Finding patterns in the success (and failures) of digital consumer products
It was not long ago when my simple wristwatch was just a humble time-keeper. It has since evolved into this sophisticated digital companion that goes much beyond its famed, traditional role. It’s a testament to how far innovation has come, transforming a once-simple accessory into an essential part of the modern lifestyle. The remarkable rise of digital products that have permeated our lives is for all to be seen. Yet, in this digital abundance, there are both shining stars and forgotten failures. Some digital products have soared great heights, redefined habits and transformed categories, while others have faltered, unable to bridge the gap between the physical and the virtual.
What separates the thriving digital products from the rest? Are there hidden patterns that unlock the path to triumph? In this article, I look to unravel mysteries and identify patterns that underlie the successes and failures of digital products.
Consumer companies have undergone a significant shift towards digital products in response to the changing landscape of consumer preferences and technological advancements. While letting companies fulfil the growing demand for digital consumption, convenience, personalization, and seamless experiences, this transformation allows them to leverage technology, connectivity, and data to enhance consumer engagement, expand market reach, and drive innovation, ultimately reshaping the way products are designed, produced and consumed.
Several consumer product companies have successfully ventured into the digital realm, leveraging technology and embracing innovation. For instance. Nike waltzed into the digital space with its Nike Training Club app and the Nike Run Club app. These digital products provide personalized fitness training programs, workout tracking, and community engagement, enhancing the overall fitness experience for consumers. Nestle has integrated digital technology into its coffee experience with the Nespresso system. By using algorithm-rich technology to create a variety of ‘conversation marketing experiences’, from asking a smart speaker to trace your coffee order to telling a barista-like chatbot that you’d like a no-foam, fat-free, extra hot latte, Nestle is on a mission to win new consumers. Danone, known for its food and beverage products, has also ventured into the digital realm, launching initiatives to enhance consumer experience. Their baby formula ‘track & connect’ service allows parents to simply use their smartphones to see the journey their product has taken — providing transparency and traceability as well as confirming the authenticity of the products. It also launched a ‘my unique moments’ app as an all-in-one tool for parents to conveniently track their child’s well-being, early development, and precious little moments.
Nike, Nestlé, and Danone have chosen to address specific problems that deeply fulfill the needs of consumers. Nike focuses on empowering individuals in their fitness journeys. This addresses the inherent need for guidance, motivation, and a sense of belonging in the pursuit of personal well-being. Nestlé recognizes the significance of coffee as a daily ritual and source of comfort, offering an experience through Nespresso that fulfills the desires for personalized indulgence, convenience, and the joy of savoring high-quality coffee. This choice aligns with its commitment to enhancing everyday experiences and leveraging technology to elevate the coffee-drinking journey. Danone understands the profound needs and responsibilities of parents, providing digital solutions like baby formula tracking and parenting apps that address the deep-seated desires for transparency, convenience, and peace of mind in nurturing their child’s development. These products reflect Danone’s commitment to supporting consumers on their parenting journey and aligning with their values of safety and care.
Winning digital ideas come from deep insights about your target consumers. Ultimately, Nike, Nestlé, Danone, and more such brands that foray into digital, aim to forge emotional connects and create meaningful experiences that resonate with consumers on a profound level. Brands also carefully align their digital speedboats with their core competencies, values and positioning, enabling them to leverage their strengths, be genuine in purpose and differentiate.
User-centric design, seamless integration, and innovative features are recurring themes in the development of successful digital products across industries. One example of user-centric design can be seen with the Walt Disney World MagicBand. This wearable device combines the functionality of a ticket, room key, payment method, and FastPass reservation system into a single, user-friendly band. The MagicBand is designed with simplicity and convenience in mind, allowing park visitors to navigate the theme park seamlessly without the hassle of carrying multiple items and offers a personalized experience by enabling guests to customize their bands with names and their favourite characters, enhancing the connection with the Disney brand. Starbucks Rewards is a great example of seamless integration. With the Starbucks mobile app, consumers can earn and redeem rewards, order ahead, and make payments seamlessly. This in turn allows Starbucks to collect valuable insights, personalize offers and promotions. A unique example of innovation can be found in the Lego Ideas platform. Lego invites users to submit their own designs for Lego sets, which are then voted on by the community. The winning design often become new launches for Lego. By allowing users to co-create digitally, Lego not only taps into the creativity and passion of its consumers and fosters a sense of community, but also get’s a peek into the minds of its users.
Yet, its important to remind ourselves that purpose is the bedrock of digital adoption and success. Any appeal of user-centric design hinges on what we are trying to solve for in the first place. The market failure of Google Glass is a classic illustration of that. Its lack of a clear, compelling purpose for everyday users was one of the key factors that hindered widespread adoption. Consumers found it difficult to envision how Google Glass could fit seamlessly into their daily routines and fulfil and practical need. Eventually, the challenge of defining a value proposition beyond novelty and early appeal was too much to sustain. Another prominent example of a product without a compelling problem is that of Juicero — a connected juicing machine that aimed to deliver fresh, cold-pressed juices at home. The wifi connected juicer together with the QR coded packets promised to make it easier for users to consume fresh raw fruits and live their optimal health. But with a $700 price tag it was a product for the 1%, and not the 90% that truly need an affordable, healthy, and a convenient source of fruits and vegetables. Furthermore, Bloomberg news published a video proving that simply by hand squeezing the packets you could obtain a full glass of juice. In our quest to build beautiful digital products, it seems only pertinent to start with a critical examination of whether we are building a digital marvel to solve nothing.
The Amazon dash can be considered a mixed success. The original Amazon Dash was a physical button that allowed users to instantly reorder a specific product with a single press. The concept aimed to simplify the process of reordering frequently used household items. The dash buttons gained some popularity and were adopted by a number of users, but failed to become a household phenomenon. In 2019, Amazon discontinued the physical dash buttons and shifted the functionality to virtual dash buttons within the Amazon app and website. Its lack of success can be traced to its singular purpose of reordering specific products, as compared to the broader capabilities of the Amazon app or website. Users sought more comprehensive solutions and, moreover, did not perceive much benefit from the physicalness of the product when that functionality could be easily replicated through the Amazon app or website. The case of the Amazon dash serves as a compelling illustration of why solving problems for the consumer are important in equal measure as solving the problem of the consumer.
The success and failings of digital products unveils valuable patterns of the inner workings of consumer acceptance. A relentless focus on user-centric design is paramount. It is through understanding and solving for deep desires that successful digital products forge a connection and drive adoption. Yet, we must also learn from the cautionary tales of digital products that doomed. The case of dash underscores the importance of not only tackling the problem but also ensuring that the solution resonates with the broad consumer expectations and provides substantial value. One can’t talk enough about the need for digital differentiation. Winning products solve unique problems and address unmet needs, avoiding the trap of digital mimicry.
Are these patterns mere coincidences or are they a compass pointing towards the path of digital triumph? The verdict is still out.
(The views expressed in this article are solely those of the author and do not necessarily reflect the opinions or views of any organization or publication.)
