Category Archives: Consumer Internet

Google in its mid-life crisis!

Few days back, read an article about Larry Page, Founder and now-CEO of Google attempting to pull Google out of its mid-life crisis. The article headline was catchy, but no justification of what exactly is this mid-life crisis about.

Below are my views on what I believe are the 10 biggest challenges Google is facing right now and why it might be a tough-time forward for the Internet giant. Flip through the presentation below or read the long post below.

 

1. Search

Yes – Search. Google’s core product is facing threat from another format of search: Real-Time Search.

Google continues to add more capabilities to index real-time information to its search algorithms; but fails to realize that traditional web-index based search is different from real-time search. Last year (April 2010), in its caffeine update Google claimed to provide 50% more fresher results. Nov 2011 it rolled out another set of changes to its search algorithms that affects 35% of all search queries. Again same month, it was discovered that Google started indexing comments on Facebook.

In real-time search, the context in which the information retrieved is no longer valid after sometime. In case of Twitter it does not last beyond a day. Or a week? Same with Facebook. At this same point while consumer search for this information on Google – it is impossible to figure out the context of that search query – real-time info or traditional.

Example. Apple launches its next smartphone – iPhone 5. Consumers looking for “smartphone” on Google Search are shown iPhone 5 results, even when they are not looking for it.

Methods of information indexing, querying, trending, and even consumer mindset for real-time search are different than traditional search. Google may end up killing product experience of Traditional web search with such attempts.

Content index based web search & real-time information search are different products. If Google intends to capture a mind-share of Real-Time web search; it needs to build a different product.

 

2. The Rise of Discovery Platforms

For years, Search was our only means to discover websites, content, products, services. Google was our gateway to the Internet.

Today, with social networks like Facebook, Twitter, LinkedIn and similar; consumers are discovering more and relevant websites, content, products or services. They come to us with recommendations, shares, comments from our contacts – and are more relevant. Interpret this as – Google is no longer the only discovery mechanism.

User adoption for Social Networks is increasing; they continue to have high mindshare and also consumers are spending more time on social platforms today. In addition to this, a whole new wave of innovative products are launched on top of Social Graphs enabling contextual discovery.

Social discovery methods are threat to Search.

 

3. Social

After 750+ Mn users on Facebook, 380+ Mn on Twitter, 115+ Mn on LinkedIn; Google now does understand the importance of having a Social Product.

Its earlier attempts – Orkut, Buzz, Wave failed. It is making a big push with Google+, trying to create a new Social Graph, without realizing that they are already established.

Social Graphs are reflection of our Social Relationships in real world. And they are:

  • Close Relationships: Facebook
    Family, Friends – People you know personally!
  • Professional Relationships: LinkedIn
    Colleagues, Partners, Business Relationships
  • Loose Relationships – Twitter
    Celebrities, Domain Experts. People you know, but they may not know you.

There is no room for creation of another graph. And for Google+, I strongly believe that it will fail again as it is still miles away from being a great social product.

On other hand – Spotify, Netflix, Hulu and many other products and startups are riding the Facebook Open Graph / Social Graph to increase social engagement and usage. While Google is missing the opportunity by not leveraging Facebook’s reach for its own products like YouTube, Google News and similar.

Social is not in Google’s DNA.

 

4. Continued Fascination with Google+

The rule to build successful products is – “Build quickly, learn, build, deploy. Doesn’t work, discard. Start again.” Google taught us this rule; and is now breaking it again and again.

Google should rather focus on building Google+, showing users the value proposition in this platform. Instead it is doing its biggest mistake – forcefully including Google+ in its other products. And in this process killing the user experience and usability of its successful products.

  • Search:  Introduced Google+ profiles of users who shared respective URL in search results.
  • Adwords:  Introduced the +1 button to Adwords display advts.
  • YouTube: Introduced videos shared by Google+ users on YouTube homepage.
  • Gmail: Introduced notifications on Google+ updates on Gmail header toolbar.
  • Google Reader: Introduced sharing options, adding users to Circles from Google Reader.

In any of the above products, Google+ additions are not enabling any core-feature of the main product. These would have been great things to do if Google+ had proved its own value to users. Google is simply leveraging successful products to promote Google+.

Didn’t Yahoo try his before – everything Yahoo. I didn’t work earlier, it will not work now.

 

5. Fixing whats not broken

Google wants to act fast and speed up its innovation. While doing this, it is actually fixing whats not broken.

Gmail –

  • The new design update Google is planning to push to all its users – is uncalled for. The functional updates are great thing to do, but the changes to its look are at the expense of product usability and could have been avoided.
  • Google announced launch of a very buggy version of its Gmail client for iOS; and recalled the same from app stores within hours.
  • Stops support for native Blackberry App. While Blackberry itself is on a decline, it still has a significant 19.7% share in US smartphone market and continues to grow in countries like India.

Search –

  • Started with its Caffeine roll-out in June 2010 to include fresh content.
  • In Nov 2011 – it pushed another big roll-out that impacts 35% of search queries.
  • Labnol discovered that Google is now indexing Facebook comments.

