Category: Personal Finance

By Kelechi Anyikude

In today’s highly competitive marketplace, the best tech firms understand the importance of keeping consumers at the centre of product innovation. By doing so, they can create products that meet consumer needs and preferences, differentiate themselves from their competitors, and build a positive brand reputation.

We have seen companies that launched new products or made changes to their existing products in an attempt to gain traction or stay ahead of their competition, but ultimately failed to succeed.

For instance, “Zoto”, a fintech company in Nigeria launched in 2017 with the aim of putting the power of digital transactions in the hands of everyday Nigerians. Zoto sent a shockwave across the country with their generous campaign where they gave N1000 to anyone who signs up. It was a gesture Nigerians weren’t used to at the time. Following a series of affordable and discounted rates for utility bills, the fintech company broke the news in 2018 that it will be shutting down its services. The reasons for this could be many, including a lack of user trust, safety concerns, or simply a lack of demand for the service.

Similarly, Microsoft’s Windows Vista upgrade failed to gain traction with customers, despite significant investment in innovative features and research and development. Windows Vista reduced PC performance and caused a number of internet problems for users This could be due to a variety of factors, including a lack of compatibility with existing software or hardware, a confusing user interface, or simply a lack of interest from consumers.

Not all product flops are necessarily discontinued. In the case of Google+, it did not achieve the level of success that the company had hoped for, despite a significant marketing campaign and initial surge in subscribers. However, Google+ did not completely shut down, and some users continued to use the platform for various reasons, such as the integration with other Google services or for specific interest-based communities.

In all three cases, the companies attempted to innovate and stay ahead of their competition, but ultimately fell short in their efforts to gain market share and achieve sustained growth. It’s important for companies to carefully consider their product strategies and user needs when launching new products or making changes to existing ones, as there are often complex factors at play that can impact the success or failure of a product.

So why did these innovative, creative and well-structured ideas fail?

In the case of Zoto, being in the highly competitive fintech industry, it can be difficult for new companies to gain traction and build a strong user base, especially in emerging markets like Nigeria. Despite Zoto’s initial marketing success with its generous campaign, the company may have struggled to retain users over the long term or to keep up with the rapidly evolving digital payments landscape in the country.

Other factors that could have contributed to Zoto’s closure include challenges with regulatory compliance or partnerships, technical issues or security concerns, or lack of funding or resources to sustain the business. Whatever the reasons for Zoto’s closure, it underscores the challenges and risks that come with launching a new fintech product or service, and the need for companies to carefully evaluate their strategies, user needs, and market conditions to maximize their chances of success.

Despite its ambitious goals, Windows Vista was widely criticized by users and industry experts, and it ultimately failed to gain widespread adoption or replace its predecessor as the dominant operating system. Windows Vista failed to meet user expectations for performance, compatibility, and user experience, and it suffered from poor timing, marketing, and competition. Microsoft later released Windows 7 in 2009, which addressed many of the issues with Vista and was much more successful in gaining adoption and market share.

For Google+ was unable to distinguish itself from Facebook, which had a much larger user base and more established social network features. Google+ also faced criticisms over its complicated user interface and privacy concerns, which further hindered its adoption by users. The decline in user engagement on the platform eventually led to a restructuring of Google’s social network strategy, with the company shifting its focus towards other social products like Google Photos and YouTube.

It is important for tech companies to balance innovation with customer-centricity. While innovation is essential, it is not enough on its own to guarantee success. Companies need to listen to their customers, gather insights and feedback, and prioritize the development of products and services that meet customer needs and expectations.

The failure of many tech startups and products can often be attributed to a lack of understanding of market dynamics and consumer needs. By contrast, the FMCG space has long prioritized consumer needs and insights in product development. Tech leaders can learn from this and focus more on the customer, rather than prioritizing their product above all else.

In Microsoft’s case, the company was able to turn things around with the launch of Windows 10 by adopting a more customer-centric approach. This highlights the importance of taking demand-side considerations into account and prioritizing customer needs in product development.

Need for Tech Companies to be more customer focused by integrating marketing teams in product innovation.

Despite the importance of innovation, companies need to listen to their customers, gather feedback from them and prioritize product development. Innovation is crucial but it is not enough alone to ensure success for tech companies.

The primary objective of product innovation is to create solutions that solve consumer problems or meet their needs. The best tech firms understand this and focus on creating products that add value to their customers’ lives. They invest in research and development to identify consumer needs and preferences, conduct user testing to gather feedback and iterate on their products until they meet customer expectations.

By keeping consumers at the centre of product innovation, tech firms can gain a competitive advantage. Consumers have more options than ever before, and it is essential for companies to differentiate themselves from their competitors. By creating products that stand out from the competition, tech firms can attract more customers, increase market share, and achieve sustainable growth.

In addition, by focusing on consumer needs and preferences, tech firms can increase customer satisfaction and loyalty. Happy customers are more likely to remain loyal to a brand and become advocates for its products. By creating products that exceed customer expectations, tech firms can build a loyal customer base that can lead to increased revenue and brand awareness.

Moreover, a company’s reputation is crucial in today’s digital age, where a single negative experience can quickly spread across social media and harm a brand’s image. By creating products that meet consumer needs, tech firms can build a positive brand reputation. Customers are more likely to recommend a brand that has a good reputation, leading to increased trust and credibility among consumers.

Finally, by keeping consumers at the centre of product innovation, tech firms can identify new growth opportunities. Consumer needs and preferences are continually evolving, creating opportunities for tech firms to develop new products and services. By staying focused on consumer needs, tech firms can identify emerging market trends and develop innovative products that meet these trends.

