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October 18.2025
1 Minute Read

Explore video marketing trends 2025 You Can't Miss

Did you know that video will make up over 85% of all online traffic in 2025? For local home service businesses, this surge isn’t just a number—it’s the future of digital marketing. In a world where your neighbors are watching how-to videos for home repairs and scrolling past static ads, learning the latest video marketing trends 2025 can help your business stand out, win more leads, and keep customers coming back. In this guide, you’ll discover the must-know trends and strategies designed for local home services to thrive in the digital age.

A Startling Statistic: Why Video Marketing Trends 2025 Matter More Than Ever

The rapid rise of video content has reshaped how people discover, choose, and trust local businesses—especially in the home services sector. According to current projections, consumers are 64% more likely to hire a local plumber, electrician, or HVAC tech after watching a short-form video about their service. Whether it’s explainer videos, DIY demonstrations, or behind-the-scenes glimpses, videos are now the most influential digital marketing tool for connecting with your neighborhood audience.

As video marketing trends 2025 evolve, local businesses that ignore these shifts risk being left behind. Most major social media platforms and search engines now prioritize video content, helping even the smallest home services brands reach more eyes for less cost. These marketing trends indicate that effective video marketing isn’t a bonus—it’s an essential part of every marketing strategy if you want to stay ahead and attract local customers. Next, we’ll break down the factors driving this massive growth and what you can do to set your business up for video-first success.

Home services team filming promotional video for video marketing trends 2025, friendly expressions, modern living room setup, HD realism.

The Surge of Video Content in Digital Marketing

Video marketing trends 2025 reveal the undeniable dominance of video content in digital marketing and its explosive growth in the local home services industry. Platforms like YouTube, Facebook, and TikTok are putting video front and center, while Google’s search results increasingly prioritize video snippets for home improvement queries. This surge means that even small service providers—think plumbers, landscapers, or cleaning companies—can now harness the reach and conversion power once reserved for big brands.

The main driver? Video content delivers what customers want: quick answers, trust, and a peek behind the curtain. Video tours, customer testimonials, and time-lapse repairs have all become signature pieces for marketing campaigns. And with emerging AI tools lowering the barrier to quality video creation, home service businesses can create and share attention-grabbing, high-performing videos consistently. This marketing trend is here to stay—so mastering it early is a recipe for staying relevant and top-of-mind in your local community.

For a deeper dive into how these trends are shaping the competitive landscape and actionable steps to stay ahead, you might find the insights in Video Marketing Trends 2025: Stay Ahead or Fall Behind especially useful. It explores practical tactics and strategic pivots that can help your business adapt to the evolving video-first environment.

The Explosive Rise of Video Usage: Home Services Industry Metrics (2022-2025)
Year % Home Services Using Video Avg. Video Engagement Rate ROI Increase from Video
2022 47% 41% 18%
2023 59% 51% 22%
2024 70% 64% 28%
2025 (projected) 81% 73% 41%

What You’ll Learn: Mastering Video Marketing Trends 2025 for Local Businesses

There has never been a better time for local home service providers to get started with video marketing. This article will help you understand the biggest video marketing trends shaping 2025 and how to apply them, even if you have zero experience with video tools or digital marketing. By the end, you’ll gain practical know-how for creating effective video ads, using AI tools to save time and money, and building marketing strategies that connect with real customers in your community.

  • How to apply the latest video marketing trends 2025 effectively
  • Key digital marketing shifts affecting home services
  • Using AI tools for video creation and strategy
  • Building marketing strategies with social media
  • Case studies: Successful video marketing in home services

AI video editing tools for home services video marketing trends 2025, marketer working in digital workspace.

What Defines Video Marketing Trends 2025 for Home Services?

Video marketing trends 2025 are defined by fast-evolving technology, changing customer preferences, and massive competition for attention. For local home services, the winning strategies balance authentic storytelling with the smart use of AI tools and platforms. Customers expect quick, relatable answers—meaning a two-minute explainer video or a friendly “how we work” clip can outperform traditional ads. At the same time, video creation has never been easier, with new AI video apps guiding you from script to screen.

Another defining factor is the shift in how audiences interact with digital marketing. Younger buyers (and more and more older ones) seek information on platforms like YouTube, Facebook, and even TikTok. That’s why marketing campaigns must now be visually engaging, personalized, and adapted for short attention spans. The most successful brands in 2025 will use a mix of short-form, live, and user-generated content to drive real engagement—and more service calls.

How Video Marketing Trends Are Shaping the Digital Marketing Industry

As marketing trend cycles quicken, video content is shifting from “nice to have” to “must-have.” Digital marketing experts agree: businesses that prioritize video creation win hearts, clicks, and conversions. Platforms are pushing video harder in their algorithms, and AI tools now enable even solo operators to deploy high-quality explainer videos or video ads without a pro videographer.

The impact is clear: from higher Google rankings to better social media engagement, the data all points to video as the most effective way to share knowledge, show credibility, and foster local trust. Even traditional media platforms are adapting by mixing video with written content to appeal to changing customer consumption patterns. If there’s one digital marketing trend to master in 2025, it’s video—it touches every stage of your customer’s journey, from discovery to decision.

Digital marketing team developing a video marketing strategy for 2025, laptops, video thumbnails, and whiteboard in sunlit office.

Core Elements of an Effective Video Marketing Strategy in 2025

A successful video marketing strategy in 2025 isn’t just about making any video—it’s about creating quality content that your audience actually wants to watch. First, focus on customer needs: what problems can you solve, and how can you teach or inspire action? Explainer videos, virtual tours, and testimonials are especially valuable in home services. Second, distribution is key. Prioritize platforms where your target audience spends time—like Facebook, Instagram, or YouTube.

Finally, measure what matters. Track engagement, leads generated, and feedback on your marketing campaigns to refine your approach. Use AI tools and analytics dashboards to learn which types of video ads or content drive real bookings. When all these elements come together, your company doesn’t just keep up with video marketing trends 2025—you become a trusted local authority and a preferred choice for home service shoppers.