In search of freshness, Google is playing too much with its core search product. As mentioned earlier in this post, Real-Time search needs to be a different product.

Google Maps –

  • Announced pricing for Maps API High-volume usage.
  • Location is a key to future product innovation on top of Maps. This move is likely to affect a lot of startups innovating on top of Google Maps.

YouTube –

  • Homepage displays videos from People you follow on Google+

Google is also implementing design standardizations across all products – Search, Gmail, Reader, News, Books and more others. Google is killing uniqueness of its products by standardizing its look and feel and continuing with its fascination of Google+.

 

6. Siri

It may not be easy for anyone to dismiss Siri as a feature on iPhone 4S. Siri is not just voice recognition; it is another input methodology. Siri’s natural language interaction is far more superior than the syntax driven VA (Voice Actions for Android). VA is anywhere between 1-2 years behind Siri. That is a (HUGE) advantage Apple holds.

As the technology improves, one can start talking to Siri as –

  • “Siri, search for ‘MP3 Player’, take me to the best result!”
  • “Siri, show me the map of Mumbai.”
  • “Siri, who is offering the lowest flight ticket from Mumbai to London.”

There are infinite possibilities what Siri can develop into quickly. Most importantly – the potential it holds can make many Google products and services around it irrelevant, like –

  • Search – Ability to discover new websites and relevant services without using Google Search.
  • Adwords – Google relies on clicks for monetization. Siri means no clicks, just talking.
  • Maps – No longer view maps while driving, Siri will look up to them and speak out the directions.
  • SEO – What happens to the SEO ecosystem around Search? Will the new optimization be SVO (Siri Voice Optimization)? How will it work?

Google mastered the standard text-input methodology on Internet (Computers + Mobile). But the threat from Siri is Real. Of all challenges Google faces, Siri is the biggest. The last known big transition for input methodology was finger-based touch inputs (introduced with iPhone). In last couple of years, it replaced traditional keypads on all smartphones.

Siri should be a big bouncer to folks at Google; caught them off-guard and completely unprepared.

 

7. Android v/s iOS

Google scores a big thumbs up with Android capturing 43% of US smartphone market. Apple lost opportunity in developing countries due to its high-priced iPhones while Android phones & tablets flooded the markets with price points from $75 to $1000.

In my own view – I find Google strategy to enter smartphone market extremely fascinating. Samsung, Motorola, HTC, LG and many others were excellent hardware manufacturers with poor software / applications / user experience capabilities compared with Apple or even Nokia. Google gave what these partners lacked – an mobile operating system and ecosystem of applications.

Distribution of Android phones provided Google the opportunity to monetize the mobile search queries. Current trends in mobile are slightly more inclined towards building Apps & HTML5 websites, most developers and product companies want to ensure a seamless experience on phone and also presence with a native client. Google also aligning itself by directing mobile publishers to Adsense and enabling AdMob for Mobile applications.

Google acquired Motorola Mobility to debut itself as an Software+Hardware play (like Apple?). But it may have limited or no advantage with its own hardware play (through Motorola) as it will face tough questions from global Android partners like Samsung, HTC, Sony, LG and others who are responsible for large distribution of Android OS and its popularity. For now, the Apple dream may look difficult.

There are also few more challenges facing the Android ecosystem –

  • Apple still largest and extremely focused contender with its one-phone market strategy for iPhone
  • Android being open; Consumers have a huge choice for Android phones from $75 to $750.
  • Only differentiation between Android phones are hardware capabilities; hardware edge is tough to maintain.
  • Brands like Samsung, HTC, others will require to have devices at all price-points to ensure growing market share. Only significantly high volumes will bring profits.
  • Tough competition on price from Chinese and low-cost android phone manufacturers.

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8. Monetization

2004: Google’s largest contributor to its Revenue: Adwords
2011: Google’s largest contributor to its Revenue: Adwords

In 2004, Advertising was only large scalable online monetization model. In the quarter Google debuted on Nasdaq; Amazon reported profit of just $54 Mn.

In 2011, there are various scalable monetization models:

  • Online Advertising / Search & Display (Google)
  • Online Advertising / Social (Facebook, LinkedIn & similar)
  • Mobile Advertising (Google, InMobi & others)
  • Local Advertising (Groupon, Foursquare & similar)
  • eCommerce (Amazon & others)
  • Enterprise, CRM (Salesforce, Box.net & others)
  • App Stores (Apple)
  • SaaS Products (Dropbox, Evernote, others)
  • Payments (PayPal, Square, others)
  • Smart Computing Devices / Tablets, Kindle, Smartphones (Apple, Amazon, others)

Multiple scalable monetization models evolved over last few years. Google unfortunately has not moved beyond Adwords.

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9. Lack of Innovation

Over years, Google is struggling with innovation. Many existing and high potential products are on decline.

