Just evil enough: Subversive marketing strategies for startups | Alistair Croll

Understanding Product Market Fit and Subversive Strategies

The Importance of Complete Solutions

• Many products fail to sell because they only offer part of a solution.

• David Ricketts, a Harvard professor, illustrates this with the example of Kraft Macaroni & Cheese, which combined powdered cheese with macaroni to create a complete meal.

Introduction to Alistair Croll

• Alistair Croll is an influential figure in data-driven startups and author of "Lean Analytics."

• He is releasing a new book titled "Just Evil Enough," focusing on how to capture attention for startup ideas.

Key Themes from "Just Evil Enough"

• The book presents 11 strategies for finding subversive ideas that help launch startups successfully.

• It emphasizes the importance of shifting mindsets towards thinking subversively in today's market.

Challenges Faced by Startups

• Croll notes that many product managers focus too much on features rather than go-to-market strategies.

• He argues that understanding distribution and capturing attention are crucial for turning interest into profitable demand.

Examples of Subversive Success

• Successful companies often utilize systems in unintended ways rather than engaging in unethical practices.

Understanding Growth Strategies in Startups

The Importance of Innovative Tactics

• Companies like Loom, Mixpanel, and Algolia utilize Hex daily to enhance their productivity. A call to action is made for a 60-day free trial at hex.tech/lenny.

• Netflix's strategic choice to focus on DVD rentals via postal service rather than streaming highlights the importance of leveraging existing infrastructure effectively. Blockbuster overlooked this opportunity.

• Whitney Hess’s "top-shelf tactic" involved creating university posters that subtly positioned Bumble as a top app not approved by universities, showcasing clever marketing through unregulated platforms.

Subversive Marketing Techniques

• Founders often have growth strategies focused on SEO or paid growth; however, successful companies find unique and subversive methods that stand out from conventional approaches.

• The concept of "zero-day marketing exploits" emphasizes the need for startups to discover unprecedented tactics that can drive growth beyond traditional methods.

Collaboration and Learning from Global Examples

• Co-authors Emily and the speaker share insights from different markets (Europe vs. North America), revealing untapped tactics that could be beneficial if applied across regions.

• The book titled Just Evil Enough aims to convey that being slightly unconventional or taking calculated risks can lead to significant advantages in startup growth.

Challenging the Status Quo

• Startups inherently challenge established norms, which may lead them to be labeled as "evil." This perception is part of navigating market dynamics where innovation disrupts traditional power structures.

• A quote from Chris de Burgh's song illustrates the ongoing struggle between good and evil in business—highlighting the necessity for startups to advocate for their value propositions actively.

Historical Context and Lean Startup Methodology

• The discussion references experiences from a startup accelerator called Year One Labs, emphasizing lessons learned about testing ideas quickly rather than waiting until perfection before launching products.

Exploring the Dynamics of Questioning and Startup Growth

The Power of Asking Questions

• A study showed that 95% of strangers would respond to questions asked via geofenced tweets, highlighting a strong willingness to engage.

• There was a discussion about the ethical implications of "fake-asking" questions to encourage user interaction, emphasizing the importance of understanding moral boundaries in innovation.

• The concept of being "just evil enough" emerged as a strategy for startups to challenge the status quo while still maintaining ethical integrity.

Learning from Real-world Examples

• By sending location-based questions through an app, data collection on user experiences in bars or restaurants became possible, similar to feedback mechanisms used by Google Maps.

• Scott Belsky's experience with Behance illustrated how pivoting from direct requests for participation to interviews allowed him to gain valuable content and social proof for his platform.

Strategies for Overcoming Cold Start Problems

• Engaging users by asking questions can serve as a method for new platforms to demonstrate expected behaviors and foster community engagement.

• Founders are encouraged to think creatively and adopt a mindset that embraces subversiveness in order to grow their startups effectively.

Understanding System Awareness

• Recognizing that startups often represent a disagreement with existing norms is crucial; understanding the current system allows innovators to identify opportunities for disruption.

• System awareness involves knowing your environment well enough to find novel approaches within it, which is essential for startup success.

