Today I am sitting back and admiring all of the hype google has created with their launch of Wave, an online collaboration tool. There are a few ways to get your hands on a copy of Wave, none of them particularly easy. The best bet is to score an invite from someone who already has it. Requests for invites have been flying around, particularly on Twitter. Some have even tried to buy their way into the free service.
So Google is doing it again: turning exclusivity into demand through manufactured scarcity, by limiting the number of downloads and selecting certain channels of acquisition. They did the same thing with Gmail when it launched a few years ago. It’s a brilliant strategy. Why don’t more outfits try this? Are they just not sophisticated enough? Or do they lack the cajonnes to tell potential consumers ‘no, you can’t have it yet’, possibly making them just leave? Another organization to effectively cultivate (and communicate) exclusivity is TED.com.
Three things are certain though:
First, people often tend to want what they can’t have. Or at least enough people want it to create a nice early buzz at launch.
Second, in the age of free, instant availability it sometimes pays to take a differentiating approach.
And third, what google is doing is a confident move, not to be copied by organizations unsure about their position or offering. Confidence is attractive. Another tick for google.
It’ll be interesting to check out Wave when it finally gets around. Until then, I’ll just watch the roll out in admiration.
B
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{ 2 comments… read them below or add one }
What Google is also doing by this manufactured scarcity is ensuring that their nascent systems don’t get too overloaded.. it’s a smart way to test the system while giving the world a semblance of availability while controlling the user base at the same time.. even the invites being sent by current users aren’t reaching those invited.. as Google puts it very smartly, they’ve got too many stamps to lick :)
[Reply]
As Rahul said, the scarcity is a by-product of the beta-testing phase.
By only working through invites, Google gets a group of “beta testers” who are more likely to condone errors and provide good feedback. The “beta testers” are good, to Google, because, in general, (a) they’re genuinely interested in the product or they wouldn’t be invited; (b) at the beginning, they’re friends of Google employees and friends of friends of Google employees (that’s where the first invites come from), and so they feel they have a stake in Google’s success; (c) they’re more computer-savvy.
“Manufactured scarcity” is a bit of a compliment: the scarcity is not manufactured at all. If Google opened up Wave today, the servers would probably all crash. Aside from turning off a bunch of potential users, it would be extremely difficult to actually bring the system back up without revoking user accounts.
I’m not even sure if Google pioneered the invite system. Other companies replicate it; it’s standard practice for an Internet product when demand outweighs supply. The trick is, most products come from start-ups who don’t have nearly the same levels of demand and who we don’t normally hear about. Google is a bit of a lone wolf when it comes to Internet hype.
[Reply]
Brendan Reply:
October 8th, 2009 at 10:38 am
Thanks for the corrections, guys!
I still maintain that the exclusivity is significantly helping Google though. There are many other examples. Popular Christmas gifts are a prime example, as deman often outstrips supply, creating even more demand in turn. When people can’t have something, they want it more.
Why can’t other start-ups do it? Well, you certainly need some traction, and definitely some reputation.
One of the main purposes I write on this blog is to learn about things from people who know better. I’m filing this post under this category!
Thanks,
B
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