We track Product so you don't have to. Top Podcasts summarised, the latest AI tools, plus research and news in a 5 min digest.

Hey Product fans!

Welcome to this week’s 🌮 Product Tapas.

If you’ve been forwarded this or just fancy the best reading (and listening!) experience, check out the mobile app or web version, you can sign up and check previous editions here.

What’s cooking? 🧑‍🍳 🥓 

📰 Not Boring - Buckle up, it's been another eventful week. Elon Musk fires back at the EU over illegal content (with a meme obvs), while xAI’s latest Grok feature is making waves for all the wrong reasons. Instagram's testing a new Snap-Map-esque feature, but Turkey has blocked the platform for not complying with local laws. TikTok is looking to become a messaging powerhouse, and Google’s latest Made by Google event revealed a slew of new Pixel devices infused with AI (amongst a gazillion other things). We’ve also got updates from Apple, including rumours of a robotic home device, iPhone Air and changes to Apple Pay. Plus, some wild stories—like Disney dodging a lawsuit with a T&Cs loophole, and a successful test of a 621-mph maglev vacuum train and more.

⌚ Time-Saving Tools & GPTs - This week, we've got more game-changers for your workflow. From turning your text into engaging visuals to a personal newsletter tool that keeps all your saved content at your fingertips. Whether you're managing projects, optimising pipelines, or analysing online discussions, there's something here to boost your productivity.

🍔 Blog Bites - Essential Reads for Product Teams - Our featured reads this week dive into what Audible gets wrong about repeat purchases, the challenges of using 0-1 metrics, and a curated list of the 100 greatest business books.

🎙️ Pod Shots - Wrapping up the week, we’re spotlighting a 20VC podcast episode featuring Wise’s Nilan Peiris. He shares invaluable insights on the intersection of product marketing and growth, the pitfalls of relying too much on playbooks, and the importance of continuous experimentation. If you're looking to glean some growth hacks, this one’s for you.

Plenty to get stuck into - off we go! 🚀👇

📰 Not boring

• EU warns X over illegal content risks — Musk replies with Tropic Thunder insult meme

• And xAI’s latest Grok feature is exactly as chaotic as you might expect - you can make anything from Taylor Swift in lingerie to Kamala Harris with a gun

• Instagram is testing its own take on Snap Map

  • However, Turkey blocks access to Instagram for failure to comply with laws

• TikTok signposts its intent to take on messaging apps with the addition of group chats

• Universal Music and Meta Announce ‘Expanded Global Agreement’ for AI, Monetisation and More

• Flighty’s popular flight-tracking app can now predict delays using machine learning before airlines tell you

• Anthropic announced prompt cacheing (think of it as favourites for prompts over their API)

• Twitch introduces 60 second video stories - no doubt looking to help drive additional ad driven revenue options given their poor financial performance

• Telegram adds new ways for creators to earn money on its platform

• Made by Google 2024 - read about all of Google’s reveals here. TL;DR below

  • Google announces 4 new pixel phones and Gemini Live

  • The Pixel 9 line gets better cameras and a Gemini AI infusion

  • Wall street Journal Journalist says Gemini Live AI Sounds So Human, she Almost Forgot It Was a Bot

  • New AI-powered photo-editing tools, new Pixel watch 3, Pixel Buds pro 2, updates to Nest Thermostats, TV Streamer

• Whilst we’re on Google, their AI video creation tool is rolling out to more users

• And YouTube Music’s ‘personal radio’ mix launches allowing you to share your favourite songs with the world

• Apple news:

  • Tabletop robotic home device could launch as soon as 2026 costing from around $1,000

  • Digital wallets are being allowed into Apple Pay, and can even be the default (tap and pay USDC anyone?)

  • Rumours have surfaced of on an iPhone “air”

  • Longstanding pricing battle with Spotify is over after Apple finally relents

• Sonos is considering relaunching its old app after a mahoooosive unforced error when redesigning its app. Interestingly the CEO admitted his “push for speed backfired” 👀 

• Notion launches charts - take a 1st look and see what users think here

• YouTube's former chief Susan Wojcicki dies aged 56

• WILD: Disney says man can't sue over wife's death from consuming allergens because he agreed to Disney+ terms of service 🤯 

• 621-mph maglev vacuum train "T-Flight" test successful 🚀 

Want even more news?? View more here →

⌚️ Time-Saving Tools & GPTs

• Napkin: Get Visuals from your text to quickly and effectively share ideas

• Flat: super simple and clean project management tool

• definity: Observe, fix and optimise pipelines live without requiring code changes