Innovative Thinking Exercises

• An example from Stanford's entrepreneurship class demonstrated how students could turn $5 into significant revenue through creative problem-solving and innovative thinking.

Understanding Novelty in Marketing

The Importance of Seeing the Big Picture

• Recognizing the broader context of your business allows for innovative approaches. Once you grasp this, it's time to experiment with new ideas.

Examples of Novelty in Marketing

• Gymshark utilized social media creatively by having B-list celebrities wish a fictional character named Jim Shark a happy birthday, highlighting their brand's name recognition issues in North America.

• Reverse graffiti was employed by companies like the British Intelligence Agency to create engaging recruitment ads on sidewalks, showcasing unconventional marketing tactics.

• Coinbase's 60-second Super Bowl ad featuring a bouncing QR code was initially deemed ineffective but resulted in 20 million hits and server overload, demonstrating that novelty can drive significant traffic.

Turbo Boosting Growth vs. Sustainable Strategies

• While novelty can provide short-term spikes in growth (termed "turbo boosts"), businesses must also develop sustainable growth strategies such as paid growth engines or SEO.

• Successful companies leverage novel thinking to fundamentally alter their value chains, as seen with IKEA's flat-pack furniture model that revolutionized the industry.

Differentiation and Reframing Business Models

• To achieve lasting change, businesses should focus on differentiating themselves and reframing how products are delivered or created.

• This approach not only aids long-term growth but also generates immediate spikes when innovative ideas are implemented effectively.

Distinction Between Growth Hacks and Genuine Innovation

• Traditional growth hacks are often product agnostic; however, true innovation requires a deep understanding of industry dynamics—akin to zero-day exploits versus simple scripts.

• A study involving Navy sailors illustrated how those who adapted their strategies based on changing game rules outperformed those who strictly followed instructions.

Questioning Established Norms

• The difference between successful individuals lies in their ability to question whether they are playing the right game rather than just following established rules.

Embracing Disagreeable Thinking in Business

The Importance of Disagreeable Thinking

• The speaker emphasizes the need to normalize "disagreeable thinking" in business, suggesting that while some strategies may seem clever or even evil, they are often overlooked.

• Acknowledges a conversation with Rory Sutherland, advocating for a balance between agreeable and disagreeable approaches in decision-making.

Tactical Advice from Rory Sutherland

• Sutherland advises spending time on conventional smart strategies before dedicating time to irrational and unconventional ideas.

• Discusses the concept of wine lists as a system where pricing is flexible due to consumer perception rather than actual cost.

System Awareness and Market Scanning

• Introduces the idea of having a subversive mindset characterized by system awareness, novelty, and disagreeability when generating business ideas.

• Proposes the "Recon Canvas" framework for analyzing product-market fit, emphasizing that traditional product-market fit concepts are outdated.

Understanding Product Medium Market Fit

Reevaluating Marketing Strategies

• Argues that two companies with identical products can succeed or fail based on their medium strategy—how they engage with platforms and norms.

• Highlights the importance of understanding both product features and market dynamics through the lens of medium strategy.

Innovative Examples from Burger King

• Shares examples of Burger King's creative marketing tactics, such as offering free Whoppers if ordered from McDonald's parking lots to drive app installs.

• Discusses how Burger King engaged users by liking old social media posts, creating intrigue before revealing their new product offerings.

The Recon Canvas Framework

Structure of the Recon Canvas

• Describes the three rows of the Recon Canvas: objective, collective, and subjective perspectives on market analysis.

• Breakdowns include sections for product features/messages, medium/platform norms, and market attention/actions.

Go-to-Market Strategy Insights

Key Components of a Go-to-Market Strategy

• The speaker emphasizes the importance of considering 18 specific areas when developing a go-to-market strategy, encouraging exploration within each area for subversive opportunities.

• A total of 160 case studies were analyzed for the book, showcasing various clever marketing tactics and strategies.

Innovative Marketing Tactics

• An example from Runway illustrates a unique marketing stunt where influencers received a locked bag with a countdown timer, creating anticipation and engagement on social media.

• The concept of "forced unboxing" is discussed, highlighting how it can generate excitement and buzz around product launches.

