Creating Ecosystems Builds Core Drive 8: Loss & Avoidance
This article was written by Erik van Mechelen based on the Octalysis Framework by Yu-kai Chou.
About the Creator of the Octalysis Framework
Yu-kai Chou created the Octalysis Framework after studying gamification since 2003 — years before the term entered mainstream vocabulary. As a Human-Systems Architect & Behavioral Designer, his framework has been applied by LEGO, Microsoft, Porsche, Coca-Cola, Salesforce, and MrBeast, impacting over 1.5 Billion Users.
Chou has taught the Octalysis methodology at Harvard, Stanford, Yale, Tesla, Google, BCG, and IDEO.
His work has been cited by Harvard, Stanford, MIT, Forbes, Wall Street Journal, Wired, US Department of Energy, NIST, NSF, NCBI, US Department of Education, ClinicalTrials.gov, and 3,700+ more academic publications. Explore his books here.
Ecosystem influence and convenience
Many are familiar with Amazon’s or Apple’s or Google’s exhaustive ecosystems and their network effects.
Amazon’s product offering grows larger by the day. Using Gmail/Chrome gains you refined experiences. Apple products sync across devices and services like iTunes.
These effects help to create Core Drive 8: Loss & Avoidance in the eyes and hearts of their consumers. If I leave, I’ll lose the entire ecosystem experience.
Non-intuitive brands like Nike play with this too when they introduced their fitness products: loyal Nike brand followers used their products instead of Fitbit’s offerings because Nike’s products worked with their Nike running shoes and gear.
Samsung is doing similar with its camera and recording products.
Workplace messaging
Consider the competition for the workplace messaging space. Let’s hone in on Slack and its new competitors, Microsoft Teams and Facebook’s Workplace.
Interestingly, Microsoft’s product looks similar to Slack’s. Why? It wants to make it easier for people to switch.
Not only does it sync with OneDrive and other Microsoft products and services. It looks and feels just like Slack, so you’ll have no worries and a better experience.
Meanwhile, Facebook’s Workplace will make sense to many businesses who already have a Facebook page and presence. Instead of logging in to a new experience on Slack, they can direct their teams and customers to their messaging solutions right there in Facebook.
From Slack’s perspective, they might do well to change the frame. Reacting to the big boys is tough though. If they keep their brand sense and elevate loyal companies and users (elitism) they could retain their footing.
Entering a market
Companies hoping to enter new markets should absolutely account for the context of competitors.
Almost any product by definition enters an existing market (there are few untapped markets… and there is a good reason to enter existing markets, the primary reason being there are customers there already).
Consider Amazon’s latest market entrance: music. With Amazon Music Unlimited, they offer pretty much the same thing as Apple or Spotify but tout that a customer will save $40 over Apple or Spotify annually.
Because the product is the same, they can directly appeal to Core Drive 4: Ownership & Possession and compete on price.
Not everyone is Amazon
Apple spent on Brand to make us “think different,” while Under Armour showed how a small brand could elevate itself to compete with the big boys like Nike through creative emotional appeals to the underdog mentality, playing on Core Drive 2: Development & Accomplishment.
Never underestimate the power of branding. People bought and buy Under Armour because they believe that David can defeat Goliath sometimes, and they want to be that David.
Carving a place amongst the competition
Between direct and indirect competitors and alternative solutions for a given customer need, it is difficult to create a niche or maintain a power position as an incumbent.
By constantly analyzing the Octalysis Framework Core Drives at the heart of your product and service experiences, you can.
Related Reading
- The Octalysis Framework for Gamification & Behavioral Design
- Core Drive 8: Loss & Avoidance
- Anti Core Drives: What Pulls Us Away
- Why Foursquare Failed (and Pokémon Go)
- What is Gamification?
- Books by Yu-kai Chou