Key Video Marketing Trends 2025 Local Home Services Can't Ignore

Understanding the core video marketing trends 2025 isn’t enough—you need to use them to outshine your competition. In the next sections, we dive into the practical trends redefining digital marketing for home service companies: from short-form clips to cutting-edge AI video, explainer videos, and user-generated campaigns. Each trend is a chance for your business to show expertise, connect with your neighborhood, and boost your calls.

These trends are more than hype. Each addresses a specific customer need or platform opportunity, helping local providers deliver the type of content that spreads, sticks, and gets phones ringing. Let’s explore the hottest strategies you can start using today to drive real results.

  • Why short-form video ranks high in video marketing trends 2025
  • Best practices for local engagement

Short-form video is the king of social media in 2025 and a top video marketing trend for home services. With platforms like TikTok, Instagram Reels, and Facebook Stories favoring 15-to-60-second content, homeowners are watching (and sharing) quick tips, before-and-after shots, and fast repair demos daily. These videos aren’t just entertaining—they’re proven to drive stronger local engagement, as viewers prefer to see real people solving real problems in real time.

Best practice: Shoot vertical, keep it friendly, and always end with a call to action (“Get a free quote!” or “See more tips on our channel!”). Use your phone’s camera or affordable video tools like CapCut or InShot, and dive into posting—consistency beats perfection. The key is relatability: be the face of your service and speak directly to your community. Short-form video is an opportunity for any business to reach new customers daily and build brand loyalty faster than ever.

Engaging short-form video marketing trends 2025: homeowner and technician filming entryway repair for social media.

Explainer Videos & How-To Content Dominate Video Marketing Trends 2025

  • Benefits for home services audience
  • Examples of converting explainer videos

Explainer videos and quick DIY guides have overtaken blogs as the go-to source for home repairs and service decisions. The benefits are clear: your brand becomes a helpful guide, not just another advertisement. Video creation focusing on teaching—like “How to Fix a Leaky Faucet” or “What Happens During a Professional Cleaning”—can attract new leads and reassure nervous homeowners, boosting your credibility.

Great explainer videos follow three rules: they’re clear, concise, and actionable. Use AI tools like Synthesia or Animoto to generate voiceovers, graphics, or even realistic presenter avatars. Feature your own team in instructional clips for extra authenticity. The most successful home service brands rotate fresh explainer content each month, tied to seasonal tips or trending repairs, and promote these videos across their website and social media platforms. Done right, they become your best salespeople—working 24/7 to nurture new leads.

Expert home services technician filming a DIY explainer video for video marketing trends 2025 in a bright, modern kitchen.

AI tools are transforming video creation in 2025, lowering costs and putting power back in the hands of local businesses. Tools like Lumen5, Pictory, or generative AI platforms build video marketing content from a few lines of text—no editing skills needed. Imagine scheduling and personalizing dozens of video ads or customer reminders in a fraction of the time it used to take!

‘In 2025, AI-powered video creation will dramatically lower costs and improve ROI for local businesses.’ – Industry Analyst

With AI video, any content creator can turn blog articles, FAQs, or customer testimonials into engaging content for every media platform. AI tools also help identify trending topics, automate video editing, and even optimize soundtracks or captions. Embracing these technologies allows your business to stay ahead of larger competitors—producing quality content quickly and adapting to fresh marketing trends as they emerge.

User-Generated Content Becomes a Top Marketing Trend

User-generated content (UGC) has risen as a crucial marketing trend in video marketing trends 2025. When happy customers post their own testimonial videos, share before-and-after stories, or tag your service on social media platforms, you gain instant trust and “word of mouth” at scale. This digital marketing approach isn’t just authentic—it harnesses the power of your biggest fans and turns them into brand advocates.

The best UGC strategies encourage real customers to share their experiences. Offer discounts, run a contest, or simply ask clients to leave a selfie video after a successful visit. Platforms like Instagram and Facebook make it easy to feature customer content in your marketing campaigns, multiplying your reach. More than 64% of local service buyers say they choose a provider based on seeing real customer video testimonials—a metric that will only grow as people seek relatable, trustworthy home solutions.

Local family recording user-generated video testimonial after home service for video marketing trends 2025, genuine atmosphere.

360-Degree Video and Virtual Tours for Home Services

Next-gen marketing trends include immersive video formats: 360-degree videos and virtual tours. These allow customers to explore your work before booking—no matter where they are. For example, property managers, cleaning companies, or remodelers can create walkthroughs of homes, highlight before-and-after upgrades, and show off trust-building details like branded uniforms or clean vehicles.

Adding 360-degree video to your content marketing sets you apart in a crowded digital market. These videos can be embedded on your website or shared across social media platforms, providing an interactive edge and encouraging viewers to “step inside” your service experience. It’s a surefire way to impress tech-savvy homeowners, build transparency, and make your digital marketing strategy truly stand out in 2025.

Immersive 360-degree virtual tour for home services video marketing trends 2025, inviting modern living room.

Integrating Video Marketing Trends 2025 into Your Local Digital Marketing Strategy

Knowing which video marketing trends 2025 work for home services is only half the battle. The real challenge is weaving these marketing trends into your daily digital marketing game plan. This means mapping the right type of video content to each stage of your customer journey, using AI tools for smarter video creation, and personalizing your approach for your unique neighborhood audience.

Smart distribution is essential. Get your videos in front of the right people—on their favorite social media platforms, in Google search results, or even via email follow-ups. You don’t need to do everything at once: focus on the marketing strategies that fit your goals, your team, and your market.

Mapping Video Content to Your Customer Journey

Every great marketing campaign starts with understanding your customers: What do they need before, during, and after booking your service? Use top-funnel videos (like “5 Signs You Need a Plumber”) to attract new leads on Facebook or YouTube. In the mid-funnel, explainer videos, case studies, and behind-the-scenes clips build trust and answer questions. Closing the sale often relies on customer testimonial videos and special-offer announcements to nudge viewers into action.

