From Jobs to Bezos, Snap changed his idol

2020-08-02 09:36:20 0 Comment 1420 views

At that time, Snap was at a historical low, with its market value falling from 30 billion US dollars to 8 billion US dollars, and the stagnation of us

From Jobs to Bezos, Snap changed his idol

From Jobs to Bezos Zos, from making products to making companies.

© ️ rummage book original

Author: Zhu Xingyu Producer: Pan chaos

In early multi-flash conference, made a bold rummage book Guess: Toutiao may acquire Snap.

At that time, Snap was at a historical low. Its market value fell from US$30 billion to US$8 billion. User growth stagnated and commercialization was invisible. The US media discussed Snap’s headline as "How did Snap become Twitter", and "Snap will be acquired in 2019".

Twitter, which was first predicted by the media to be "dying", gradually completed its recovery in 18 years, and Snap reversed the decline in user data and revenue in Q1 this year, and its stock price has risen so far.170%, reaching 20 billion US dollars.

Twitter and Snap, the difficult brothers and sisters, restarted their growth after being looked down upon. The logic behind them is quite similar: Clarify strategic goals, change organizational culture, increase revenue and reduce expenditure for commercialization, and benefit from Ins/FB The commercial realization of Stories has lowered the advertising threshold for advertisers, and revenue data has been improved.

Interestingly, Twitter CEO Jack Dorsey and Snap CEO Spiegel were once fanatical Steve Jobs believers. After Jack Dorsey was forced to step down as Twitter CEO in 2009, he created his own "Jobs second generation" image. And Spiegel never concealed his admiration for Jobs, and he hung a portrait of Jobs in his office.

Jack Dorsey, who returned successfully, failed to save the company by relying on a genius product design, and began to grow a beard in his image, distinguishing him from the image of "Jobs II"; the media is reporting on Spiegel At this time, an obvious sign is that Snap has more of Amazon as its learning object. "The only person Spiegel wants to work for is Bezos." At present, the word "C" in Snap has an 8-digit high. Three of them are from Amazon.

From Jobs to Bezos, Snap changed his idol

From Jobs to Bezos, from making products to making companies.


The problem with Snap

The changes in Snap over the past year and a half have been quite ups and downs.

In the article "Surely Bears on Snap" in November 2017, I explained the three problems Snap faced at the time:

  • The era of product-driven past了: The product is just a shell. Without internal power, the product itself is not a moat. A good company will not be easily copied to death. Product-level competition can easily be copied. Facebook has been frantically integrating Stroies into various products, and Snap has no good response;

  • The product has no advertising space, and cannot accumulate content: only accumulate relationship Without precipitating content, it is destined to be difficult to sell ads, and Snap's commercial monetization ability is very poor. With the number of users ahead of Twitter, the revenue is less than one-third of the latter;

  • The corporate governance structure is too bad: The first thing the founder did after the company’s financing was to move the office to the beach. The company’s market value fell by 60% while the founder was still in Paris. Have a wedding with a model.

When Snap went public in early 2017, user growth had begun to show signs of decline. Snap is now in EuropeAmerican teenagers have a very high share of users, and the subsequent user growth will either follow geographic generalization or age generalization. However, the launch of Ins Stories in the same period basically blocked the possibility of age generalization and dispelled the motivation of hundreds of millions of users even to try to use Snap.

At the end of 2017, Snap CEO Spiegel came to China to learn from Kuaishou and Toutiao, talked to Su Hua and Zhang Yiming, and launched a major product revision in November to strengthen short video content Consumption: Display the Stories sent by your friends directly on the IM interface and click on your friends' avatars to play them; put the content of professional content producers on the Discover interface on the right; calculate the friends you interact with the most through the algorithm and highlight them as "Best Friends".

From Jobs to Bezos, Snap changed his idol

After this revision, the left side of the product is friends’ sharing + discussion + content consumption, on the right side It is the consumption of professional content, and content consumption is given a high weight. However, Snap is still an IM background after all. When users come to Snap, they first chat with friends and send fun photos, and then watch friends dynamically consume content. The user's normal IM I was disturbed, which caused strong negative feedback. This version received 83% of AppStore bad reviews.

The revision was fully promoted by Spiegel to all users, and the negative impact soon appeared: DAU, which was still slowly growing, turned around and fell, and a large number of negative comments slowed down advertisers’ advertising decisions, and revenue was also affected. 1Q18After the quarterly report was released, the stock price fell 19% in late trading. The bleak prospects of the company brought about a wave of Snap executive resignations: After the 1Q18 quarterly report was released, the CFO resigned, and the two CSOs resigned in January and September. In 18 years, 11 VPs left.

Spiegel reflected on this revision in the company memo afterwards:We hurriedly redesigned, solved one problem, but created many other problems ...Unfortunately, we did not give ourselves enough time to iterate and test our changes from a small range of users, which caused many setbacks in the community.

