As companies move up the hierarchy, their products become better, harder to leave, and ultimately create virtuous loops that make the product self-perpetuating.
In particular, I’m thinking more and more about step 2—retaining users. Sarah lays out two elements key to getting users to stick around:
- Accruing benefits – The more you use the product, the better it gets.
- Mounting Loss – The more you stay with a product, the more you have to lose by leaving.
She uses Evernote and Pinterest as examples of both accruing benefits and mounting loss. Another I would throw in that mix is Spotify. The personalize Spotify with things like custom playlists, the harder it is to switch to another service like Apple Music. I have to believe that “Creating a playlist” is in Spotify’s “Day Zero” strategy.