  • Blogger: Introduced the world to blogging. Lost battle to WordPress, Tumblr, Posterous.
  • Google Books: eBooks store of the World? eBook for Android phones?
  • Google Docs: Never really went beyond Gmail attachments. Evernote? Box.net?
  • Google News: News recommendation service or aggregation. Pulse?
  • Google Apps: Endless opportunities in Enterprise services.

Google also abandoned or mis-managed on some the big ideas –

  • Chromebook:
    Post launch announcements, not much has been heard about Chromebook project. If Chromebooks were built to optimize over web, why did it not follow the Android platform? Ideally it should have built and optimized version of Android for laptops & tablets (Android 3.1 Honeycomb for tablets came much later).
  • Orkut:
    Google never realized the potential of Social until too late. Orkut which could have been the default Social Networking destination for world, never innovated beyond UI changes and probably never got the resources that it deserved.
  • GDrive:
    Google was to launch an online drive for storage back in 2007; much ahead of Dropbox’s launch. The project was abandoned and Google is reportedly working on its revival once again post Dropbox’s success.

Over years multiple products have evolved that Google has not paid attention to. Some of the hottest startups and businesses today are in product domains like – Multiple SaaS domains, Social Commerce, Social Products, Local Businesses and so on.

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10. Failure to execute Acquisitions

If you can’t build it, acquire it. Google has done some awesome job with many of its acquisitions, but unfortunately not the ones in Social. The big lost opportunities here are Aardvark, Dodgeball and Jaiku.

  • Jaiku:
    An micro-blogging service that launched well before Twitter and acquired by Google in Oct 2007 had the potential to be Twitter or a tough competition. Twitter today has over 380+ Mn users and valued at an estimated $8 Bn.
  • Aardvark:
    An social QnA service created before Quora was acquired by Google for $50Mn in Feb 2010 had enough time to learn and innovate. Google announced its closure in Sept 2011. Lost opportunity – Quora is now valued at over $1 Bn.
  • Dodgeball:
    One of the earliest location based social products for mobile was acquired by Google in 2005 and discontinued in 2009. Dodgeball’s founder Dennis Crowley launched Foursquare which is one of the hottest location based products today with over 10 Million users.

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Ending Notes

Design standardizations that kill identity of products. Inability to build competitive products and match speed of innovation. Failed attempts at Social Networking. Fascination to promote / push Google+ through its successful products. Failed acquisitions.

Google is currently showing all signs of being the next Yahoo. At this pace, engineers will sense more challenges and opportunities to innovate outside of Google. Its not too late, but yes – Google is in its mid-life crisis.

Concluding Notes for myself and other startups – “Don’t try to do something in everything. Rather focus on doing everything in something.”

Why Consumer Social Products should monetize at Scale

This post is written in context of – why consumer social products should never monetize without scale.

1. Because Users sign-up in context of Product –
Every social product is more about users and their connections / contacts together with a context (its product use-case). Users expect to interact with their contacts with this context.

For Zynga, the context is playing games; for Quora, the context is asking questions. At this stage – nothing is more important that making the context important. Focus on building the product.

 

2. Because Engagement is more Important –
Only value a social product should provide to users is engagement (both frequency and quality is important). Hence, the only metric that matters for any social products is engagement. That should be prime focus for any social product in its initial 24-36 months.

Over a period of time this engagement should evolve in to habit. Habits are tough to break. Facebooking, Tweeting, Checking-In are habits.

A QnA site like Quora with about 1 Mn ‘engaged’ users is more valuable that 50Mn+ users on Google+ who don’t talk to each other..

 

3. Because you need to Learn from Others’ Mistakes –
Learn from successes and failures of other products. All (successful) social products monetized at scale, till then they were just building the product and even continue to do so today.

Majority (if not all) of social products who tried to monetize early have hit the dead pool or pivoted.

Don’t want to name any specific failures, but look around – there are many social products that attempted to monetize in its early days.

 

4. Because your Users won’t like it –
You like it or not – large social products & platforms eventually monetize with advertising products but with its own product context. Facebook did with advts targeting by demographics; Twitter with promoted accounts, tweets & trends; Foursquare by local advertising deals for check-ins; with a exception of Zynga that sells virtual goods.

At early stage, users would expect a better product experience; not advts. If you plan to monetize with transactional services like eCommerce – think about it. Will users want another service that spams them through sms / email or advertisements? You don’t want to put off your users.

It is a tough decision with a simple answer – Focus on what users want; not what you want or what your investors want.

 

5. Because your Merchants or Business Owners won’t be happy with you –  

This is strange but true. Let me explain this with example – Imagine a hypothetical social product for shopping with 100,000 registered users. You sign-up with the top-20 eCommerce sites in India for monetization through affiliate model – you pat your back and give yourself a thumbs-up.

– Assume decent engagement levels @ 50% user base (50% of users login minimum 2 times a month).
– That is 12,500 users per week logins
– Take standard 1% ratio of conversion at merchant end
– Gives you 125 transactions per week; 500 per month
– That is about 25 transactions per merchant ~ approximately less than 1 transaction per day for eCommerce partner.

Consumers will not do eCommerce transactions every month. Next month, this picture might be more difficult.