The previous Spiegel didn’t like the A/B Test method at all, didn’t believe in the effect of the test, and preferred to subjectively fine-tune some of the upcoming new featuresUntil it is deemed appropriate to publish. According to a report by The Information in March 2017, Spiegel believes that the "from the heart" way of creating products is the key to Snap's ability to resonate with users and continue to grow.

This is entirely a Jobs-style product development idea. The Superman CEO has a deeper understanding and insight into users, and solves the pain points that users have not found themselves through cross-age product design. This is Apple’s renaissance: the introduction of the iPod has subverted the music industry, and the introduction of the iPhone has subverted the human-computer interaction of all mankind; this is also the early development path of Snap: Spiegel's precise insight into the needs of young people through "reading The low sharing threshold of "Later Burn" and Stories has broken through young users.

This development idea has brought the company in SnapStrict internal information confidentiality and top-down high-pressure management. Description of former employees:The company operates under the condition of "you need to know", and internal parties cannot even share each other’s work . Snap hardly holds all-hands meetings. Executives rarely raise questions to discuss future products. Many employees first learn about new Snap products by reading the news.

Snap has become the first IPO in history to issue shares without any voting rights. The founders Spiegel and Murphy hold 96% of the voting rights. This product development culture made Snap a $30 billion company, and at the same time made Snap powerless to resist the massive invasion of FB, and brought various negative feedbacks about the failure of product revisions: falling product data, stock pricesEndless declines, executives continue to leave...

The era of relying solely on intuition to drive products has passed.


Snap's revival

By the second half of 2018, the market and media felt that Snap is completely out of play. Changing the version back in May failed to reverse the decline. Users and revenue still did not improve. News of executives leaving one after another. The media is discussing: Which company may receive Snap?

The landmark event of the transformation occurred in September 2018. Spiegel internally released a 6500-word memo to reflect on the company’s products and strategic issues. , Admit mistakes straightforwardly, and put forward a vision for the future:

  • Clarify the core value of the company’s products:The fastest way to communicate; the revision makes it difficult for users to find the right person and talk, and the untested release leaves us no time to optimize, we need to put users in the core position;

  • Introduce the OKR process as the company’s management system, accelerate the flow of internal information, and align the upper and lower goals; Spiegel’s 5 Os are: Let Snap become the fastest way of communication; find good friends for all Snap users; achieve annual profitability; become an AR leader; spread enthusiasm.

The memorandum involves all aspects of the product. The most noteworthy thing is the change and clarity of the company’s organizational culture and core values. Snap changed from the original closed information to more open Management model.

publicThe company’s core management has also undergone major changes. Executives from Amazon have been vigorously introduced: There are currently 8 "C" executives on the official website, and 2 of them are founder Spee. Geer and Robert Murphy, one is the older general counsel, the chief human resource officer CPO and the chief strategy officer CSO are from AOL, and the remaining three are from Amazon. They are the current CFOs who joined in July 2018 (formerly Amazon Finance VP), the current CBO (former Amazon Global Advertising Sales Director) joined in November 2018, and the engineering SVP (former Amazon Infrastructure VP) joined in November 2016.

From Jobs to Bezos, Snap changed his idol

The adjustment soon gave positive feedback on the company’s data. According to the 19Q1 financial report and financial report meeting, the company’s DAU began to resume growth, and at the same time began to exert efforts on the commercial side:

  • The sales team's organizational structure was reorganized, from geographical division to industry division, and three sales systems were divided into major accounts, performance advertising and service development teams. The former McDonald’s marketing VP joined the team;

  • Performance advertising has begun to exert its strength, and the revenue of effect advertising has doubled in 18 years; the self-made advertising platform built in two years has begun to enter the use period, which will help the continuous expansion of advertisers; Launched Snap Ad Network and Snap Kit open platform;

  • Benefit from the commercialization of Instagram Stories, advertisers vigorously use shortThe form of video advertising has solved the educational problem of advertisers for Snap, and the formed video materials of advertisers have begun to be put on Snap.

On the product side, we have introduced professional original content Snap Original since last year, and launched more than ten vertical screen short dramas/Live show, relying on purchased content to increase user time and increase ad inventory of video ads; the recently launched Snap Game game platform will also play a similar role; AR innovation Continue to introduce, the Landmarkers/AR Bar/Scan function has been launched successively. Android end excellentInternationalization continues, and efforts are made for international growth.

From the data trend, the number of daily active users of Snap has turned around, and the ARPU of users has continued to increase, resulting in revenue growth, operating efficiency has increased, and gross profit margin has increased, and business has shown signs of continuous improvement, which is a good trend. Promoting long jumps into the stock market has driven the stock price to more than double this year.

From Jobs to Bezos, Snap changed his idol

From now on Look, Snap’s core problem in generalization still needs to be solved. Whether better business realization requires continuous iteration of products, but from the company itself, it does become healthier, relying on the mental occupation of young people to continue to stand Nice location.

The best time to acquire Snap has passed.