The Product Value Growth Curve: Sustaining Demand in Competitive Markets
In my experience working with startups, I've noticed that they often serve as testing grounds for new business ideas. Most startup ideas don't make it far, but every now and then, something intriguing emerges—even if results aren't immediate. I find these cases particularly interesting.
Have you ever wondered why some products instantly win user love? When startups create something genuinely useful for a specific audience, demand usually spikes. This initial attraction sets them apart. Sadly, startups often blur this clarity by adding unnecessary features, complicating the product, and weakening its original appeal.
Meet the Value Growth Curve
Keeping users interested long-term can be challenging. That's why I find the "Value Growth Curve" concept so helpful—it advises startups to add only those features that genuinely strengthen the primary reason customers chose their product.
Imagine a simple note-taking app. People love it because it's quick and intuitive. If you start adding complicated analytics or social-sharing features, you might temporarily impress new users but risk losing the loyal ones who valued simplicity. It’s like adding too many toppings—you lose the original flavor.
How is it Different from the Blue Ocean Strategy?
The Value Growth Curve reminds me of the "Value Curve" from Kim and Mauborgne’s bestseller Blue Ocean Strategy, which urges companies to stand out by breaking market norms. But there's a crucial difference. Blue Ocean Strategy encourages creating entirely new markets to escape competition. The Value Growth Curve, however, focuses on thoughtful improvements over time in existing markets to keep current users satisfied.
Instead of constantly chasing new market spaces, the Value Growth Curve helps startups remain true to the reasons users initially fell in love. This matters especially in crowded markets, where retaining current users is just as crucial as attracting new ones.
Examples from the Real World
Remember how Uber disrupted transportation with convenient, transparent, affordable rides? That clear focus led to explosive early growth. However, around 2014, Uber expanded into food delivery (Uber Eats) and premium rides, complicating its offering. While these new services boosted revenue, they didn't enhance Uber’s original advantage and ultimately diluted its main appeal.
Airbnb started as a straightforward platform for booking unique accommodations, rapidly gaining popularity. Around 2016, Airbnb introduced "Experiences" like tours and cooking classes. Although interesting to some, these extras added complexity and slowed growth in Airbnb's primary lodging business.
Tesla provides a strong counterexample. Tesla consistently stayed focused on its core appeal—innovative, sustainable electric vehicles—continuously enhancing this through improved battery technology and regular software updates. Even advanced features like Autopilot directly supported Tesla's original promise, sustaining steady growth and industry leadership.
Practical Steps for Startups
Startups can leverage the Value Growth Curve by:
Limitations and Exceptions
Of course, there are exceptions. Sometimes, features initially seen as peripheral become essential as user needs evolve. The secret is staying responsive—ensuring new additions genuinely complement your core offering.
In the end, I believe the Value Growth Curve helps startups keep their users happy, grow sustainably, and stay focused on what matters most. Unlike strategies driven purely by innovation, this approach builds lasting relationships with users and ensures stable demand, positioning startups for long-term success.