Launch Strategies and Analytics

• The authors used strategic messaging to promote their book "Lean Analytics," employing scheduled tweets from influential figures to create momentum and track engagement through analytics tags.

• This approach led to competition among influencers regarding pre-orders, demonstrating effective use of analytics in marketing campaigns.

Brand Messaging and Subversive Ideas

• The discussion includes how brands like Burger King utilize cheeky messaging as an underdog strategy, while Liquid Death employs humor in its campaigns that often aim for 50% disapproval as a metric for success.

• The speaker encourages thinking creatively about generating attention-grabbing ideas using frameworks like the Recon Canvas.

Case Studies and Tactical Patterns

• The book features insights from diverse historical examples beyond business, including figures like Genghis Khan, illustrating recurring tactical patterns across different contexts.

• Eleven key tactics are identified that can be adapted rather than copied directly; these serve as guidelines for innovative market approaches.

Practical Applications of Tactics

• A focus on identifying vulnerabilities in markets or products allows businesses to apply learned tactics effectively.

• Vanta's promotional message highlights the importance of security practices in business operations while offering tools for compliance management.

Turning Weaknesses into Strengths

The Power of Simplicity

• Companies can transform their weaknesses, such as a limited feature set, into strengths by emphasizing simplicity. Salesforce exemplifies this with its focus on being user-friendly despite having its own programming language.

Identifying Market Opportunities

• Recognizing limitations can lead to discovering new market segments that value those very limitations. For instance, products that require extensive configuration may appeal to prosumers who appreciate customization.

Buyer Upgrade Strategy

• The "buyer upgrade" tactic involves identifying and targeting different customer segments that may benefit from your product without changing the product itself. This approach can reveal untapped markets.

Case Studies in Market Repositioning

• Mr. Clean's Magic Eraser transitioned from an aircraft insulation material to a popular cleaning product after observing consumer behavior. Similarly, drones initially designed for bridge inspections found success when marketed to insurance companies instead.

Access as an Advantage

• Having unique access to resources or networks can provide significant advantages in marketing and sales strategies. Examples include leveraging personal connections or experiences to gain traction in competitive markets.

Innovative Marketing Strategies

Utilizing Personal Networks

• Entrepreneurs should assess their personal networks for potential advantages, such as exclusive access to influential individuals or resources that others lack.

Bait and Switch Tactics

How to Effectively Market Your Business

The Bait and Switch Strategy

• A dinner party is used as bait to attract individuals interested in running their own businesses, leading them into a multi-level marketing scheme.

• Energage, an HR software company, collaborates with local newspapers for the Best Workplaces Survey, generating interest through employee participation.

• The tactic involves selling something exciting initially (the survey), then transitioning to the actual product (HR software) by leveraging collected data on employees.

Combining Products for Enhanced Value

• David Ricketts from Harvard highlights that customers may not buy a product if it only offers part of a solution; combining products can create more value.

• Kraft's powdered cheese was successfully marketed when combined with macaroni, transforming it into a ready-made meal.

• 1-800-MATTRESS improved sales by including mattress removal services, addressing customer pain points in New York City.

Understanding Arbitrage in Business

• Arbitrage refers to gaining an advantage by knowing information others do not; this can be achieved through various means.

• Historical example: The Chappe optical telegraph allowed messages to travel quickly across France during the 16th century, showcasing early communication advantages.

• Some bankers exploited this system by introducing errors in messages to gain stock market insights before others could react.

Leveraging Early Information for Growth

• In social media's early days, analysts discovered growth indicators through user account numbers available via APIs—an ethical yet advantageous insight.

• Farmville’s rapid growth was fueled by insider knowledge from Zuckerberg about app posting capabilities on Facebook timelines.

Exploring Data Aggregation and Market Positioning

The Concept of Data Aggregation

• Discussion on organizations that engage in illegal activities until they are deemed illegal, highlighting the moral implications of such actions.

• Introduction to LP Maurice and his company Busbud, which aimed to simplify bus ticket purchasing by aggregating schedules from various sources.

• Description of how LP utilized automation to compile extensive data on bus schedules, creating a structured database for users.

• Explanation of how well-structured data attracted search engines, making Busbud a go-to platform for bus travel information.