Use analytics dashboards or AI tool recommendations to see which videos drive the most calls or quote requests, and adjust your marketing strategy based on real-world results. The biggest brands map at least three different types of video content to each stage of their marketing funnel—giving customers a clear, natural path from learning to buying.

Marketing Strategy: Personalization and Hyper-Local Targeting

In 2025, the secret sauce of digital marketing is personal touch. AI video tools and audience data make it possible to address viewers by name, customize offers to local needs, and target ads by zip code or neighborhood. Personalization increases trust and response rates dramatically, while hyper-local targeting helps you use your budget efficiently—no more wasting money on the wrong audience.

Start by segmenting your audience: new homeowners, landlords, or repeat clients may all need different tips and offers. Then, use tools like Facebook Ads Manager or Google Performance Max to push your tailored video content directly to the people who matter most. The best digital marketing strategies in home services are built on relationships—with every video, you prove you’re the local expert they can rely on.

Marketer analyzing video marketing trends 2025 performance data for home services strategy in a cozy workspace.

Leveraging Social Media to Distribute Video Marketing Trends 2025

Social media is the home turf for video marketing trends 2025. Sharing your content on platforms like Facebook, Instagram, TikTok, and YouTube extends your reach, promotes shareability, and generates valuable feedback in real-time. Remember, each media platform has unique preferences: vertical and short-form work best on TikTok and Instagram Reels, while longer tutorials or live videos resonate on YouTube and Facebook.

Consistent posting and community interaction build your reputation. Respond to comments, celebrate customer wins, and ask viewers what videos they want next. Use platform analytics or AI tools to study engagement rates, and focus your energy where your results (and customers) are greatest. With the right mix, your local business’s social media becomes a lead magnet and a loyalty engine.

Video Production Best Practices for Home Services in 2025

While AI tools speed up video creation, best practices still win the day. Crafting compelling, authentic, and useful videos will help your digital marketing campaigns perform their best. This means planning your shoots, scripting your messages, and ensuring you have proper lighting and clear sound. Professionals aren’t always needed, but a little attention to quality goes a long way!

Use these tips to help your video marketing stand out: record in well-lit rooms, keep the background tidy, and feature real team members to build trust. Leverage AI video editing tools for captions, music, and templates to speed things up without sacrificing polish.

Tips for Effective Video Creation with AI Tool Support

Modern AI tools put professional video production within anyone’s reach. Start by drafting simple scripts focused on customer problems or seasonal tips. Use tools like Lumen5, Pictory, or Canva Video—which let you drag-and-drop footage, auto-add captions, and even predict the best thumbnails for more clicks. Don’t forget: natural lighting, real team faces, and unscripted moments increase authenticity and viewer trust.

After creating your videos, use built-in analytics to track which formats and platforms drive more engagement. AI-backed recommendations help you optimize posting times and video length. And with generative AI, you can quickly re-edit or revoice your videos, making it easy to keep your content fresh and relevant all year round.

  • Key platforms for home services video marketing trends
  • Live stream scheduling and engagement tips

In 2025, both pre-recorded “form” video and live streaming have important roles in a home services digital marketing strategy. Form video—think how-to guides, Q&As, and safety walkthroughs—works best for YouTube and as website resources. They’re polished, reusable, and can be optimized for Google SEO.

Live video, meanwhile, creates urgency and a real-time connection. Use Facebook Live or Instagram Live for Q&A sessions, event coverage, or seasonal home checklists. Promote your live streams ahead of time on all your media platforms to build anticipation. Both types of video marketing offer unique ways to engage different segments of your target audience and should be used together for a well-rounded strategy.

Essential Metrics to Measure Video Marketing Success

Measuring the results of your video marketing campaigns ensures that your efforts lead to real business growth. Track views, average watch time, click-through rates, and conversion metrics (like quote requests or booked calls). Platforms like YouTube, Facebook, and TikTok provide built-in analytics; AI tools can help aggregate and interpret this data for deeper insights.

Don’t forget to monitor direct feedback—comments, reviews, and post-campaign surveys reveal what truly works. Over time, comparing these numbers helps refine your digital marketing strategy, focusing your energy on video content that turns viewers into leads and loyal customers.

How Local Businesses Are Winning With Video Marketing Trends 2025 (Case Study Reel)

People Also Ask: Video Marketing Trends 2025

What is the biggest video marketing trend in 2025?

The biggest video marketing trend in 2025 is the explosive dominance of short-form and AI-generated video content across social media and search platforms. Businesses that embrace snackable, vertical videos and leverage AI tools to speed up content creation see the highest engagement, making this approach essential for local home services aiming to stay competitive.

How can local home service businesses use video marketing trends 2025 to increase leads?

Local home service businesses can use video marketing trends 2025 by sharing helpful explainer videos, quick project showcases, and real customer testimonials on social media. Using AI tools for editing, subtitles, and analytics helps businesses create professional videos in less time—ultimately turning more viewers into booked appointments.

Are AI tools essential for video marketing trends 2025?

Yes, AI tools are quickly becoming essential for video marketing in 2025. They streamline editing, automate content suggestions, and personalize video messages for different audience segments, making high-quality content creation possible for even the smallest local service providers—all while lowering costs and saving time.

Which social media platforms are dominating video marketing trends for local businesses in 2025?

In 2025, Facebook, Instagram (especially Reels), TikTok, and YouTube are the leading media platforms for distributing home services video marketing. Each platform supports both short-form and long-form videos, giving local businesses powerful ways to reach and engage nearby homeowners on their favorite apps.

How can I measure the success of my video marketing strategy in 2025?

Measure success by tracking key video analytics: view counts, watch time, engagement (likes, shares, comments), and call-to-action conversions (clicks, quote requests, bookings). Use insights from both your media platforms and AI tool dashboards to see which content brings the most real business results.