4 of these 20 eCommerce services says, “Sorry! its not worth our efforts on integration and time spent. Please delist us.” Community is small, people change jobs fast and the word spreads quickly amongst the partners – “This product does not work!”

Now, the same scenario at scale;

– On a 1Mn user base: 8-10 transactions per day to every partner
– On a 10Mn user base: 80-100 transactions per day to every partner
– On a 100Mn user base: 800-1000 transactions per day to every partner. OMG!

Exercise extreme caution when you decide to monetize your social product. The timing is as important as how your monetization plan.

 

Also because Sean Parker said so –
From the movie – The Social Network. When Mark Zuckerberg, Sean Parker and Eduardo Saverin discussed on TheFacebook’s monetization in its early days –

Eduardo Saverin: Hey, you know what? Settle and argument for us. I say it’s time to start making money from TheFacebook, but Mark doesn’t want to advertise. Who’s right?
Sean Parker: Um…neither of you yet. TheFacebook is cool that’s what it’s got going for it.
Mark Zuckerberg: Yeah.
Eduardo Saverin: You don’t want to ruin it with ads because ads aren’t cool.
Mark Zuckerberg: Exactly.

Sean Parker: “You don’t even know what the thing is yet.”
Mark Zuckerberg: “I said that exactly.”
Sean Parker: “How big it can get, how far it can go. This is no time to take your chips down. A million dollars isn’t cool. You know what’s cool?”
Eduardo Saverin: “You?
“A billion dollars.”
 That shut everybody up.

This holds true for every social product. You don’t know really know how a product shapes up it its journey that starts from minimum viable product.

Note: Sean Parker has said that the movie The Social Network is work of fiction.

 

Google+ may be miles away from being a great Social Product!

A Product Manager’s view – Why Google+ may be miles away from being a great Social Product!

There are various reports on super adoption of Google+, earlier about 10 Mn users and today it reaching 50 Mn users.  The key question is – How many users are engaged there? Also echoed by The Lean Startup author Eric Ries while Facebook has 750Mn active and engaged users.

I am trying to tell myself that first signs of product usage and assumptions change over time. It happened with me for Groupon where the business model was innovative, but not scalable; for Quora post initial adoption; for Twitter (where I was a early adopter) but found no one else there and stayed away for 2-3 years before becoming active again.

Same happened with Google+ my first reaction was Facebook killer, then next was Twitter killer – and over a period of time with my Product Manager’s hat – I feel that it may be miles away from being a great Social Attempt!

 

1. What is Google+? No one cared to answer!

A standard product management and product marketing practice is to tell consumers what the product is. The world knows about Facebook, despite its 750Mn+ active users – every time you visit Facebook homepage it tells you what it is.

  • Facebook – Facebook helps you connect and share with the people in your life.
  • Twitter – Follow your interests. Instant updates from your friends, industry experts, favorite celebrities, and what’s happening around the world.
  • Flickr – Share your life in photos.
  • YouTube – Join the largest worldwide video-sharing community!
  • Foursquare – Check in. Find your Friends. Unlock your City.
  • Quora – A continually improving collection of questions and answers.

While for Google+ – No one cared to answer what product use-case it solves or what should users are expected to do on it.

 

2. How does a user access Google+ ?

Users access Facebook on www.facebook.com; Twitter on www.twitter.com; and so on – is it www.google+.com?

And to prove this point – look at Google+ suggestions on Search –

Accessibility is a big question mark for Google+. The correct way to access Google+ is plus.google.com – which a technology early adopter shall ‘probably’ remember – but even he or she will end up accessing (most of the time) Google+ from within GMail on the notification bar at the top.

This point is also related with next set of arguments – User Psychology & Naming & Identification Psychology. I feel these factors are extremely important to consider while building any consumer product.

 

3. User Psychology for Consumer Products

For any Internet or mobile product – consumers are quick to label it with its strongest product use-case – which is typically the recall product value of the user. Simply stated for a normal user –

  • “I visit GMail to check my emails!”
  • “I visit Google to search the web.”
  • “I visit Facebook to view what my friends are up to.”

Now it is extremely difficult for any product to have a “and use-case” for a product –

  • “I visit GMail to check my emails and Social Networking.” – No!
  • “I visit Google to search the web and Social Networking.” – No!
  • “I visit Facebook to view what my friends are up to and also searching the world wide web.” – No!

“And use-case” works for features that support any product’s core value. Features that would be to better manage emails (for Gmail), to better display search rankings (for Google Search), to show more types of friend’s activities (for Facebook) and so on.

Google is aiming to take on Facebook with a Social Networking product. But launched it like a feature on Google Homepage (Search) & Gmail (Notification Header). In current avatar, Google+ is a feature – and will gain traction as much as a feature can. It will not gain identity as a social-networking stand-alone product.

Also note the big failures of other “And use-cases” –

  • “I visit Facebook to view what my friends are up to and also Buy Local Deals.” – Deals was abandoned by Facebook
  • “I visit Facebook to view what my friends are up to and also to check-in in places” – Places as stand-alone attempt within Facebook failed, but as feature is gaining traction.
  • “I visit Gmail to check mails and Buzz up articles.” – Google Buzz… remember?

