5.13 Practical activity 6: (Product Mgt Course) Learning from Snapchat’s failure

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

  1. 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

  1. The New Snapchat in 60 Seconds [Video]. Snapchat; 2017 Nov 30. Available from: https://www.youtube.com/watch?v=nx1R-eHSkfM
  2. 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
5.13 Practical activity 6: (Product Mgt Course) Learning from Snapchat’s failure

142 thoughts on “5.13 Practical activity 6: (Product Mgt Course) Learning from Snapchat’s failure

  1. What mistakes did Snapchat make about its product improvements and what key lesson can we learn from it?
    Product improvement is expected to bring some kind of nostalgia and unforgettable experiences for the users of the product and in most cases, redesign is done in response to user feedback, indicating that the company is actively working to address concerns. On the contrary, the Snapchat redesign brought frustration, as some users expressed their frustration over the changes in the app’s interface and functionality. Whether the redesign was a mistake or not is subjective as it depends on the user’s preferences and experiences.
    Noticeably, the redesign:
    • Removes advertisements from the content feed which was not in the interest of the advertisers
    • Moved advertisements to a separate feed which led to a decrease in the value of the account to the advertiser and by implication drove cost-per-action prices up.
    • Targeted young people, hence an attendant drop in the advert placement
    • Did not make room for the third-party plugin, hence users cannot add functionality not present in the app
    • Made a drastic change to the user interface and this led to wide criticism of the app
    • Combines stories with snaps thus confusing the users
    • Did not appeal to influencers/celebrities who questioned the relevancy of the app, and this led to a drop in market valuation
    How should communication have been handled?
    When rebranding, renaming, redesigning or upgrading a product, the communication must be carefully carried out by considering the under-listed:
    • Stakeholders
    • employees,
    • customers,
    • partners, and
    • Other key groups in your brand story and vision.
    One way to put them into consideration is by asking for their feedback, opinions, suggestions, or testimonials. This can be achieved by effectively making use of emails, newsletters and even the organization’s blog and posts. Other viable social media can also be used to give notifications of an upcoming change in the features of a product or app

  2. Snapchat made the mistake of rushing the redesign without considering user feedback and preferences. Companies should prioritize user experience and involve users in the design process to ensure that changes resonate positively with the target audience. The quick rollout of the redesign without thorough testing and consideration of possible consequences resulted in unintended negative outcomes.

    Furthermore, communication during the redesign process was inadequate, causing frustration and backlash from users. Since every product is targeted at meeting the users’ needs, better communication with users about the reasons for the changes, the timeline, and how feedback would be addressed could have alleviated some negative reactions.

  3. The lessons to be learned is that it is good to get customers feedback of the improvement you want to carry out before embarking on it with clarity knowing ahead what is coming. They only took internal feedback without external feedback before embarking on the improvement.

    Also, the communication pattern of broadcasting advertising using full scale lunch ahead made the expectation big which was not melt. I think they would have tried soft lunch or minimal lunch in this way they would have handled the situation without much noise to affect the company.

  4. The case study of Snapchat offers important lessons regarding product improvements and communication strategies:

    1. Prioritize user feedback: Snapchat’s mistake was not giving enough consideration to user feedback during the redesign process. It is crucial to involve users throughout the development cycle and conduct thorough testing to ensure changes align with their preferences and expectations.

    2. Avoid rushed redesigns: Snapchat acknowledged that the redesign felt rushed, resulting in negative user reactions. Taking sufficient time to plan, test, and iterate on product changes can help prevent significant backlash and mitigate potential negative impacts on user experience.

    3. Manage stakeholder interests: Going public introduced additional stakeholders, making it more challenging to manage and align their interests. Involving all relevant stakeholders throughout the decision-making process, obtaining their buy-in, and addressing concerns or conflicts early on is essential.

    4. Enhance communication: Snapchat could have improved its communication strategy by proactively addressing user concerns and explaining the reasoning behind the changes. Transparent and timely communication helps manage expectations, build trust, and minimize the risk of alienating users.

    5. Cultivate an innovative culture: Snapchat’s CEO emphasized the significance of taking risks and fostering a culture where employees feel encouraged to experiment and share their ideas. Creating an environment that promotes innovation, open communication, and collaboration can drive continuous improvements over time.

    In conclusion, the key lessons from the Snapchat case study include valuing user feedback, avoiding rushed redesigns, managing stakeholder interests, enhancing communication strategies, and cultivating an innovative culture within the organization.

  5. o What mistakes did Snapchat make with regards to its product improvements?
    The company did not give enough time to gain a strong market and allow users to get used to the interface prior to major redesign. One other mistake is the inability to consider the implication of going public without testing, they seemed unprepared for the increased customer base and the fact that there could be a lack of buy-in, they were too confident that stakeholders will accept the changes.

    o How should communication have been handled?
    Opinion could have been sought prior to the change. Also, the redesign should have been communicated and delivered in phases.

  6. Snapchat’s error was going public with the redesign before testing it with users to gauge their reaction. Prior to proceeding, they should have introduced a prototype version of the redesign.

  7. Snapchat made a mistake by going public about the redesign without first putting out the redesign to see if the users would embrace the redesign or not.
    There should have been a prototype version of the redesign before deciding to go ahead with it.

    1. Snapchat supposed to have introduced a prototype version of the product and then carried out an internal survey with effective communication inline with the product redesign expected goals before going public.

    2. I totally agree with you. If truly the product is meant to meet the user’s needs, then it would be better to get their feedback using a prototype version launch.

  8. The mistake on the product improvement was that it was complicated as snap had gone public with the whole redesign. This meant more stakeholders to manage, align and get buy-in. So there was a huge loss on their stakeholders( both investors and customers) as a result of this redesign.

    Snap could have made like an initial media buzz to inform its users about the new features and gauge their reactions. This will give them proper feedback on the product improvement and provide room for more adjustment before publicly releasing. The customer feedback could also mean not releasing it at all.

  9. The PM’s at Snap should have taken their time to critically analyze the product while carrying out hypothesis before the news is brought to the general public.
    If the public is made aware in a better way through communication – having to see how it betters their usage, having a video sample of how it works, like Meta usually does, I believe customers will be able to adapt to such change.

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