Ambient Growth

Traditional channels, such as email marketing and paid social ads, continue to decline in effectiveness. Users are increasingly turning a blind eye to tactics that are seen as an intrusion. Platforms also have an incentive to reduce the ‘noise’ on their networks.

Most companies think about customer centricity within the context of their product/service. Great companies take it a step further and apply this framework to their user acquisition strategy. Here are a few examples to demonstrate my point: 

Facebook: Facebook used an invite-only approach and focused exclusively on schools (starting with the Harvard campus). They didn’t place formal advertisements but rather focused on making Facebook the destination for news and conversations within micro-communities and social groups. By using an invite-only approach, Facebook successfully created a ‘FOMO’ effect and a large waiting list over time.

Lunchclub AI: This is a social network that seems to be taking a similar growth tactic to Facebook. By seeding their network with venture capitalists and founders, Lunchclub has built a large waiting list while also building a healthy network of like-minded individuals. Once you’re in the tool, the company allows users to only book meetings on Thursday and Friday to increase the likelihood of potential matches. This creates a positive flywheel experience that users are bound to share with relevant people in their network.  

Powerpoint: An internal product memo to build Powerpoint focused on adjacent use cases to core PC products (spreadsheets and word processors). From a growth perspective, this made it easier to eventually add users as Powerpoint became a logical tool to use. It also made Powerpoint an easy acquisition target for Microsoft in 1987 for $14M - three months after the product’s launch. 


Ambient Computing

Today, leading technology companies (Amazon, Facebook and Google) have built their growth strategy around the idea of ‘ambient computing.’ 

Ambient computing is when you use an internet-enabled device without consciously using it. A successful implementation of ambient computing requires a deep understanding of users and their environment. 

Luke Wroblewski, a world renowned designer, highlights 10 core characteristics when it comes to ambient computing. 

  • Invisible
  • Embedded
  • Familiar
  • Discreet & Discrete
  • Distributed
  • Modular
  • Symbiotic
  • Personal
  • Inclusive
  • Conservative

Case Study: Google's Ambient Computing Strategy

A review of Google’s latest product presentation shows us that ambient computing is at the center of its strategy. 


Source: Ben Thompson - Stratechery

Here’s a couple of quotes from their product leadership team to explain this further: 

"It all begins with our mission to organize the world’s information and make it universally accessible and useful. Today our mission feels as relevant as ever, but the way we approach it is constantly evolving. We are moving from a company that helps you find answers to a company that helps you get things done. This morning we’ll introduce you to many products built on a foundation of user trust and privacy…we want our products to work harder for you in the context of your job, your home, and your life. They all share a single goal: to be helpful, so we can be there for you big and small over the course of your day." 

"If you look across all of Google’s products, from Search to Maps, Gmail to Photos, our mission is to bring a more helpful Google for you. Creating tools that help you increase your knowledge, success, health, and happiness. Now when we apply that mission to hardware and services, it means creating products like…Pixel phones, wearables, laptops, and Nest devices for the home. Each one is thoughtfully and responsibly designed to help you day to day without intruding on your life."

Google’s latest product releases show how the company is looking to ‘help’ its users in key environments such as ‘the home’ and ‘on-the-go'. 

Home:

  • Stadia, the company’s video game streaming service, would launch on November 19th
  • New pricing for Nest Aware, the cloud recording service for Nest devices; instead of charging a fee per device Google will charge a flat fee per household. The new plans will launch in “early 2020”
  • Nest Wifi, a mashup of its Google Wifi mesh router with Google Home speakers, which will start shipping November 4
  • A new Nest Mini, a replacement for the Google Home Mini, which will start shipping on October 22

On-The-Go: 

  • Pixel Buds, the company’s AirPods competitor, which will ship in “Spring 2020”; there weren’t even working models for the press to try
  • Pixelbook Go, the company’s third Chromebook, which will start shipping October 28
  • The Pixel 4 smartphone, with radar chips, new cameras, and enhanced Google Assistant capabilities; it will start shipping on October 24


What Does Ambient Growth Mean?

Most companies don’t have the type of investment and execution resources that Google has. However, it’s certainly possible to create an ambient experience for users - especially at the point of acquisition. Instead of blasting a fairly generic message across a large group of prospects, I’d recommend taking a more nuanced approach that focuses on building tools/experiences that latch on to your core product or service. This vary based on the product, channel and message that you’re working with. Here are examples of tools/experiences that have been effective for me: 

Customized Guides: I’ve seen a lot of ‘customized guides’ used as a tactic to educate the market and build brand awareness. The most effective forms of these guides are the ones that target a very specific pain point and user group using a relevant channel. For example, Brilliant sends out customized look books to prospects (corporate managers) for office swag. By eliminating the step of having to visualize what their company’s swag could look like, Brilliant makes it easier to buy for corporate swag. 

Conference Experiences: When your user is already outside of their core environment and engaging with vendors at a conference, you have an opportunity to surprise and delight the user with unique experiences. A source of inspiration could come from carnivals, music festivals and other entertainment centers. There’s no reason why vendors can’t provide a low fidelity version of a carnival/festival experience for conference attendees. This could start with a spinner wheel or come in the form of a more elaborate scavenger hunt. 

Partnerships with Influencers: We’ve started to see the use of influencers become mainstream over the past 2-3 years (especially on social media). Before going down this route, it is important to understand your market and look into which influencers they would trust for specific decisions. Here’s an extreme example: Even though Bill Gates can be a huge influencer for people running a business, it’s unlikely that entrepreneurs would go to him for cooking tips. 

If you noticed, all three tactics above are designed to provide value to the user in a way that doesn’t intrude their current course of action or intent. As markets get more saturated, you will need to get more creative on the ‘ambient growth’ tactics you use. This requires a deep understanding of your users’ experience. 

A couple of resources that can help you upskill on user experience and interaction design are courses from the Interaction Design Foundation and the UX Starter Pack from Product Hunt. 


Key Takeaways

1) Sustainable growth comes from focusing on tactics that add value to the user - not intruding their experience on other platforms. 

2) The top technology companies today are going down the path of creating an ambient computing ecosystem.  

3) Today’s growth tactics should co-exist within the user’s workflow. This requires a deep understanding of the user's experience and the interaction with their environment. 


By

Suthen Siva

November 3, 2019