the 10x rule

Written by namnguyen24 | Published 2018/01/11
Tech Story Tags: entrepreneurship | the-10x-rule | cost-of-switching | customer-acquisition | marketing

TLDRvia the TL;DR App

We won’t be able to get a customer to switch over unless we’re 10x better than their current solution. The upside of switching has to justify the cost of switching. Even if the perceive monetary and cost in time to switch is small, there is also associated risk for the person who decides to pull the trigger on the switch. Customers won’t be able to recognize a difference of 30% improvment nor will they recognize an improvment of 2x. 10x cheaper with the promise of near identical performance will suffice.

We do not get to be 10x better than the incombent by doing what the incombent does. We go after a different customer set, we solve a valuable/apparent problem that the incombent is not able to solve.

Picking a valuable problem involves picking a problem that requires many cycles to creating a viable product. This makes having a head start, creating multiple iterations a defensiveble advantage.

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Published by HackerNoon on 2018/01/11