• Strategy employed by LP to convince bus companies to collaborate after demonstrating significant traffic driven to their sites.

Ethical Considerations in Data Aggregation

• Mention of Get Satisfaction as an example of unethical aggregation practices, where complaints about Sony were exploited for profit.

• Emphasis on the importance of consent when aggregating data and the potential negative consequences of assuming it.

Problem Solving Through Innovation

• Recognition that successful business models often solve real problems creatively, as seen with Busbud's approach to providing accessible bus schedule information.

Reframing in Marketing Strategies

• Introduction to reframing as a marketing tactic; contrasting toothpaste brands Colgate and Crest based on different consumer motivations (sex appeal vs. clinicality).

• Example of Tom's of Maine reframing its product by emphasizing natural ingredients over traditional marketing dimensions like fluoride content.

Positioning vs. Reframing

• Clarification that positioning refers to a brand's place within existing market dimensions while reframing involves redefining those dimensions entirely.

Electric Cars and Market Disruption

Rethinking Electric Car Marketing

• Tesla's approach to marketing electric cars focused on performance, appealing to wealthy coastal venture capitalists by emphasizing speed and acceleration, unlike traditional ads for vehicles like the Prius that ignored these metrics.

The Role of Regulation in Business Strategy

• In competitive markets, understanding how value is scored can lead to innovative strategies. Regulatory frameworks can significantly impact business operations and growth potential.

Case Study: Organ Donation Rates

• A comparison between Austria (99.6% organ donation rate due to opt-out system) and Germany (12% with an opt-in system) illustrates how regulatory approaches can drastically influence outcomes.

Finding Loopholes for Innovation

• Startups often overlook regulatory changes as a strategy; however, identifying loopholes can create new opportunities. Examples include urban parklets created under existing parking laws.

Creative Use of Regulations

• An English man creatively circumvented regulations by building a park on top of a car, demonstrating how clever interpretations of laws can lead to innovative solutions.

Strategies for Market Disruption

• Discussing various strategies such as misappropriation (e.g., Netflix using postal services), reframing market perceptions, and leveraging the Overton window—what is considered acceptable in society—to gain market traction.

Normalizing New Concepts

• The normalization of topics previously deemed taboo (like gay marriage or menstruation products using red liquid in ads) shows the power of shifting societal norms through strategic marketing efforts.

Operationalizing Innovative Ideas

• To implement these strategies effectively, teams should brainstorm ways to be disagreeable and embrace novelty while considering their market context.

Embracing Absurdity in Marketing

• Encouraging creative thinking involves ignoring conventional limits and exploring extreme ideas—illustrated by the unconventional marketing tactics used during "The Blair Witch Project."

Exploring Innovative Thinking Techniques

Spiky Point of View and Innovation Strategies

• Wes Kao emphasizes the importance of having a "spiky point of view" in innovation, which helps differentiate ideas and approaches.

• Introduction to TRIZ, an innovation formula that combines unrelated fields to overcome obstacles creatively.

• Discussion on construal level theory, which focuses on how to bring distant ideas closer for better understanding and application.

Neuroscience and Brainstorming Techniques

• Exploration of neuroscience principles that aid in selecting effective strategies and brainstorming effectively.

• The concept of pre-mortems is introduced, encouraging teams to anticipate potential failures before they occur.

Counterfactual Thinking

• Encouragement to ask counterfactual questions such as: "Is the opposite true?" or "Would this be better if done at a different time?"

• Importance of seeking external perspectives by asking what conclusions a smart coach might draw from the same information without bias.

Real-world Applications in Startups

• The speaker shares experiences working with four startups that successfully identified go-to-market strategies using these techniques.

• Mention of a workshop conducted at Startupfest where participants actively engaged with workbooks, demonstrating practical applicability.

Course Development and Framework Focus

• Plans for creating a course with Wes and Gagan at Maven are discussed; it aims to make concepts more applicable rather than anecdotal.

• Emphasis on the necessity for startups to have unique marketing exploits that generate sustainable demand when pitching to investors.

Shifts in Product Development Paradigms

• Comparison between traditional product development processes (like battleships or software development), highlighting the need for flexibility in changing features early on.