Frequently Asked Questions About Video Marketing Trends 2025

  • What budget should I allocate for digital marketing and video marketing trends in 2025? — It depends, but smarter, AI-assisted production means even small businesses can succeed with a few hundred pounds per month. Start small, measure results, and scale up winning campaigns.
  • How can video marketing increase my ROI compared to other marketing trends? — Video builds trust, explains complex services simply, and is proven to convert more online viewers into paying customers compared to static ads or basic text posts.
  • Is user-generated content safer or riskier for home services? — User-generated content is highly effective for trust, but always get permission before sharing customer stories, and monitor for brand-appropriate messages to protect your reputation.
  • What are the best AI video tools for local businesses? — Top picks include Lumen5, Pictory, Animoto, and Canva’s Video Suite, all of which make it easy for non-experts to create and publish polished marketing content.

Key Takeaways: Actionable Tips on Video Marketing Trends 2025

  • Embrace short-form and explainer video content
  • Integrate AI into your video production process
  • Personalize and localize digital marketing efforts
  • Use metrics to adapt your marketing strategy
Expert Roundtable: Predictions & Advice for Video Marketing Trends 2025

Summary: Reinvent Your Digital Marketing Strategy with Video Marketing Trends 2025

Mastering video marketing trends 2025 puts local home service businesses ahead—attracting leads, earning trust, and outpacing the competition. Embrace video, measure results, and watch your local impact grow.

For Help With Your Video Marketing & Local Engagement, Email SmartMarketing@dylbo.com

If you’re ready to take your digital marketing to the next level, don’t stop here. Exploring the broader strategies and future-focused insights in Video Marketing Trends 2025: Stay Ahead or Fall Behind can help you anticipate what’s next and build a resilient, growth-oriented approach. Discover how to future-proof your business, leverage advanced video tactics, and ensure your brand remains a leader as the digital landscape continues to evolve.

To further enhance your understanding of video marketing trends in 2025, consider exploring the following resources:

  • “Top 5 Video Marketing Trends for 2025: What Brands Must Know” by Visual River Media discusses the rise of short-form and vertical videos, the mainstream adoption of livestreaming and interactive content, and the importance of dynamic personalization in engaging audiences. (visualrivermedia.com)

  • “Top 10 Video Marketing Trends for 2025 and Beyond” by Atlassian highlights the increasing prevalence of silent videos optimized for sound-off viewing and the dominance of short-form content across platforms like TikTok and Instagram Reels. (atlassian.com)

These articles provide valuable insights into the evolving landscape of video marketing, offering strategies to effectively engage your audience in 2025.

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Did you know that a hotel’s perceived quality can hinge more on what customers expect than on objective features? This startling insight highlights the powerful role that customer experience context plays in shaping how people perceive and engage with your brand. Understanding this concept can transform the way you design your customer journey, improve your customer experience, exceed customer expectations, and create unforgettable customer experiences. In this article, we'll delve into why context matters more than ever and how to harness it effectively.Startling Insights: Why Customer Experience Context Matters More Than EverThe idea that customer experience context can outweigh even the tangible qualities of a product or service might seem counterintuitive. However, Rory Sutherland of Ogilvy & Mather explains that "the nature of our tension affects the nature of our experience"*. This means what customers expect going in — rather than just what they find — often shapes their overall satisfaction significantly.For example, a hotel once converted from a former police station in East Berlin offered Spartan rooms and a quirky looped TV channel. Instead of being a negative, guests who arrived expecting a conventional hotel were disappointed, but those anticipating an authentic local experience considered it one of their best stays ever. This illustrates how managing expectations is a powerful lever in customer experience context.In today’s competitive landscape, businesses that fail to consider the importance of context risk delivering customer experiences that customers find bland or unsatisfactory, even if technically sound. 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The Competitive Edge of Being Illogical in Business Strategy

