Episode 133: Uncovering Genuine Customer Interest with Benjamin Katz of Happy Head

Navigating the ever-shifting terrain of the business landscape can be daunting. Benjamin Katz, Chief Executive Officer at Happy Head, recently joined Nick Fredrick on the latest episode of his podcast, “Subscriptions: Scaled.” He shares his perspective on discerning genuine market needs, the nuances of feedback and the perennial dance between vision and market validation.

Navigating the Allure of Passion Project

While following one's passion seems tempting, Benjamin advises against building a business solely around personal interests. Drawing from his own experience, he highlights that passion-driven ventures, such as niche markets like skiing or off-road racing, can limit growth potential. Rather, he suggests considering big markets that offer extensive opportunities, even if the startup operates within a specific niche. By focusing on larger markets, tech CEOs increase the potential for building a scalable and self-sustaining business.

Revealing the Essence of Product Value

"Finding a real need that someone's actually willing to swipe their credit card for." - Benjamin Katz

In an age of innovation and rapid technological advancement, finding the core value of a product can be akin to finding a needle in a haystack. Benjamin emphasizes the importance of understanding what customers are truly willing to pay for.

Imagine dedicating time, resources and energy to developing a product, only to be met with silence upon launch. Benjamin warns of this very scenario, a risk that arises from placing too much trust in assumed demand.

In the business landscape, understanding the difference between what people say and what they do is paramount. It's about grounding decisions in evidence and genuine demand, ensuring that innovation aligns with real-world needs and desires.

Benjamin delves into the concept of stated intent. Many customers claim to love a product idea, urging entrepreneurs to build it. However, after investing considerable resources and time into its creation, many founders are met with silence.

The Pitfall of Stated Intent

There exists a subtle yet critical distinction between what consumers say they want (stated intent) and what they actually commit to (revealed intent). 

Benjamin warns of the danger of believing in surveys or focus groups too much. These methods have their place, but when it comes to revealing what customers truly want, they can sometimes lead entrepreneurs astray.  While these tools can provide insights, they often need to improve in predicting real-world behavior. For Benjamin, the only valid metric of consumer interest is when they're willing to invest in a product or service.

"Many say, 'I would love that product. You should totally build that.' And then you spend a year of your life building it... And then crickets." - Benjamin Katz

It's not what people say they want; it's what they're willing to invest in.

The Power of Revealed Intent

Revealed intent is where the real magic happens. This occurs when someone not just expresses interest, but takes tangible action, such as making a purchase. This is a crucial differentiation for tech CEOs. Understanding the difference between stated intent and revealed intent can be the dividing line between product success and product obscurity.

Dissecting the Paradox of Public Opinion

While public feedback can be valuable, Benjamin cautions against putting too much stock in it. He shares a sentiment many business leaders can relate to: not caring about the opinion of every random person on the street. This mindset stems from his belief that true innovation often goes beyond what people think they want.

This isn't to say entrepreneurs should disregard feedback. But Benjamin Katz firmly believes in distinguishing between the feedback that matters and the feedback that doesn't. He recommends focusing on one's core audience — the people who genuinely resonate with the product or service.

The Henry Ford Anecdote: Vision Beyond Demand

Benjamin references the famous quote often attributed to Henry Ford: 

"If I had asked people what they wanted, they would have said faster horses." 

If Ford had listened to everyone, he might have merely built a faster horse instead of revolutionizing transportation with the automobile.

This underscores the importance of vision in entrepreneurship. Innovators often see beyond the current demand, envisioning a product or service that reshapes the landscape.

Insights for Tech CEOs Building Startups

Benjamin Katz's insights provide valuable guidance for tech CEOs navigating the complex landscape of building successful startups. By focusing on customer validation, pursuing big markets and fostering collaboration within their teams, tech CEOs can position themselves for growth and scalability. 

Avoiding the allure of passion projects and being cautious of small markets can enhance their chances of building sustainable businesses. Ultimately, success in the tech industry lies in understanding customer needs, empowering teams and making strategic choices to maximize potential.

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Head to rebartechnology.com or email info@rebartechnology.com to schedule a call today.




#SaaS #Subscriptions #SubscriptionBusiness #SubscriptionService

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Episode 132: Leading Toy Sustainability with Catherine Bhattachar at Tiny Earth Toys