• Recap: A personal newsletter of everything you’ve saved, created or captured recently, sent directly to you

• giga🧠: scan billions of discussions on reddit and other online communities to find the most useful posts and comments for you

• Resubscribe: Find out why your users aren't converting

• Spreadsite: Turn spreadsheets into interactive dashboards

🍔 Blog Bites - Essential Reads for Product Teams

Case Study: What Audible gets wrong about repeat purchases

Here’s another great case-study from Built for Mars

Mental Model: The Problem With 0-1 Metrics

In this short piece Tim Herbig argues that whilst it’s a powerful shift for product teams to use measurable changes in customer behaviour (i.e Outcomes) to prioritise work and measure progress, if that progress takes weeks or months to detect, these metrics may not be as helpful as they should be. So if that’s the case and there’s not much to check on a metric for 1, 2 or more months you need to also think about Output or Inputs to measure progress.

I’ve always been a fan of leading and lagging indicators in this sort of set-up, but feels that’s what he’s getting at.

Learn: 100 Greatest Business Books Database

Jaryd from “How They Grow” recently shared this excellent list of 100 Business Books curated by Bill Kerr.

It’s a superb source, with loads of my favourites (and a hell of a lot more) in there. You may need to sign up to the Open Source CEO newsletter to access, but that’s a great read in its own right anyway!

🎙️ Pod Shots

Today’s summary comes from a recent 20VC podcast with Nilan Peiris from Wise. Nilan and Harry discuss the concept of product marketing and the importance of delivering value to customers. Nilan shares his journey into the world of growth and product, highlighting the significance of looking at problems from a unique perspective. The conversation delves into the debate of using playbooks in product and growth strategies, emphasising the need for adaptable and reproducible models and more!

⚒️ What Growth Hacks Worked and What Did Not, for Wise

🎥Watch the full episode here

📆 Published: 2nd August, 2024

🕒 Estimated Reading Time: 2 minutes. Time saved: 50 minutes🔥

🚀 The Genesis of Growth: From Maths to Marketing

Nilan Peiris, Wise's CPO, has a background that many wouldn’t immediately connect with product growth: mathematics. But as he describes, the analytical mindset fostered by studying maths became a powerful tool in tackling product challenges from unique angles.

Takeaway: Approach problems with a fresh perspective. Sometimes, the best solutions come from looking at things differently than everyone else. This mindset can be a powerful growth hack in itself, enabling you to create solutions that outpace competitors.

📚 Playbooks: When to Use Them and When to Ditch Them

Playbooks are often seen as the golden rule in product development and marketing. But Nilan cautions against over-relying on them. In global markets, what works in one region might not translate to another due to cultural, regulatory, or financial differences.

Takeaway: Playbooks are useful for specific channels or content types, like Twitter or video marketing, but they are less effective as universal strategies. Use them as a guideline, but don’t be afraid to pivot or adapt when local nuances demand it.

🌐 The Early Days: Finding What Works

When Wise launched, its first customers trickled in from a TechCrunch article. However, acquiring users wasn’t a straightforward path. The team experimented with every channel available—from paid marketing to word-of-mouth strategies.

Takeaway: In the early stages of your product, experiment broadly and systematically. Track what works, but be prepared for a lot of trial and error. Growth isn’t linear; it’s a series of small, sometimes unpredictable wins.

🗣️ Leveraging Social Media: Amplifying Word of Mouth

Social media became a significant growth driver for Wise, particularly Facebook and later YouTube. Nilan highlights that the success of these channels lies in their ability to amplify word of mouth among users with similar needs—like international students or small business owners.

Takeaway: The best social media strategies amplify existing organic conversations. Target ads and content to users who are similar to your existing customer base. This alignment increases the likelihood of them sharing and advocating for your product.

📹 Content Strategy: On-Topic vs. Off-Topic

Wise’s content strategy focuses on creating “on-topic” content that directly serves user needs—like how to send money internationally. They also dive into “off-topic adjacent” content that’s still useful for their audience, helping them capture a broader user base.

Takeaway: Own your niche by becoming the go-to resource for your primary audience. Then, expand into adjacent areas that your users care about. This dual approach can establish your authority and draw in a wider audience.

📊 The Challenge of Above-the-Line Marketing

Wise struggled with above-the-line (ATL) marketing, such as TV ads, which didn’t yield the expected results. This type of brand advertising is challenging because it requires a broad appeal and often competes with well-funded competitors.

Takeaway: ATL marketing can be costly and hard to measure, making it less effective for niche products. Focus your efforts on more targeted, measurable channels unless your product has broad, mass-market appeal.