“And use-cases” work for B2B products, but have never worked for any consumer web product.

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4. Naming & Identification Psychology

Social Graphs & Social Networks are all about giving identity to users. Currently, Google+ itself needs an identity. Users think and will continue to think of Search when they think of Google, and it is virtually impossible for them to perceive Google as a Social Network.

How consumers relate with social activities – “Are you on FB?” “Can you tweet this?” “Let me share it on FB” and so on. The terminology “Google” or “Googled” is built over last 13 years – will be impossible to change from search to a social context.

For sake of Product identity or for its different product use-case, Google+ should have been outside of Google identity with its own identity (probably a www.plus.com if it was available). But the lure of exploring existing user-base is too difficult to give away – and if that logic was to succeed Yahoo! would have still been the largest internet company in this world. They tried to do everything under Yahoo! brand name (Yahoo! Search, Yahoo! Shopping, Yahoo! Finance, Yahoo! Hotjobs, Yahoo! This & Yahoo! That), but for consumers Yahoo! was and always remained a content play.

Even Google’s largely successful consumer products outside Search – Gmail & YouTube were successful because consumers saw it as an independent product identity outside the core of Google’s Search. While Google Video, Google Buzz, Google Answers – all failed. I am strong advocate of one-product = one-identity for consumer web businesses.

 

5. Social Graphs are occupied; No place for Google+ to fit in

I mentioned in my previous post Building Awesome Social Products – successful social products are reflection of people’s offline behavior in the real world. Similarly – successful social graphs are also reflection of people’s social relationships in real world. Social Products reflect activities, Social Graphs reflect relationships.

A typical user’s social relationships involve –

  • Close Relationships – Friends, Family, Friendly Colleagues (present and past) – more importantly people you know personally.
  • Professional Relationships – Colleagues, Business Relationships, Partners
  • Loose Relationships – People you know, but they probably don’t know you. Celebrities, known professionals, domain experts

Facebook covers Close Relationships, LinkedIn covers Professional Relationships, Twitter covers Loose Relationships. So if Google+ is trying to create a new Social Graph, it will be a struggle (big struggle) – simply cause there is no use-case for a new social graph. Social graphs are distinct; by nature, by user behavior and are established over a period of time.

Features don’t make a product success by itself and expect it to later evolve in to a Social Graph; Instead having a use-case for social graph is essential and the features should evolve.

6. It is important to know whom to kill – Facebook, Blogs, Twitter, or what -?

Google+ though it presently looks like a Facebook killer – it is not. None of my friends are using it the way they use Facebook, instead I see more updates from technology adopters in Silicon Valley – and the posts look like extended tweets (beyond the 140 characters). I follow these technology adopters on Twitter, and hence my own assumption that probably it is a Twitter-killer.

Google+ still does not have a clear proposition – and is trying to overlap between all three Social Graphs (Close Relationships, Professional Relationships & Loose Relationships) without taking a clear positioning against one of them.

I am personally not happy with the killer-suffix (no products killers have ever killed anyone – they are still trying to kill iPhone & iPad). But its also important to know who your competition or what your benchmark really is. Or you might just try running behind all, but never able to catch up with any one of them.

7. Developer APIs will not enable Social Graphs; Instead Gmail invite contacts are more powerful.

There has been lot of noise about speculated Google+ APIs for developers to build applications and its release dates or so on. Developer APIs will provide access to features – posting an Google+ update, ability to do +1 through applications, and so on – but this sounds (unfortunately once again) like Twitter APIs or FB app APIs that allow you to post status updates and share pictures and so on. Most importantly, Google+ will not be able to build a Facebook Connect equivalent.

Today Social Graphs when referred are mostly Facebook explored through Facebook Connect (unless you write some algorithms on top of them to bring context to your product). F-Connect allows applications & developers to enable Social Graphs (of friends); which clearly explains why 1000s of applications prefer to have Sign-up with Facebook buttons.

Google+ has multiple circles (friends, acquaintances, doctors, techies – and you can delete and rename any other circle); relationships in these circle are mutually not dependent on each other – and hence cannot be explored even if Google+ comes out with a API to access them. Let me explain this below –

a. A user Larry might add another user Zuck in friends circle; Zuck may add Larry in My Gang circle. Hence social relationship between them is not mutual (as friends).
b. Further Larry might name his friends circle as Buddies; Zuck names his friends circles as Pals; Hence the social graph definition itself is flawed.


This is a huge flaw – Through APIs the developer’s applications cannot reach mutually accepted graph of both connections (mutual friends) or an validated status of their relationships (close friends, professional or loose). Hence at this stage it would be more preferred to use the Gmail Invite Contacts module – for simple reason that it is more powerful and treats all contacts at a same level (a social graph of email contacts / connections).

