Innovation Without Utility Is Death for Startups
Tonight, I found myself in a passionate discussion with a mentor of mine. The topic was a company we both care about, but our perspectives on their direction diverged significantly. My concern centered on the company’s inability to deliver on the promises they make to their customers. My mentor, however, argued that their innovative approach and success in capturing industry influencers were commendable.
Innovation is pretty overrated. Your goal should not be being innovative, your goal should be to be useful.
Jason Fried, 37 Signals
Before jumping to conclusions, let me clarify: being useful can be innovative. However, being innovative does not always equate to being useful.
The Case in Question
The company in question offers a robust content management system (CMS) that streamlines publishing, organizes content efficiently, and optimizes it for search engines. On paper, it’s a dream tool—a solid infrastructure that enables teams to publish content effortlessly.
However, there’s a glaring problem. While the platform simplifies the technical side of content creation, it neglects some critical aspects of SEO. This oversight undermines its core promise of helping search engines discover, index, and rank content.
Put simply, the platform is not as useful as it claims to be.
Misplaced Focus and Consequences
My mentor conceded that the company struggles to win over in-house SEO experts during sales pitches. And why wouldn’t they? The platform falls short of delivering value when fundamental optimization elements are missing. The company loses credibility, and sales are lost to internal SEO teams who see the gaps.
Instead of addressing these issues, the company is chasing superficial goals: partnering with internet celebrities, hosting flashy webinars, promoting industry leaders, and rolling out dazzling new features. While these efforts may boost visibility temporarily, they fail to address the root problem—delivering tangible, useful value to customers.
This misalignment has led to several challenges:
- Employee dissatisfaction: Frustrated support teams and high turnover rates.
- Customer churn: Dissatisfied customers leaving due to unmet expectations.
- Sluggish growth: A declining reputation and inability to keep pace with competitors.
Each new release introduces innovative features and, with them, new problems. This is perpetuating the cycle of dissatisfaction. The company is losing its footing because it’s prioritizing innovation over utility.
The Way Forward: A Return to Utility
The solution is simple yet profound: return to being useful. When the company focuses on fixing its gaps and aligning its platform with its promises, it will see an explosive turnaround. Customers who find real value in the platform will become its biggest advocates, fueling growth and restoring its reputation.
Key Takeaways:
- Innovation without utility is hollow: Innovation is valuable only when it addresses real customer needs and solves problems effectively.
- Customer expectations matter: Companies must deliver on promises made during sales to build trust and loyalty.
- Focus on fundamentals: Ensure the product or service delivers foundational value before chasing external recognition.
- Retention trumps acquisition: A satisfied, loyal customer base is more valuable than fleeting attention from influencers or new prospects.
- Simplicity breeds success: Streamlining the product to address customer pain points can lead to exponential growth and long-term success.
For now, innovation may be killing this company, but with a shift in focus, they can reclaim their path to greatness.
