Watch the following video, in which Snap CEO Evan Spiegel [1] talks about the Snapchat update, then read on below and follow the instructions to complete the exercise.
Snapchat case study
In 2017, Snap, the parent organisation of Snapchat, went public [2] and nine months later, CEO Evan Spiegel, announced that Snapchat would undergo a significant redesign. Among the many changes, the redesign entailed separating celebrity content from one’s friends and close connections. It also entailed several updates to make the app easier to use.
However, Snapchat users did not receive the changes well and so, after continued and growing criticism, Snapchat eventually rolled back some of the updates. This redesign cost Snapchat many of its customers and Snapchat has since seen a steady decline in customers.
In response to the product’s alleged redesign failure, Spiegel acknowledged that users were frustrated over the updates and revealed that the design felt rushed. [2] While the update solved one problem, it subsequently created many others. He further acknowledged that the product improvement plan was also complicated by the fact that Snap had gone public. In other words, going public had meant more stakeholders to manage, align, and get buy-in from. Since the redesign, many of Snap’s executive-level employees, such as its chief strategy officer, left after the public disapproval of the redesign.
However, Spiegel claims that ‘innovation really is about taking risks. It’s about doing things that are different’. [2] He explains that this thinking is encouraged at Snap so that employees can take risks each day and not feel at risk of being judged. He goes on to say that they make time for employees to connect in small groups and share their ideas. Through this type of thinking and these practices, Snap makes continuous improvements over time.
Instructions: Key lessons from Snapchat
- Post a brief reflective paragraph in the discussion below that answers the following question: What key lessons can we take away from this real-world example? Make sure you cover topics such as:
- What mistakes did Snapchat make with regards to its product improvements?
- How should communication have been handled?
References
- The New Snapchat in 60 Seconds [Video]. Snapchat; 2017 Nov 30. Available from: https://www.youtube.com/watch?v=nx1R-eHSkfM
- Yurieff K. Snapchat always proved critics wrong. Then Evan Spiegel pushed for a redesign – CNN [Article]. Edition; 2019. Available from: https://edition.cnn.com/2019/03/10/tech/snap-ceo-evan-spiegel-profile/index.html
Snapchat first of all engaged in a lot of changes at the same time. This makes the new experience totally strange to customers. Secondly they didn’t carry the customers along through testing and experimental phase to get reviews. Lastly even after complains, they didnt seem to address all. They rolled back some of the updates.
The Snapchat redesign serves as a cautionary tale for product managers and companies looking to make significant changes. Key lessons include the importance of user feedback and testing before rolling out major updates. Snapchat’s failure to adequately gauge user sentiment and test the redesign led to widespread criticism and a loss of customers. Effective communication is also crucial; Snapchat should have clearly explained the rationale behind the changes and managed expectations. Furthermore, the company underestimated the impact of going public, which added complexity to the decision-making process. On the other hand, Snap CEO Evan Spiegel’s emphasis on risk-taking and innovation is a valuable lesson in encouraging experimentation and creativity. By fostering a culture that allows employees to share ideas and take calculated risks, companies can drive continuous improvement and innovation. Ultimately, striking a balance between innovation and user needs is essential to maintaining customer trust and loyalty.