 

8. Not the best attempt at Social Networking

Google already knows so much about its users – whom do you chat (on GTalk), whom do you mail (on Gmail) or who are my most contacted people in real world (on Android). Google could have actually used a lot of this data, recommended people with circles (I still hate sorting people in circle all the time, but pre-cooked circles by associations would still have been so much better).

With Google holding so much data and wanting to go ahead with a strong social product; it is expecting users to do it again from scratch. Makes one feel that Google+ is a half-baked attempt.

Facebook users usually have about 150 to even 5000 friends. Usually added over years, and all added at a same level – ‘Friends’. However cool the task of adding people to circle is in execution – to add those many people again to circles is a pain. While most people that users see on Google+ are those who are discovered through the people you follow. Every time to add someone to a circle is little more effort than just adding as a friend (on Facebook) or just following the user (on Twitter).

Circle looks like Twitter lists – People get added on them once, later everyone forgets which user is put in what circle. And while the News feed (or stream) stays common for all – the Circles might as well be forgotten just like Twitter Lists.

The next point makes it more clear – why it is not the best attempt at Social Networking.

 

9. Real Capabilities of Social Graphs (or Networks) are absent –

Get this right – Friends (or Connections!) are the minimum one expects out of a Social Network. What stands out are the capabilities to engage those connections. Remember Orkut? – it had all connections; but Facebook just made the engagement so much better.

  • Ability to discover Friends or Connections in context –
    Google+ has done a simple job or fetching contact list from GMail and enabled it with the painful process (yes!) of adding to circles. But by enabling discovery of friends or connections who are active on Google+ – the suggestion engine for friends could have been so much better.
    .
    Example –
    1. I end of following lot of product enthusiasts & early adopters. There are mutual connections that could be added to my circles – which currently not recommended.
    2. My Gmail contacts list have endless email addresses of people I really don’t want to follow in circles or on any social network. So a smart recommendation based on whom I chat with, mutual friends, top contacts on Android and others need to be made discoverable.
    .
  • Stream or Newsfeed –
    The most important discovery tool on any Social Platform is Newsfeed. In its current stage – the Stream on Google+ is very Twitterish – a timeline of all people you follow.

    Facebook raised the standard with algorithms that help you discover feeds that is most relevant to every user, ranking every story contextually around a user. Newsfeed makes or breaks any Social Product and single most important activity & engagement enabler for any Social Product or Social Graph.
    .
  • Communication or Chat –
    The most cut-copy-paste feature of Google+ is chat – where user can chat with contacts he otherwise can also on Gmail or Gtalk. Quite honestly, this is the most ridiculous feature, with no context to people any user has put in his circles.
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    In context of chat (or video chat) – expecting users to do Hangouts with webcam is a big No. Hangouts are not conversation starters, but should be featured alongside as planned video conversations.
    .
  • Ability to drive Traffic –
    Remember Google Buzz? There was nothing wrong in the idea – attempting a Digg or Facebook Share or Tweet Share. Once a user Buzz’ed an article – it was critical to reach his Social Graph and drive viral traffic to that article. This story failed cause of poor dissemination of activity in user Social Graph. Google should learn lessons from Google Buzz chapter.
    .
    Social Networks like Facebook & Twitter are popular with publishers or businesses due to their ability to drive traffic to their own websites. While few publishers have added the +1 button to their webpages – still drives only an insignificant proportion of traffic to them; and lot of unclarity on how the dynamics of +1 button works for publishers and its benefits to them eventually.+1, Like, Share, Tweet this – are big distribution mechanisms for a Social Network. Should be given its required TLC.

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As mentioned earlier – the product use-case should be driven by features; and not the other way round. Google can always come back and say – we are working on this. But hey, if a product is coming from a product & technology resource-heavy company like Google – even user expectations also very high.

Even these are early days for Google+, web is dynamic and consumer interests change quickly and Google can still do lots of changes quickly and innovate, possibly even work on the above arguments if they agree with it.

This post is written over last several days with some last minute additions on stats before hitting the publish button. Meanwhile Facebook has launched a series of new features, which looks like they are (over)reacting to Google+. Facebook, you are miles ahead, don’t make mistakes, please.

 

Building Awesome Social Products

Number of Social Products are launched these days; everyday we come across a new one. While I am also busy building my own Social Product – sharing few of our learnings with other Entrepreneurs & Product Managers working on Social Products.

Social Graphs are all around us today – some like Facebook, LinkedIn, Twitter have extremely high adoption rate and have provisioned development frameworks for existing and new products to leverage social graphs behind them. Each of these social graphs are distinctive by type of connections and mindset its users have developed towards them.

Google+ has been left outside of this discussion – cause in my personal opinion it is yet to find itself a distinct social graph. In current position – Google+ overlaps with lot of existing and established Social Graphs. More notes on Google+ can be reserved for a different blog post.

 

Existing Social Graphs (everyone knows this):

  • Facebook – Social Networking for friends, (close) colleagues and family. These are users with whom you have interacted in real life.
  • Twitter – Loose social connections, people you know or are acquaintances with. Typically people who are celebrities, known professionals, subject or domain expertise are followed by others.
  • LinkedIn – Professional and Business contacts.
  • Email Contacts – Gmail, Yahoo, Hotmail, AOL, etc – all people or contacts whom you have/had private conversations over emails.

