutCheck it

Consider the market research business. In the old days, the process of doing quantitative research meant a long process of data collection by telephone, mail, or in person. Real-time Web applications like SurveyMonkey allow instant survey creation with results you can see quickly.

In the qualitative research arena, the process of interviewing people in a target market usually required spending a bunch of money to run focus groups or sending interviewers to the mall with a clipboard. The process takes an incredibly long time.

A new company called GutCheck, was founded to be a real-time service to conduct qualitative research. The company recently received $2 million in Series A Funding.

The idea is that when a marketer wants some instant consumer feedback (to hear about new product packaging perhaps, or to test marketing copy), they do it right away on the Web.

Marketers use the GutCheck Web interface to draw locate an individual with precise demographics (from a universe of millions) who is willing to be interviewed by text chat. The "meeting" is instantly brokered, and the marketer pays $40.

Imagine if the Gap had done some interviews prior to the failed attempt to change their logo?

In every industry there is opportunity to do for customers in real time what now takes a long time.

Consider your own marketplace. What task could you make real time? Would your buyers be willing to pay a premium to get it faster? Or is there an untapped market waiting for you to deliver in real time?

I’ll leave that to your imagination. But look around. In almost every field of endeavor there’s an opportunity to harness speed to your advantage and create a product or even an entire company from it.

More examples of real-time products are in my new book Real-Time Marketing & PR which was released on Monday.

Image: Shutterstock / Eugene Berman
Disclosure: I am on the board of advisors of GutCheck

Comments

[Matt]

Bootstrapping a start-up has been nothing but creating product based on real-time reactions.

In a market that is heavily saturated with competition, I feel that staying dynamic and agile with your business model will keep you ahead of the pack.

[Matt Warta]

Thanks for the great post. For those who figure out the real-time puzzle of their industry, there will be many other new applications they can build which will be enabled by the real-time technology they put in place. This movement will be fascinating as it evolves.

[David Meerman Scott]

Matt and Matt -- thanks for jumping in. There are so many virgin markets for developing a real-time approach. It is a great time to be an entrepreneur!

[Doug Brockway]

David -

There are parts of the economy that create products in real time as a matter of course. I'm thinking of market makers who set an ask or bid price and make, or don't make, an instant market.

In the past decade the mortgage industry, and most consumer loans, had this attribute. When everyone was trying to sell LOTS of loans so they could package shady CDOs originators, and their up-stream investors, would loosen guidelines hourly. If they needed more Option ARMs today from Minnesota they'd offer another half point of yield premium to the broker. Now, its the opposite. If the risk of mortgages from Minnesota this month is trending high they'll slap on some more conditions for a few days.

Suffice it to say this is big business and, if you get it wrong it can go bad far faster than other methods because it is, itself, moving quickly.

This is no reason to stop. Its a reason to quickly and with intelligent rigor get experienced and exposed to the ups and downs, the pros and cons. My colleagues and I tend to examine product life cycles that go for at least months, usually years. You're on weeks/days/even hours. Such fun!

[David Meerman Scott]

Doug - sure, you can get it wrong. However, in my experience, the worse way to get it wrong is to insist on the slow and plodding. When a product takes two years to build, the market frequently moves by the time it is released (just ask the auto companies).

[Dave Costello]

David:

I enjoyed the tie-in and reading about SurveyMonkey and GutCheck. Both are excellent ideas.

Most academic curriculum related to marketing, management, or PR has comprehensive study on market research.

However, for many companies in the "real world," they don't share the same passion for research--either due to costs, time, or know-how. This neglection often leads to the demise of their new product launch.

Now they should have no excuses.

[David Meerman Scott]

Dave - that's true. Many marketers just use their own instincts which usually misses the mark with buyers