⚖️ Balancing Cost and Competition in Marketing

Nilan explains that Wise’s strategy revolves around reducing costs every quarter and passing those savings on to customers. This approach positions Wise as the lowest-cost provider in the market, a key factor in outpacing competitors who might cross-subsidise with other income streams.

Takeaway: A relentless focus on reducing costs while maintaining quality can give you a significant edge over competitors. This strategy is especially crucial in industries where price sensitivity is high.

🔄 The Importance of Continuous Experimentation

Despite the challenges with ATL marketing, Wise continues to test new approaches. Nilan emphasises the importance of revisiting assumptions and experimenting with different strategies to see if conditions have changed.

Takeaway: Never stop experimenting. Even when you’ve found a successful strategy, regularly test new ideas to ensure you’re not leaving growth opportunities on the table.

💸 Customer Acquisition Costs (CAC): The Double-Edged Sword

Nilan discusses how customer acquisition costs (CAC) fluctuate over time, often increasing as you saturate your core market and have to reach more niche audiences. Wise initially leaned heavily on word of mouth, but paid marketing also played a role in their growth, albeit with diminishing returns as competition grew.

Takeaway: Understand that CAC will evolve. It may rise as you scale, but the key is to balance this with long-term customer value (LTV) and continue optimising your acquisition channels.

🔍 Focus on the Product: Word of Mouth as the Ultimate Growth Driver

One of the biggest drivers of Wise’s growth has been word of mouth, but Peiris is clear that it only works when the product is significantly better than the alternatives. Wise’s pricing and speed were so much better than banks that users couldn’t help but talk about it.

Takeaway: For word of mouth to be a significant growth driver, your product needs to be an order of magnitude better than the competition. Focus on creating an experience that delights users so much that they feel compelled to share it.

🎯 Knowing When to Pivot or Persevere

Wise has killed products that didn’t meet their performance criteria, even when the initial investment was substantial. Nilan stresses the importance of being disciplined about where you allocate resources.

Takeaway: Be ruthless in evaluating your product’s performance. If it’s not paying off, consider reallocating resources to more promising areas. But also recognise when persistence might eventually pay off, especially if the potential upside is significant.

🏋️ Hiring for Growth: Lessons Learned

Nilan reflects on hiring mistakes, emphasising that while interviews can give you a sense of a candidate, they’re no substitute for real-world performance. He advocates for quick hires with clear expectations and the flexibility to pivot if things don’t work out.

Takeaway: Speed and flexibility are crucial in hiring. Don’t be afraid to make quick decisions, but ensure there’s a clear plan for evaluating and, if necessary, letting go of hires who aren’t delivering.

🤖 AI and the Future of Growth

As AI becomes more integrated into various functions, Nilan sees it as a tool to make processes faster and cheaper, particularly in operational areas. However, he notes that creativity still plays a significant role in growth strategies, as AI can’t yet replicate the impact of a uniquely creative campaign.

Takeaway: AI can enhance efficiency, but don’t overlook the importance of human creativity. The best growth strategies will likely combine AI-driven insights with innovative, human-led campaigns.

🧩 Final Thoughts: Continuous Learning and Adaptation

Nilan leaves us with a reminder that even seasoned leaders must stay open to new ideas and approaches. The landscape is constantly shifting, and what worked yesterday might not work tomorrow.

Takeaway: Stay curious and keep learning. The ability to adapt quickly and learn from both successes and failures is crucial in driving sustained growth.

Want to know more quickly? Just ask the episode below [web only]👇️🤯
or if you prefer, 🎥Watch the full episode here

📅Timestamps:

• [00:02:46] The power of being different.

• [00:06:17] Marketing channels and growth strategy.

• [00:09:37] Useful content for lead generation.

• [00:11:26] Acquiring a targeted audience.

• [00:15:12] Marketing strategies and challenges.

• [00:20:00] Product marketing and messaging.

• [00:22:44] When a product is working.

• [00:27:08] Long-term investment strategy.

• [00:29:07] Autonomous independent teams.

• [00:33:47] Brand confusion in marketing strategies.

• [00:37:18] Social pressure drives adoption.

• [00:41:32] Becoming profitable after fundraising.

• [00:43:38] Hiring mistakes and lessons.

• [00:48:44] Startup growth myths.

• [00:50:07] Role of creativity in growth.

That’s a wrap.

As always, the journey doesn't end here!

Please share and let us know what you would like to see more or less of so we can continue to improve your Product Tapas. 🚀👋

Alastair 🍽️.