There are other Social Graphs like – YouTube, WordPress, Flickr.., those who are limited by its mindset or domain; also limited ways to leverage those social graphs.

 

Every Social Platform has Social Mindsets & Product Norms:

Social Platforms – no matter how big in user base, its users over a period of time have developed strong mindsets, product usage norms and social norms. They are usually not said or stated, but followed subconsciously by its users.

  • Facebook –
    Product Norm: Users can share status, comments, updates, photos, videos with “known friends”
    Social Mindset: Informal, between friends, perceived closed group communication.
    Social Norm: Example – Do not keep on updating status at same pace at which they tweet.
    .
  • Twitter –
    Product Norm: Follow like minded people, domain experts, known professionals, celebs, etc
    Social Mindset: Open conversations & thoughts expected by followers.
    Social Norm: Example – Retweet what you agree on, etc
    .
  • LinkedIn –
    Product Norm: Strictly Professional & Business oriented. Make connection with people you have worked with or intend to.
    Social Mindset: Share professional or company updates; Industry news & views
    Social Norm: Example – Do not post jokes or Facebook-like status updates.

 

Social Mindsets and Product Norms are difficult to break:

Users follow social mindsets and product norms subconsciously, they learn to follow it over months or years of product usage. Over a period of time, they become so strong that such platforms itself are not able to foster adoption for new products & features they introduce. Some examples are –

  • Facebook attempted to take on Foursquare with Facebook Places – but did not make much headway. Interestingly – there might be an 100% overlap of Foursquare users with Facebook.
  • Twitter struggled with getting usability for Lists feature. Users have added people to lists – but not following them for tweets. Twitter acquiring TweetDeck might be another sign of product usage norm.
  • LinkedIn struggled with its product LinkedIn Answers – while Quora scaled.
  • Google launched Google+ through GMail, but now struggles to keep continued engagement and adoption of Google+.

Because the Social Mindsets and Product Norms are difficult to break, products that leverage Social Graphs outside them become successful. (Facebook abandoned deals, but maybe it should acquire Foursquare as it is more valuable than Groupon, & LinkedIn should acquire Quora)

 

Some Perfect Examples of Social Products:

  1. Zynga – Leveraged social graph of Facebook and introduced Social Games like CityVille, FarmVille and others as a Social Application.
  2. Foursquare – Leveraged social graphs of Facebook & Twitter to introduce a location based check-in product on Mobile.
  3. Quora – Leverage social graphs of Facebook & Twitter to introduce a Questions product as a destination website.

 

The 6 Basic Principles of Building Social Products:

  1. Social Graphs are already Established.
    Do not reinvent the wheel and try to build social graphs again from scratch on your product.
    .  
  2. Social Graphs get built over a period of time.
    a. Over years – Users have made friends on Facebook, added professional contacts on LinkedIn or followed people on Twitter
    b. It will take loads of time, effort and patience if you try to build them again.
    Google+ is attempting this – we can wait and watch if it succeeds.
    .  
  3. Don’t build Social Products for sharing content & driving additional traffic.
    a. Most social products are built with this intention – sharing content and hence driving more traffic
    b. Existing social graphs are powerful and already allow sharing of content to drive viral traffic.
  4. Build Social Products that add value to users.
    There are many tasks and products that can be built outside existing Social Platforms which can add value to end users. While existing social graphs are established, users have a Usage Mindset about them, this is biggest incentive to build innovative social products.
  5. Don’t arbitrage value through your product.
    There is immense value in integrating directly with social platforms like Facebook & Twitter, do not try to arbitrage this value through your product. Users (if it is a B2C product) or Merchants / Publishers (if it is a B2B product) will at some point of time realize this and abandon your product to integrate/use directly.
    .
  6. Don’t build – but leverage Social Graphs!
    Rome was not built in one day! And so are Social Graphs. Choose the one that fits most with your product use case and leverage it.

 

Building your Perfect Social Product:

Foursquare, Quora, Zynga did it, so can your product. Introducing established social graphs to new products. Key is understanding what you manage and what you don’t – Social Graphs are not owned by you, your product is – seamless integration with your product makes it scale up virally.

It helps you in –

  • Viral User Acquisition
  • Introducing your product to user’s existing social graphs
  • User activity on your product generates updates for Social Graphs, which acts like contextual marketing.

Identify what are the validation use-cases for your product, allow consumers to share the same with his Social Graphs. Few examples are – Foursquare checkins, Questioning & Answers on Quora, reaching a level completion milestone on Zynga while playing its games and others.
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Solving the Chicken and Egg problem:

Social Products have more than one first users. Every initial user who registers to your product has his own social graph, he is the first user of his social graph.

The Chicken & Egg problem here is – what do you show to such first users who do not have any friends or activities to look at. Ask hard questions and look around for examples of successful social products.