Can embracing illogical business strategy unlock unseen competitive advantages? In a world obsessed with logic and rational decision-making, what if the true growth and innovation—but also the secret to sustained business success—lies in deliberately thinking outside the box? This article delves into why illogical business strategy can provide a competitive edge that conventional business strategies often overlook, guided by insights from industry expert Rory Sutherland of Ogilvy & Mather.What You'll LearnWhy conventional logic may limit business innovation and growthHow illogical business strategy can create unique market opportunitiesKey rules to profit from being less logical than competitorsExpert insights on balancing logic and creativity in strategy executionCommon misconceptions about rationality in business decision-makingOverview of Illogical Business Strategy in Modern Business Settings“If a problem is persistent, it’s fairly likely that the reason for the persistence is that it’s logic proof.” — Rory Sutherland, Ogilvy & MatherDefining Illogical Business Strategy and Its Role in Business StrategiesThe term illogical business strategy might sound counterintuitive in a field traditionally driven by data, analytics, and reason, yet it challenges conventional business strategy norms. However, Rory Sutherland defines it as a deliberate departure from the quest for a single “right” answer. Rather than relying solely on rigid logic and aggregated models, this strategy embraces subjectivity, perception shaping, and seemingly irrational ideas to find opportunities overlooked by competitors locked into logic-based thinking. Illogical strategy thrives on creativity, experimentation, and the acceptance that sometimes multiple valid solutions coexist or that the “best” path defies conventional reasoning.In practice, this means creating business approaches that focus on human behavior nuances, emotional context, and adaptive preferences. It leverages psychological insights and reframes value creation beyond what pure economics or engineering might suggest. In the hypercompetitive modern landscape, illogical business strategy isn't chaos but a structured method to unlock untapped market potentials.Why Traditional Business Strategy Often Fails to Deliver Breakthrough ResultsTraditional business strategies often hinge on seeking a single, optimized solution to problems—an approach popular among consultancies and corporate boards alike, but one that can limit innovation in strategy execution. But, as Rory Sutherland articulates, this "logical" search tends to make businesses predictable and confined within a narrow problem framing, limiting innovation and competitive differentiation.By designing with averages or relying only on quantitative metrics, companies frequently miss out on distinctive demands from niche or extreme segments, a common pitfall in many business strategies. Furthermore, competitors tend to converge on similar logic-driven choices, leading to a "race to the bottom" in pricing or commoditisation. Ultimately, when rigidity replaces flexibility, breakthroughs become rare and persistent problems remain unsolved.Interestingly, the rise of artificial intelligence is also challenging traditional business logic, especially in how it shapes opportunities for the next generation of tech professionals. If you're curious about how disruptive technologies are influencing strategic thinking and job prospects, explore how AI is shaping job opportunities for young tech workers for a practical look at innovation in action.The Limitations of Conventional Business Strategy and the Case Against Designing for AverageThe Pitfalls of Seeking a Single Right Answer in Business StrategyOne central flaw in conventional strategy is the obsession with locating a single “right” answer. Rory Sutherland describes how business and policy makers love this approach because it removes subjectivity and protects decision-makers from blame, as decisions can be justified by data or models alone.However, this approach is often disastrous for originality and innovation. It assumes the problem is linear and neatly solvable, which rarely reflects real-world complexity. The fixation on one best answer tends to exclude alternative, less obvious ideas that could disrupt markets or solve stubborn issues more effectively.Why Designing for the Average Customer Can Lead to Dead Ends“Most models cause you to aggregate people so that you’re solving the problem for a single representative individual... That’s a dead end.” — Rory Sutherland, Ogilvy & MatherDesigning products or services around an “average” consumer dilutes innovation. Since the average person rarely fully represents any specific market segment’s desires, attempts to satisfy everyone often end up satisfying no one. Instead, Rory Sutherland advises business leaders to focus on consumers at the extremes—those with distinct, non-average needs. These markets often form the testing ground for novel products that eventually permeate into broader mainstream appeal.Ignoring the extremes constrains creativity and discounts emergent trends. Businesses that stray from average-centric design often discover fresh opportunities and build loyal customer bases less vulnerable to commoditisation.Why Illogical Business Strategy Outperforms Purely Logical ApproachesThe Risk of Predictability in Logical Business StrategyLogical business strategies are inherently predictable—the very characteristic that makes them vulnerable in competitive markets. Rory Sutherland points out that in military or business strategy, predictability equates to defeat. When everyone applies strict rationality, competitors anticipate your moves easily, eroding potential advantages.Being logical when everyone else is logical is a recipe for becoming just another player in a crowded market space. This predictability results in price wars, market share battles, and margin squeezes rather than original value creation or differentiation.Exploiting Competitors’ Logical Blind Spots for Strategic Advantage“It doesn’t pay to be logical if everybody else is being logical... Find out what your competitors are logically wrong about and exploit it.” — Rory Sutherland, Ogilvy & MatherSuccess in business strategy lies in identifying where competitors’ logic oversimplifies or excludes critical factors. For example, in real estate, most people aim for proximity to tube stations—a logic that inflates prices and competition around these hubs. But thinking illogically by targeting railway stations overlooked by most can deliver faster commutes at significantly lower costs.This principle can be applied across sectors: find logical blind spots in market assumptions and exploit them creatively for an undeniable competitive edge.Alchemy in Business Strategy: Creating Value Through Perception and ContextHow Expectations Shape Customer Experience and Business OutcomesRory Sutherland emphasises that value in business strategy is not objective but deeply affected by customer expectations. For instance, he details a hotel in former East Berlin with Spartan rooms and limited amenities. For guests expecting luxury chains like Marriott, this would be a terrible stay. For those seeking an authentic East Berlin experience, it was among the best hotels they've known.This example shows how the “nature of tension”—what customers expect versus what they receive—shapes the perceived quality and satisfaction. Businesses that master controlling expectations and delivering contextually aligned experiences can create wildly different outcomes without necessarily changing the product itself.The Power of Context as a Marketing Super WeaponContext works like alchemy in marketing, transforming mundane products or services into captivating experiences that feel magical to customers. Sutherland calls context a “marketing super weapon” because its subtle influence often bypasses rational evaluation, triggering emotional responses and higher perceived value.Apple is a stellar example: a company built on subjective experience rather than objective superiority, commanding massive market value not just because of product specs but the entire ecosystem, design philosophy, and cultural meaning it creates for users.The Role of Experimentation and Counterintuitive Testing in Strategy ExecutionWhy Testing Illogical or ‘Bonkers’ Ideas Can Yield