Bringing like-minded people under one roof is always magical, especially when they are open to sharing honest stories and keen to learn from others. At Blume, we are committed to creating such forums where our portfolio leaders get to learn from each other and the larger ecosystem.
Keeping this in mind, Blume recently hosted a Product Meet-up in Gurgaon, inviting product leaders across Delhi NCR to attend and share key experiences and learnings from their product journeys. We had Ankur Sharma (Senior Director – Products, Goibibo.com) for a chat and Q&A session moderated by Dhruv Mathur, Co-founder, LBB.
The attendees included product heads and managers from Blume portfolio companies such as Milkbasket, Squad, E2E Networks, Cashify, and LBB. In addition, there were product heads from other startups such as ThisForThat, NearBuy and Squirrel. All in all a good healthy mix of B2B and B2C companies.
Here are some key insights from the chat session with Ankur Sharma.
1.Using consumer psychology in the B2C funnel.
Ankur shared how we can use elements of consumer psychology in constructing the B2C funnel and moving the customer along the funnel.
He shared Daniel Kahneman’s (2002 Nobel Prize winner in Economics) concept of System1 and System2 thinking. System1 is fast, instinctive and emotional thinking whereas System 2 is slower, more deliberative, and more logical. In a B2C consumer funnel, he suggests using System1 to spur actions from consumers, e.g., when a consumer see only two rooms left (while booking a hotel room), he feels the need to quickly book one. That’s the loss aversion bias kicking in because of System1.
System2 is typically seen when the consumer has to take a high priced decision like booking an international flight. To ensure that the customer doesn’t think and rethink the decision, at Goibibo.com they avoid showing fare prediction for international flights. He goes on to say if there is a conflict between System1 vs System2 the user will drop off. At every step of the funnel, your product needs to help consumers make a decision faster and that will only happen when their System1 is activated.
2. Product Pricing
Ankur shared that though at top & bottom of the funnel, Product Managers have started participating solving Marketing and CX challenges (example: referral programs, chat-bots), there are still not too many PMs solving pricing & selection problems inside the funnel, via product intervention. Product folks think pricing is somebody else’s problem but he thinks pricing is a funnel problem can be solved with PMs proactively inserting themselves into the problem statement of better pricing and selection for the customer. He felt eventually products with shallow P&L will move from discounting led experience to value led experience, purely focussed on price. Ankur shared that to learn about pricing & how to price your product better, one should learn how to read the P&L (Profit & Loss) statements or company financials, then learn about consumer psychology, and finally put them together to better price the product.
3. Decision-making matrix for Product Managers
Ankur stumbled upon this decision-making matrix (see below) a couple of years back and feels it can be used by product managers to be more productive.
He shared that product managers should spend considerably more time on consequential and irreversible decisions. In the case of reversible and consequential decisions, he felt these are the perfect areas to run experiments and gather information.
The insightful discussion was followed by the attendees mingling and interacting amongst each other for over an hour. At Blume, we want to continuously engage with the ecosystem and make it a part of our core culture. We will be having similar events for Tech leaders and other verticals very soon across Gurgaon / Delhi, Bangalore and Mumbai. Follow @blumeventures on twitter to know about these events.