First User Questions (FUQs) –

  • Facebook’s first user question – “Whom do I add as a Friend? Who will see my wall-post?”
  • Twitter’s first user question – “Who will read my tweet? Whom should I follow?”
  • Quora’s first user question – “Who will answer my question? How can I quickly get a answer for my question?”
  • Foursquare’s first user question – “Where should I check-in? Why should I check-in?
  • Zynga’s first user question – “Whom should I play CityVille with? How will my City grow?”

Try to figure out how these platform solved the first user question. There are multiple ways to do it, but idea is doing this right. The biggest challenge for any social product is solving the First User Questions – the approach and execution here makes or breaks your Social Product.

 

Validation Cycle of Social Products:

Defining Validation Cycle for your Social Product and reducing the time to validate it is the key goal for Product Managers. Validation cycles are reduced when you are at scale – thats a easy task cause at scale most of the things you do is just optimize based on data/feedbacks.

Take example of Quora – product validation cycle means getting answers from people with best knowledge about it. Since Quora has scale & adoption today – you will see few questions getting answered within minutes or hours of submission, while few take days to see first answer. But in its initial days – the validation cycle was not so short.

More crucial moments are in the first 10,000 users scenario. Have patience, learn from initial user feedback and pain-points; validation will be slow and takes time in initial days of adoption. Also to due slow adoption cycle in early days – the early adopters of any social product, don’t necessary get the best experience.

Example – My twitter profile (twitter.com/beingpractical) was created in Sept 2007; I had the First User Question syndrome. Same was the case with my profile on Facebook, LinkedIn or Orkut (Orkut showed me – “Bad, bad server. No donuts for you” 1000s of time).

 

Should it be an Application on Facebook or Destination site:

“Why is this not a application on Facebook?” is also a question you will hear from Investors. While there are different answers for this question when it comes from Investors, but for a product decision make your judgment based on –

  1. Your product idea or concept or product use case should deliver real value. The value should not equate to addition of features on Facebook.
  2. There are Social Graphs outside of Facebook that you want to explore.
  3. Facebook would want people to interact with people; not with applications.
  4. Product or Business use case qualifies to be a destination site outside of Facebook – like a Quora or Foursquare.

Remember again – Social Mindsets & Product Norms on Facebook are difficult to break. If your product requires to explore Social Graph and is outside the Social Norms of Facebook – it can be a destination!

 

The Key Questions to answer before getting started:

Have good answers to all of these questions before starting with build your Social Product –

  • The task your product is planning to solve – do people do it in real world socially?
    Social Products are reflections of user behavior in real world – People play games together, People want to hear answers from persons with best knowledge about it, and so on. If people don’t do such tasks in real world – they will not do it on a Social Product as well.
    .  
  • Is it a feature on Facebook or Twitter or any Social Platform?
    Feature products don’t last. Identify if your product can be a feature on Facebook or Twitter.
    .  
  • If B2C product – Is there a value to do this task outside of Facebook?
    Check and check again – Is your product idea meant to be a application or destination.
    .  
  • If B2B product – Is sharing and driving traffic to merchants / publishers the key aim?
    There is no harm if it is one of the propositions, but this should not be the key aim of your B2B product. Many social commerce products on top of Facebook project sharing & driving traffic as their core benefit. Marketers are smart, at some point of time they will self-integrate this on their Facebook pages.
    .

Always keep these things in Mind –

  1. People drive Social Platforms & Products. Not features!
    Features are how you want users to drive your product. But it is always people who drive it – make your features people-centric; not people feature-centric.
    .
  2. Engagement should be People to People
    People don’t login to Facebook everyday cause it is Facebook, it is cause there friends are there. Same will hold true for your Social Product.
  3. Don’t arbitrage on User Value
    Consumers & Businesses will eventually figure this out. So don’t do this in first place.
    .
  4. Don’t be Evil
    People love their Friends & Social Circle / Connections more than they love your product.
    Don’t mess with them. Don’t spam. Don’t be evil.

Happy Building your Social Product. Don’t forget to send me invites on pj(at)beingpractical.com.

 

The Biggest Innovations never solved any problem!

Being an entrepreneur is exciting. And one question you hear often is – “What is the consumer problem that you are trying to solve?

We try to reserve our weekend lunches for some awesome conversations over products, companies and where the world is heading in connected world. Last Saturday, Anupam Mittal (Founder & CEO of People Group, Entrepreneur behind Shaadi.com), my co-founder and myself discussed this over lunch – “Did Google or Facebook  solved any consumer problem?

Our interaction inspired me to write this post –

Solving a problem and creating a market are two different ways to look at any company or any product idea. Products or Companies that solve a problem are the Million dollar companies, while products or individuals who look at the industry from a radically different approach – are the most disruptive, innovative and create Billion dollar opportunities as they grow.

My conclusions were –
– The biggest innovations never solved any consumer problem
– The founders or entrepreneurs had a different approach to the industry
– In almost all cases, the entrepreneurs did not belong to the industry, had little or no experience in that industry.

Further thoughts are embedded in this SlideShare presentation –

Have a different approach. Think different!