Sustainable Competitive AdvantagesBusiness environments typically discourage ideas that appear “bonkers” because failure risks are high, yet embracing such ideas can enhance strategy execution and lead to breakthroughs. However, Rory Sutherland argues that this very risk aversion is where businesses lose out on unique, sustainable advantages. Allowing safe spaces for experimentation with counterintuitive ideas enables organisations to discover novel paths competitors avoid.Such bold experimentation often uncovers solutions that logical thinking ignores, especially when persistent problems have resisted conventional approaches. Encouraging trial and error with seemingly irrational ideas can yield breakthroughs that redefine markets.Creating Organizational Space for Risk-Taking Beyond Rational Comfort ZonesLeaders must foster cultures where risk-taking beyond strict logic is safe and encouraged to improve overall business strategy execution. This means empowering teams to think divergently and testing ideas outside rational comfort zones. Rory Sutherland highlights that harnessing human creativity and psychological diversity requires breaking free from narrow model constraints, allowing a wider array of solutions to emerge.Such environments turn “irrational” insights into strategic assets, while competitors stuck to rigid rationality fall behind.Balancing Rationality and Creativity: Using Multiple ‘Clubs’ in Your Strategic ToolkitLimitations of Rationality in Addressing Complex Human MotivationsRationality alone is insufficient to navigate the complexities of human behaviour influencing buying and decision-making. Rory Sutherland likens relying solely on rational analysis to playing golf with just one club; while useful, it drastically limits victory chances.Economic incentives and logic-based models capture only a fraction of the motivations people have. The rest—emotions, cognitive biases, cultural narratives—dance beyond the grasp of simplistic rational strategies. Business strategists must widen their perspective to incorporate these dynamics.Incorporating Psychological and Behavioral Insights into Business StrategiesIntegrating behavioural science insights enables companies to fine-tune business strategies reflecting real human motivations. Illogical business strategy embraces these nuances, adapting incentives, communications and product designs to better resonate emotionally and culturally.This integration improves engagement, loyalty, and even product utility by respecting the unpredictability and diversity of customer needs and responses.The Power of Small, Trivial Changes in Complex Business SystemsHow Minor Interventions Can Trigger Butterfly Effects in Business OutcomesContrary to the common economic assumption that big changes require big investments, Rory Sutherland points out that trivial, small-scale adjustments often produce outsized effects in complex systems, much like butterfly effects in chaos theory.These minor tweaks—such as altering a marketing message slightly or changing the order of procedural steps—can ripple through organisational processes or customer perceptions, producing exponential business impact. Ignoring trivialities risks missing these powerful levers.Examples of Trivial Adjustments Leading to Significant Competitive GainsFor example, Sutherland shares a personal anecdote about electric car grants requiring customers to first own the vehicle before qualifying for a charging station subsidy. This illogical rule blocks many potential buyers. Simply reversing the order could accelerate adoption dramatically — a small change with likely huge impact.Similarly, adding a single sentence to a call centre script might widen throughput bottlenecks more effectively than expensive, large-scale interventions.Expert Insights: Quotes and Lessons from Rory Sutherland“Debt looks stupid. One of the simplest ways to solve a problem is to ask a question that no one’s asked before.” — Rory Sutherland, Ogilvy & Mather“Context is a marketing super weapon, and it works because it works magically.” — Rory Sutherland, Ogilvy & MatherCommon Misconceptions and Mistakes in Applying Illogical Business StrategyMisunderstanding the Role of Logic Versus CreativityA key misconception is that illogical strategy negates logic entirely. In reality, it balances logic with creativity—using logic to define parameters but creativity to stretch beyond limits, unlocking new value spaces without abandoning rational decision-making entirely.Avoiding Over-Reliance on Rational Models That Limit Solution SetsOver-dependence on rigid models creates tunnel vision and excludes unexpected solutions. Businesses must remain aware that models simplify reality and should be complemented by iterative experimentation, hypothesis testing, and openness to serendipitous discoveries.Tables: Comparing Logical vs Illogical Business StrategiesAspectLogical Business StrategyIllogical Business StrategyApproachSeeks single right answerEmbraces multiple good ideasCustomer FocusDesigns for averageTargets extremes and nichesRiskPredictable, competitive parityUnpredictable, competitive advantageInnovationLimited by modelsEncourages experimentationOutcomeRace to bottomCreates unique valuePeople Also Ask (FAQs)What are the 5 P's of business strategy?The 5 P's are Plan, Ploy, Pattern, Position, and Perspective. Each represents a different dimension from planning to viewing strategies as emergent patterns or competitive maneuvers.What are the 4 types of corporate strategy?The main four types include Growth, Stability, Retrenchment, and Combination strategies, each aimed at different business conditions and goals.What is a downside to an unethical business strategy?An unethical strategy risks reputational damage, legal penalties, loss of customer trust, and long-term sustainability.What are the 3 C's of business ethics?They refer to Compliance (with laws), Conduct (moral behavior), and Culture (organizational environment fostering ethics).Key TakeawaysIllogical business strategy challenges the dominance of conventional logic to unlock innovation.Designing for extremes rather than averages can reveal untapped market opportunities.Experimentation with counterintuitive ideas fosters sustainable competitive advantages.Small, seemingly trivial changes can have outsized impacts in complex business systems.Context and perception are powerful tools that can create value beyond objective improvements.Conclusion: Embracing Illogical Business Strategy for Future SuccessDare to think beyond logic. Embrace experimentation, context, and perception to unlock breakthrough innovation and resilient competitive advantages in today’s complex market environment.If you’re inspired to rethink your approach to business strategy, consider how the principles of illogical thinking can be applied to broader trends shaping the future of work and innovation. The intersection of technology, creativity, and unconventional problem-solving is rapidly redefining what it means to gain a competitive edge. For a deeper dive into how these forces are transforming opportunities for the next generation, especially in the tech sector, take a look at the evolving impact of AI on job opportunities for young tech workers. Exploring these insights could spark your next breakthrough or help you future-proof your business in a world where logic alone is no longer enough.Call to ActionFor Help to Show Your Business in Action, Email SmartMarketing@dylbo.comSource: https://example.comIn exploring the concept of illogical business strategies, two insightful resources offer valuable perspectives:“The Icarus Paradox” by Danny Miller examines how companies can fail due to the very strategies that once led to their success. This work highlights the dangers of overconfidence and complacency, underscoring the need for businesses to remain adaptable and open to unconventional approaches. (en.wikipedia.org)“The Strategy Paradox” by Michael E. Raynor delves into the inherent uncertainties in strategic planning. Raynor discusses how rigid adherence to a single strategic path can be perilous, advocating for flexibility and the consideration of multiple future scenarios to mitigate risks. (en.wikipedia.org)If you’re serious about enhancing your strategic approach, these resources provide critical insights into balancing logic with creativity to achieve sustainable success.

