Warren Buffet letters, market gaps, and rituals.

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Make it a ritual to increase satisfaction and sales

Insight from Ariyh

Rituals turn mundane tasks into experiences.

When customers follow a series of prescribed actions for a product they tend to:

Enjoy the experience more
Enjoy the product more
Pay more to have it

But rituals can't be random gestures. They need to be systematic and repetitive. It has to feel natural to how people actually use the product, and enhance the experience.

Some familiar ritual examples:

Oreo: Twist, lick, and dunk cookies in milk.
Corona: Press a fresh lime wedge into the bottle.
Champagne: Pop the cork, cheer, and pour into flutes.

Why rituals work:‍

Rituals increase people's involvement with a product in a unique and memorable way.

A ritual instructs people on the "right way" to use it.
A mini version of the IKEA Effect, the ritual makes customers feel like they had something to do in the creation of the product experience, therefore increasing its value and appeal.
It gets them in the right mindset for using the product.

They also turn a mundane moment into an experience. They're not just opening up a bottle of sparkling wine, they're celebrating a win.

Steps to implement:

Elements of a great ritual:

Easy to do: If it's hard, people won't do it.
Tied to an emotion: Like celebration for champagne. Relaxing for Corona + Lime.
Have a trigger: Celebration for champagne. KitKat increased sales by creating the ritual for KitKat + coffee—drinking coffee is a very common trigger.
Add to the experience: Let's face it, Corona is kinda meh. The lime adds to it.

Once you have an idea for your ritual and you've found an emotion or context to tie it to, test it on a small scale.

Then associate the ritual (lime in a corona) with the target emotion (relaxing) by showing it in a context that evokes that emotion (someone on a beach in Mexico on vacation).

If you've done it right, your ritual will grow organically and become inherent to the
product experience.

How Warren Buffet writes compelling letters

Insight from John Harrison (not a mix of John Lennon and George Harrison).

Warren Buffet's net worth is $117,000,000,000 and his company's investment portfolio gains on average 19.8% per year.

His own company's stock costs $548,984.95 each—wild.

He's famous for his "buy and hold" strategy—resisting selling in the best and worst of times.

Besides insane willpower, one of his greatest strengths are his expertly written shareholder letters.

In them he convinces and assures his shareholders to continue to hold their shares. To believe in him and his strategy even through the worst crashes and recessions.

His tactic for writing compelling letters, as John Harrison wrote:

Or as Jeremy wrote:

Write marketing copy, newsletters, emails, and messages as if to a sister, a best friend, or your mom/dad. And not for a state of the union or to a supreme court judge.

3 ways to find gaps in the market

Insight from Charlie Grinnell (RightMetric)—charts below are from their research.

Most founders/marketers completely wing their growth strategy.

Here are 3 ways to use research to find opportunities in the market:

#1. Audience Whitespace

Of people interested in your product/category, who isn't being being served? For example:

#2. Channel Whitespace

Where are customers spending time and competitors are not?

For marketing channels, Charlie says to find the intersection of:

Where your potential customers hang out
Where there's the least competition
Where competitors are already seeing results
Where your content/voice makes sense

#3. Positioning Whitespace

What are your customers:

Searching for (search trend analysis) and
Asking for (social listening)

That competitors are not focusing on. For example:

Take time to study these 3 whitespaces to find opportunities—and if you're willing to invest, tools like SimilarWeb have a ton of data to parse through.

News and links

News you can use:

Twitter/X updated their privacy policy twice. Once about collecting biometric and employment data. Second, they may use any data they collect to train AI models.
To cut down on misleading ads and spam, Google announces a probationary period for first-time advertisers.
Meta announces it's considering a premium ad-free tier for Facebook/Instagram in the European Union due to upcoming regulations. This could cause ads to be less effective in the EU!
BeFake, a social app focusing on sharing BeReal-like photos altered using AI, just raised $3M. I am so confused what is going on with the world right now.

Report we recommend: 2023 Benchmark Report*

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