• Discussion about how technology has altered risk levels associated with various stages of product delivery, advocating for reevaluation based on current capabilities.

Leveraging Technology for Market Insights

• Suggestion that modern tools like LLM and Figma can facilitate rapid prototyping and testing ideas with stakeholders efficiently.

Innovative Survey Strategies

• Description of an innovative survey approach used early in their project to gather insights while incentivizing participation through competition between teams.

Case Studies Integration

• Introduction of QR codes next to case studies in their book, linking readers directly to additional content such as videos or resources related to each case study.

Don't Actually Be Evil: Key Insights

Ethical Considerations in Business Practices

• The discussion emphasizes the importance of ethical behavior in business, clarifying that the authors do not advocate for harmful actions. They highlight a chapter titled "Don't Actually Be Evil" to reinforce this message.

• Specific unethical practices are outlined, including abuse, assuming consent without approval, lying, using dark patterns, and breaking laws. These actions are categorized as universally bad and should be avoided.

• An egregious example is provided involving a company called Afterlife that exploited obituaries to market flowers long after funerals. This case illustrates clear wrongdoing leading to criminal charges.

• The conversation shifts to nuanced examples of questionable ethics, such as the Chrysler PT Cruiser's design aimed at circumventing fuel efficiency standards rather than genuine consumer needs. While legal, it raises moral concerns about corporate responsibility.

• The authors propose guidelines based on Occam's razor: avoid assuming consent, act with permission, refrain from exploiting others ("don't punch down"), and adhere strictly to laws while avoiding deceptive practices.

Engaging with Readers and Sharing Ideas

• Alistair encourages listeners to purchase their book and share their own examples of subversive thinking or unethical practices they have encountered. He expresses enthusiasm for engaging discussions around these topics.

• The book aims to blend frameworks with entertaining narratives akin to conversing with an intriguing person at a cocktail party. This approach seeks both educational value and enjoyment for readers.

• Listeners can connect through justevilenough.com or social media platforms where Alistair and Emily are active. They invite contributions from readers regarding interesting stories related to ethics in business.

Recommendations and Personal Favorites

• In the lightning round segment, Alistair shares his top book recommendations: "The Unaccountability Machine" by Dan Davies; "The Righteous Mind" by Jonathan Haidt; and "Made to Stick" by Dan & Chip Heath as essential reads for understanding marketing principles.

• He mentions enjoying David Fincher’s film "The Killer," highlighting its self-awareness as a standout feature that resonated deeply with him during viewing.

• A practical product recommendation follows—a $100 folding second screen for MacBooks—emphasizing its productivity benefits despite its simplicity.

• Alistair discusses branding realities on platforms like Amazon, noting how brand names often lack significance compared to product quality or user experience when selecting items online.

Life Philosophy

Reflections on Collaboration and Memories in Montreal

Nostalgic Reminiscences

• The speaker reflects on a memorable quote: "It's amazing what can get done when nobody cares who gets credit," highlighting the importance of collaboration over individual recognition.

• A shared memory of tobogganing in Montreal is recounted, emphasizing the fun experiences during their time working together at a startup.

• The transition from San Diego to Montreal is discussed, noting cultural differences and the excitement of embracing new experiences.

Early Days in Montreal

• The speaker recalls arriving in wintery Montreal and needing to purchase winter gear immediately, illustrating the stark contrast from San Diego's climate.

• An anecdote about using a hackathon for Year One Labs is shared, showcasing innovative approaches to recruitment and product development.

Startup Innovations

• A project involving Foursquare check-ins is mentioned, where they aimed to help restaurant owners understand customer behavior before and after dining.

• The speaker describes presenting their prototype at the hackathon, claiming success with three companies interested in their product.

Insights on Product Development

• Discussion centers around understanding customer analytics for restaurants, focusing on how previous locations could inform marketing strategies.

• The conversation highlights confidence in entrepreneurial endeavors; even if one idea fails, there’s potential for future successes.

Closing Thoughts and Future Engagement

• Information about pre-ordering a book related to subversive thinking is provided along with plans for webinars for early buyers.

• Listeners are encouraged to share examples of subversiveness as part of an initiative to gather innovative ideas that challenge norms.