01.02.2026

Why Designing for the Average Customer Can Kill Innovation

Startling fact: Most products fail to truly delight because they are designed for an "average" user who doesn't exist in reality. Instead, innovation blooms when businesses step away from trying to please the average and focus on the extremes. This approach challenges conventional logic and offers fresh pathways to user experience design.Opening Hook: The Hidden Cost of Designing for Average Users and Its Impact on InnovationDesigning for average users is a widespread practice in business and product development, but it carries a hidden cost: innovation suffers. By targeting a mythical average, companies often create bland and uninspiring products that fail to excite or satisfy anyone fully. Rory Sutherland, Behavioral Economics expert at Ogilvy & Mather, highlights a crucial insight — “Conventional logic loves the idea of the single right answer... If you want to have an original idea, it's potentially disastrous.”This fixation on finding a single solution that fits everyone results in mediocrity, as no real users fit neatly into this ‘average’ persona. Instead, products risk becoming generic, lacking uniqueness or standout appeal. For business owners aiming to differentiate their brand, grasping the pitfalls of designing for average users is vital to unlock new opportunities.What You'll Learn: Key Insights on Designing for Average vs. Extreme UsersWhy designing for average users limits innovation and market successHow focusing on extremes can lead to breakthrough productsThe psychological and strategic pitfalls of conventional logic in designExpert perspectives on embracing irrationality and creativity in businessUnderstanding the Pitfalls of Designing for Average Users and How to Avoid ThemThe Myth of the Single Right Answer in Business and DesignThe business world often prefers clear-cut answers and measurable success metrics, fostering the belief that a single, logical solution exists for every problem. Yet, Rory Sutherland warns that the pursuit of this "single right answer" often kills creativity: "Business and policy making loves the idea of the single right answer... If you want to have an original idea, it's potentially disastrous." This mindset restricts innovation and encourages risk-averse, derivative products designed to appeal to a statistically average user.Appealing to an average customer leads to decisions grounded in aggregated data, smoothing out individual preferences and unique needs. The ‘average user’ concept risks trapping design solutions within a narrow band of possibilities, where no particular customer feels truly catered for. For example, a software designed solely around average user metrics may lack features that delight power users or novices, reducing overall user satisfaction.Interestingly, the challenge of designing for diverse needs is not limited to product development—it's also evident in how emerging technologies are reshaping the workforce. For example, AI is influencing job opportunities for young tech professionals, highlighting the importance of adapting strategies to serve both mainstream and niche talent segments.Why Aggregating Users into an Average Persona Fails InnovationAggregating diverse users into a single average persona ignores the wide variation in user needs, preferences, and behaviours that exist in any market. Rory Sutherland points out that "Most models cause you to aggregate people so that you're solving the problem for a single representative individual," which often results in products nobody truly loves.Designers who focus on the average risk missing important niche segments that could be early adopters or influencers. For instance, products aimed at gym enthusiasts tend to fail when designed only for average fitness levels rather than targeting the high-performance or beginner extremes. Embracing user diversity better equips businesses to develop unique propositions and competitive advantages.Competitor Insight: The Limitations of Designing for the Average UserCompetitors caught in the trap of designing for a median user often face stagnant growth and thin differentiation. Whereas competitors who embrace niche markets and diverse needs innovate faster and capture passionate followers. Rory Sutherland advises spotting where competitors’ logic errs and exploiting those gaps: "Find out what's wrong with their model and exploit it." This approach transforms design from a safe, but uninspiring activity, into a dynamic driver of growth.The Power of Designing for Extremes: Unlocking Innovation and Market SuccessHow Extreme User Needs Drive Mainstream AdoptionDesigning with extreme users in mind can uncover revolutionary ideas that eventually appeal to the mainstream. Rory Sutherland explains: "Look out on the extremes, however, and you may find things that will be adopted by extreme or unusual consumers, which then make their way into the mainstream." This approach harnesses unique user challenges and preferences as innovation catalysts rather than obstacles.By appreciating the needs of outliers, businesses can develop products that break mold and set new standards. Examples abound, such as rugged smartphones developed for extreme conditions becoming popular for everyday use, or accessibility features enhancing usability for all. Designing for extremes thus serves as a strategic seedbed for broader market impact.Case Study: Innovative Products That Emerged from Non-Average User FocusConsider the example of electric cars and charging stations. Initially, electric vehicles were designed for niche green consumers but rethinking user needs beyond average assumptions has made them increasingly mainstream. Rory Sutherland identifies that “small, trivial changes” in design or process order can have outsized impacts — such as reversing the order of grant applications for chargers, which can affect adoption significantly.Similarly, Airbnb’s rise emerged from understanding travellers and hosts who fall outside traditional hotel user averages. This enabled a new market segment formed around trust, unique stays, and local experiences — a sharp contrast to average user-based hotel design. Businesses adopting extreme user focus discover new growth trajectories unreachable via averaged strategies.Why Logic Alone Can Stifle Creativity and Innovation in Product DesignThe Danger of Predictability in Business StrategyLogic-driven strategies, while seemingly sound, often lead to predictability. Rory Sutherland highlights: “It doesn’t pay to be logical if everybody else is being logical... Being logical will probably get you to the same place as everybody else, and that’s essentially a race to the bottom.” Predictability reduces competitive differentiation and innovation, capping growth potential.In highly competitive environments, being too rational and formulaic limits fresh thinking and adaptation. Truly innovative companies balance logic with creative irrationality to defy expectations and open new market spaces. This mindset shift helps avoid the trap of conformity that comes with designing solely for average user models.Exploiting Competitors’ Logical Blind SpotsBusinesses gain an edge by identifying flaws in competitors’ logic and models. Rory Sutherland offers a practical example: “If you want to buy a house in London, nearly everybody goes, I want to be near a tube line... But nobody’s thinking about rail stations which can offer better value and shorter commute times.” This indicates how stepping outside conventional logic reveals unmet needs and opportunities ignored by others.Capitalising on these blind spots requires curiosity and courage to break established norms. Rather than follow existing average user assumptions, exploring alternative logic and user behaviours leads to genuine breakthrough innovation and stronger market positioning.Embracing Irrationality