Logical to you, gibberish to your neighbour

Understanding your customers requires you to look beyond your own logic. What seems completely obvious to you may be gibberish to someone else. I was reminded of that today during a conversation with my colleagues John and Tony about the American housing market.

It is February 2010, and the housing crisis is still a major issue. The conversation became both a discussion about morals and a small lesson in how differently people can view the same situation.

The flat lost value, but the next house became cheaper too

A few years ago, Tony bought a one-room flat at the top of the market for 80,000 dollars. He was happy with it, but later got married, had a child and wanted somewhere bigger.

Then the crisis hit. The flat became worth less and less. I mention values of around 50,000 dollars and as low as around 30,000; later in the conversation, I use 40,000 dollars as an example. The point is that it had become worth significantly less than the 80,000 dollars he had borrowed.

On the other hand, the house the family wanted had fallen from around 500,000 or 600,000 dollars to 240,000 dollars. So I tried to explain to him that the overall picture really was not that bloody bad: the next place he wanted to live had also become much cheaper.

The family bought the house. Or rather, his wife bought it with her own money. Tony had a plan for the flat.

We disagreed about who should take the loss

As Tony explained it, he was not going to repay the debt on the flat. He expected it to be repossessed and the bank to take the loss. His view was that the evil banks had created the problem.

Here, I describe how I understood his plan and our discussion. I do not fully understand how that arrangement works myself. But he thought it was fine, and that having the house in his wife’s name changed his situation.

I had a problem with the morality of it. Tony could not understand why at all, and John also saw the banks’ share of the responsibility as a reason they should take the loss. Otherwise, I think they are both reasonably decent guys.

My reply was: You have been given the chance to buy a house much more cheaply. And whatever you think of the banks, the debt on the flat is something you took on.

They thought the banks should not have lent the money back then and therefore also had to bear responsibility when things went wrong. So I asked whether Tony would have shared the profit with the bank if the flat had risen to 200,000 dollars instead. He bloody well would not. He could barely understand why I was asking.

Understanding your customers starts with accepting differences

I sat there thinking: Bloody hell, Americans can be strange sometimes. But what is interesting is that they did not feel they were being immoral at all. We simply saw things very differently.

It reminded me how different our morals, ethics and perceptions can be. And you need to think about that when you make products for other people too.

You cannot simply start with what you want yourself. You may want the product blue and round, while someone else wants it red and square. Your own preference does not make other people’s wishes wrong. Also read E-pusher for my experiences of selling online.

Even a link can create two completely different camps

Look at the people you spend time with. How often do you disagree about something you find completely logical?

On Amino, for example, we have had a debate about whether links should open in a new window. Quite a few said yes, and quite a few said no. People could almost not understand that the other side wanted something different.

So I use the experience as a reminder to myself: When I want something or make a new product, I really need to think about how other people see things. If I only see the world from my own side, I will not make much bloody money.

What is logical to you may seem strange to your customers. Best wishes, Martin

Location:Jasmine Ct,Delray Beach,USA