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Let's talk about shiny insight syndrome.
You're working on a product and stumble upon an exciting insight that draws your attention like a shiny object. PMs doing user research get distracted by this.
So how do we find the right insight to work on?
Based on my experience, I developed the insight impact matrix to determine which insights are most valuable for your project.
The matrix is based on the intensity and longevity of an insight's impact.
Let's take a closer look at each of the quadrants.
Q1: Low impact & short term
Insights that have a low impact in the short run are usually related to quick fixes/usability issues that are relatively easy.
The correlation between the problem & solution is often clear, making it a straightforward process to implement changes.
Examples:
"Users find it challenging to discover the customer support number."
"Users don't understand the term 'add to cart' in the checkout flow."
Q2: High impact & short term
Insights in this quadrant can potentially improve the app's north star metrics in the short run.
They provide us with a direction towards a potential solution, but the path to implementation is not always straightforward.
These types of insights typically require experimentation to determine the best approach.
Onboarding, engagement, retention, and growth challenges often fall under this quadrant. As a PM, generating insights in this quadrant should be a priority in the short run.
Examples:
"Users drop off after the third step on the onboarding."
"Users find adding a new address on the website hectic and time-consuming."
Q3: Low impact & long term
Insights are characterized by low impact in the short term but have long-term implications. These insights are related to behavioural trends potentially threatening in the short run but are expected to change due to macroeconomic trends over time.
Examples:
"Women in India do not have access to a smartphone of their own."
"Indians are sceptical about adding their debit card information online."
If you work in a founder's office or a strategy role, you must catch these trends and patterns through research insights.
Depending on your perspective, these insights can be perceived as either long-term high impact or long-term low impact.
For example, women not having access to mobile phones may be an opportunity for a smartphone maker, but it could threaten the market size of an online fashion brand in the short run.
It's important to note that while insights in this quadrant may not have an immediate impact, they can be highly valuable in long term.
They may signal a significant shift in consumer behaviour or a macroeconomic trend that could have far-reaching implications for your business.
Q4: High impact & long term
Insights in this quadrant have a high impact on the long term but may be potentially threatening to the business model.
They arise when users engage with your product solely for external rewards rather than the core value proposition of the app.
Finding solutions to these problems may require making tough decisions for the larger good of the business, even if they take a hit in specific metrics in the short term.
If you're a founder in a business or finance role, this is an insight that you should focus on.
Examples:
"Users are purchasing on the app only for the steep discounts and cashback and might shift to a new app for better cashback."
"Users don't find paying for the premium features valuable as the free features solve all their requirements."
While insights in this quadrant may require difficult decisions, it's essential to approach these insights with a growth mindset and a willingness to take calculated risks for the greater good of your organization.
As the great investor Charlie Munger once said,
"The first rule is not to fool yourself. And you are the easiest person to fool." So be honest with yourself.
Are you getting sidetracked by shiny insights? If so, take a step back and remind yourself of your project's objectives.
Want to leverage the best of user research? Prioritize insights based on impact and longevity.
Focus on quick fixes, improve north star metrics, anticipate trends, and face threats head-on. The insight impact matrix can guide your decisions and set you on growth.