and Magic in User Experience Design to Enhance EngagementHow Perception and Expectation Shape User ExperienceUser experience is not only about objective product features but also about perception and expectation. Rory Sutherland shares an insightful example of a hotel in former East Berlin, which guests either loved or hated depending on their expectations. “Whether a restaurant or a hotel is good or bad doesn't just depend on what the hotel is objectively, it depends on what we expect the hotel to be like.”This highlights the power of framing and storytelling in shaping user satisfaction. Designing experiences that align with or cleverly manage expectations can deliver magical outcomes, often outperforming purely functional improvements.Context as a Marketing Super WeaponContextual factors dramatically influence user perceptions and purchase decisions. Rory Sutherland emphasises, “Context is a marketing super weapon, and it works because it works magically.” By crafting environments, narratives, and brand stories around products, businesses can amplify value beyond tangible features.This ability to create perceived value through context differentiates successful products and services in crowded markets. Recognising this allows designers and marketers to incorporate psychological “magic” into their offerings, enhancing user delight and loyalty significantly.The Role of Costly and Creative Advertising in Conveying MeaningSutherland critiques the efficiency obsession in advertising, stating “advertising works because it’s costly to deliver, costly to generate, and displayed indiscriminately.” Much like nature’s flowers which evolved costly displays to attract pollinators, advertising effectiveness depends on creative extravagance rather than mere efficiency.For businesses, investing in rich, emotional advertising can powerfully communicate brand meaning and differentiate in the user’s mind, transcending the limits of purely rational design approaches.Practical Steps to Avoid Designing for Average: Let Us Innovate Differently and Embrace User DiversityAllowing Space for Counterintuitive and ‘Bonkers’ IdeasInnovation thrives when organisations permit testing of counterintuitive ideas that may initially seem irrational or ‘bonkers.’ Rory Sutherland explains the significance of creating permission spaces for experimentation: “You can enjoy an extraordinary competitive advantage in your business if you create a small space where people can test things that don’t make sense.”This mindset combats the risk-averse corporate culture that tends to shut down unconventional thinking. Embracing this freedom accelerates discovery and uncovers hidden solutions that competitors avoid.Testing Small, Trivial Changes for Big ImpactSmall, seemingly trivial design changes can yield disproportionate benefits in complex systems. Sutherland observes: “Adding a single sentence to a call center script…has a bigger effect than much bigger things.” Businesses should invite low-risk experiments with minor tweaks that might unlock major performance improvements or user satisfaction gains.Encouraging Adaptive Preference Formation in Product ChoicesAdaptive preference formation allows users to reframe compromises as positive choices rather than losses. Rory Sutherland illustrates how enabling multivariate choices with balanced upsides and downsides can minimise regret and increase satisfaction. Designing decisions that support this psychological mechanism creates net added value from otherwise neutral or suboptimal options.Comparison of Design Approaches: Average User vs. Extreme User FocusAspectDesigning for Average UsersDesigning for Extreme UsersInnovationLimited due to homogenised featuresHigh potential through niche focusUser SatisfactionGenerally mediocre for all usersStrong for targeted segments, trickling to mainstreamMarket DifferentiationLow; products appear genericHigh; unique product offeringsRiskLower short-term, higher long-term stagnationHigher short-term, greater growth opportunitiesDesign FlexibilityRigid, constrained by average metricsAdaptive, embraces diverse needsCommon Misconceptions About Designing for Average UsersAssuming one-size-fits-all solutions maximise efficiencyBelieving rationality always leads to the best outcomesIgnoring the power of narrative and perception in user satisfactionFAQs: Addressing Common Questions on Design Efficiency and ProcessWhat are the 7 steps in the design process?The seven fundamental steps are: research, definition, ideation, prototyping, testing, implementation, and evaluation. Each stage refines understanding of user needs and iterates solutions to better match those needs, mindful that average assumptions should be challenged throughout.What is the efficiency of design?Efficiency in design means achieving the greatest user satisfaction and business impact with minimal resource expenditure. However, efficiency does not equate to designing for average users: true efficiency balances creativity, user diversity, and effective resource use.How to create a perfect design?Perfect design is a myth as user needs are diverse and context-dependent. Instead, aim for designs that solve core problems creatively, accommodate diverse user profiles, and adapt over time. This approach embraces imperfection as a pathway to continuous improvement.Key Takeaways: Why Designing for Average Users Limits InnovationDesigning for average users often leads to uninspired, ineffective products.Focusing on extreme or niche users can spark innovation and broader adoption.Logic and rationality have limits; embracing creativity and irrationality can unlock new solutions.Small, seemingly trivial changes can have outsized impacts in complex systems.User perception and context are critical components of successful design.Conclusion: Dare to Design Beyond the Average“If there were already a logical answer, we would have already found it... The problems that persist are logic proof.” – Rory Sutherland, Ogilvy & MatherChallenge conventional wisdom by daring to reject the average and let us explore innovative design approaches. Embrace extremities, creativity, and the magic of perception to uncover untapped innovation and delight your users.If you’re inspired to push beyond the boundaries of average thinking, let us consider how these principles apply not just to product design, but also to the evolving landscape of work and technology. The rise of AI is a prime example of how innovation can disrupt traditional models and create new opportunities for those willing to adapt. For a deeper dive into how emerging technologies are transforming career paths and what it means for the next generation of professionals, explore the insights on AI’s impact on job opportunities for young tech workers. Discover how embracing change and thinking beyond the average can unlock new avenues for growth and success in your business or career.Call to ActionFor Help to Show Your Business in Action, Email SmartMarketing@dylbo.comSources: https://example.comDesigning products for the “average” user often leads to mediocrity and fails to meet the diverse needs of real users, so let us rethink design strategies to foster innovation. The article “Why Designing for the Average Will Result in the End Product Being Less than Average” (equitusdesign.com) discusses how this approach can result in generic offerings that lack distinctive features, ultimately compromising user satisfaction. Similarly, the piece “The ‘Average’ Fallacy” (uxmag.com) highlights the misconception that designing for an average persona can effectively serve the majority, emphasizing that no single user embodies all average characteristics. By understanding these pitfalls, businesses can shift towards more inclusive and innovative design strategies that cater to a broader spectrum of user needs.

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