In conclusion, the best tech firms keep consumers at the centre of product innovation to gain a competitive advantage, increase customer satisfaction and loyalty, build a positive brand reputation, and identify new growth opportunities. By investing in research and development, conducting user testing, and iterating on their products, tech firms can create products that add value to their customers’ lives, differentiate themselves from their competitors, and achieve sustainable growth.

Kelechi Anyikude is a growth strategist

The financial services space is widening with the rising interest Nigerians are showing in investing in cryptocurrencies. Even hedge fund providers are now investing a lot in bitcoins thereby opening a new channel for providing financial services for the banked, under-banked and unbanked. The founder and lead, Cryptopreacher Blockchain Academy, Rume Ophi, lists the opportunities in investing in cryptocurrency and why bitcoin is the next big thing connecting  more Nigerians to the financial services net, writes COLLINS NWEZE.

 

The cryptocurrency space is fast expanding, with more people, including those at the grassroots, embracing the digital investment plan. Even hedge fund providers are investing a lot in bitcoins.

For instance, Square, a crypto friendly payment platform, stated last month that it had put one per cent of its holdings valued at $50 million on bitcoin.

Founder, Cryptopreacher Blockchain Academy, Rume Ophi said cryptocurrency presents a lot of investment opportunities for Nigerians.

He said they should use bitcoins as means of transactions, adding that those that want to use bitcoins as an alternate form of financial instrument should do that. The idea of putting fear in people is not right.

According to him,  the knowledge of cryptocurrency is growing globally because people look for an alternative form of money. Ordinarily, money is a way of adding value.

He explained: “During the era of trade by barter, if you work for me, I can decide to pay you with rice, garri or beans and the government was not involved. But today, we have moved from the trade by barter to trading with gold, then to receiving documents from the government for transaction purposes, which has metamorphosed to paper money.The government can decide to print as much money as it wants through the monetary policy. In 2012, one bitcoin was $10 and the exchange rate to the naira then was N157. It means one bitcoin then was N1,570.

“But now, one bitcoin is over N8 million. There is this global attention given to bitcoins because even the dollar is losing its value. Earlier, the U.S. government injected about $1trillion as a stimulus package to its citizens, and there could be a second wave. People are beginning to realise that their money is no longer getting the right value, inflation has come in.

“The supply of bitcoins is fixed and I believe that most people don’t know how much naira are in circulation but we know that 18million bitcoins are now in circulation as against 21 million bitcoins that will be its total supply. People now see bitcoin as a digital gold. So, instead of getting the physical gold, you just need a piece of the software, you could get bitcoin on your wallet.”

He said cryptocurrency Asset Manager Grayscale Investments now holds more than 500,000 BTC in its Bitcoin Trust product, GBTC. All of these things are inspiring. For big institutions to be getting bitcoins, it shows there is a future in it.

On the risks associated with investing in the sector, he said he is  a member of the Stakeholders in Blockchain Technology Association of Nigeria. The group, he added, is  is a self-regulated and operators have been able to engage the government and tell them our stands to regulate this space and we will support it. They have also been able to engage a few persons from the Security and Exchange Commission (SEC).

Ophi attended a webinar organised by Stakeholders in the Blockchain Technology Association of Nigeria. One of the key participants spoke about the government wanting to regulate the space because they are aware that a lot of Nigerians are getting involved in crypto.

He said Nigerians are one of the highest downloaders of crypto wallets. If the government regulates the space, it will be a safe guide against scammers. They have given Exchange owners an ultimatum to register with the SEC.

“When we had shortage of dollars in Nigeria, a lot of people started using bitcoins because it is money. This increased the awareness in bitcoin investment. In the last six months, bitcoin has grown by over 100 percent despite global economic downturn and impact of COVID-19. This was possible because people transact on bitcoins which is easier. People don’t want to go through the rigorous process of always going to the bank. Nigerians have realised that leaving their money in bitcoins will increase the value of their money.

“At some point this year, we have seen the exchange rate go up from N360 to about N478 to a dollar. If you put your money in bitcoins years ago, by now, you would be making over double of what you invested. These are opportunities. You earn money by not doing anything but just having your money in bitcoin. It is an opportunity for Nigerians. Some shipping companies abroad accept bitcoins as a means of exchange.”

Bitcoin is money for young people. Bitcoin is growing. In the last three elections in the United States, bitcoins have grown from $10 to $700 to now $13,800. People have estimated that bitcoins may do almost $100,000 before the next US elections.

“The world is focused on technology. I will advise Nigerians to save on crypto in the long term. For the short term, they can do short trading which I do. People can do remittance where they get paid in bitcoin. I write articles on crypto and I get paid in bitcoins. I teach and do public speaking as well and I get paid in bitcoins. I do customised crypto shirts as well. As basic as these things are, you can bring cryptos in. You can even be a crypto lawyer.”

On his message to Nigerians, Ophi said: “Christine Lagarde, president of the European Central Bank stated that ‘We should be happier that we have a job rather than have our savings protected.’ A lot of people want to protect their savings forgetting that if you keep money in the bank, it could depreciate. If you relate it with what Lagarde said, you will understand that it is not just about putting money in the bank but making returns.

“When it is dark, a lot of people know it’s dark. People are not scared that it is dark but they are scared of what comes with the darkness. There could be someone with a gun or a knife or something may be dangerous out there.

“But when you get into the dark, and see what is in the dark and approach it, automatically, you cut your fears. If you don’t know what is going on in the space, it increases your fears but if you have the right knowledge, you will understand the right things to do. We are always here to help people understand these things.”