In a riveting discussion with Noam Bardin, former CEO of Waze, we explore the company’s journey from a small startup in 2008 to a billion-dollar acquisition by Google in 2013.
Bardin shares the unique approach to product thinking, the power of data network effects, and the importance of a guiding north star metric that propelled Waze to its success.
The Power of Community
Creating a sense of community among users can be a powerful differentiator.
Waze engineered its app to allow users to see other people using the app in real-time, creating a sense of connection and the feeling that users were not alone.
Differentiation of Driven Kilometers
Understanding the nuances within a key metric can provide valuable insights.
Waze differentiated between professional drivers and consumer drivers, as well as between people driving in their hometown versus those on a one-off road trip.
This differentiation allowed for a more accurate understanding of user behavior and engagement.
Unique Approach to Building Maps
Waze’s unique approach to building maps involved a combination of volunteers and GPS chips on cell phones.
This approach was radical at the time, but it allowed them to create a more accurate and up-to-date map.
Managing User Expectations
Managing user expectations is crucial for maintaining user engagement.
Waze was transparent with its users about the current state of the product and how it would improve in the future, which helped maintain user trust and patience.
Creating Emotional Experiences for Users
Creating emotional experiences for users can be as important as providing functional benefits.
Waze focused on creating features that made users feel in control and empowered, such as the ability to report traffic.
The Power of Specific KPIs
As startups grow, their key performance indicators (KPIs) become more specific and deeper, reflecting the business and user experience more accurately.
For Waze, driven kilometers became a crucial metric, representing engagement levels, data collection, advertising revenue, and overall usage of the service.
Launching Locally vs. Globally
Launching a product locally before going international can have its advantages and challenges.
While small countries may need to focus on export due to a limited local market, larger countries can focus on their domestic market.
However, success in a local market does not guarantee international success.
Understanding Your Market and Setting the Right KPIs
Understanding your market, setting the right KPIs, and having a clear vision for your company are crucial for success.
These elements provide a roadmap for navigating the challenges of growing a company and achieving global success.
Balancing Functionality and Engagement
Balancing functionality and user engagement is key for a product’s success.
Waze managed to provide a service that was both functional and engaging, providing real value to users.
The Challenge of Prioritization in Startups
Prioritization is a significant challenge in startups, especially when they start to gain traction.
Having a clear mission and vision can help in making decisions when faced with multiple smart ideas from brilliant team members.
For a real global brand, you have to be successful in the US. I mean that’s just the reality and I say to a lot of people you can be super successful anywhere in the world that doesn’t mean you’re going to be successful in the US. – Noam Bardin, former CEO of Waze
When you think about what our network produces of users and traffic, the more people drive with the service… we collect more data off it, they spend more time with us, we can make more advertising revenue, we see that the engagement levels grow, the more people use us, the more people use our product, the more features they discover driving more usage. – Noam Bardin, former CEO of Waze
The Network Effect of Waze
The value of Waze increases with each additional user because each user provides data that helps all other users.
However, this requires a certain minimum number of users for it to start working.
The Necessity of Success in the U.S. Market
For a brand to truly go global, it needs to succeed in the U.S. market.
Success in the U.S. significantly increases the odds of success worldwide, although there are exceptions for companies that are very local or regional.
