Ed Zitron, CEO of EZPR and author of 'Why Everything Stopped Working,' discusses the decline of tech services and the need for a 'customer mode' approach. He argues that startups can find success by prioritizing customer satisfaction over growth-at-all-costs. Zitron critiques the shortcomings of AI-driven customer support, highlighting the importance of human interaction in business. The conversation also delves into how consumer expectations are shifting, urging founders to value quality and meaningful relationships with users.
The podcast argues for transitioning from a growth-at-all-costs mindset to a sustainable, customer-first approach, termed 'customer mode'.
Listeners are informed about the potential opportunities for startups to disrupt the market as established tech companies prioritize growth over user experience.
Deep dives
Shittification of Tech Services
Many popular tech services have deteriorated, a phenomenon referred to as 'shittification.' This term describes how platforms like Google Search and social media apps have been prioritized for growth rather than user experience, leading to overwhelming ads and poor functionality. For instance, users now encounter excessive advertising even on their personal devices, like laptops, reducing usability and increasing frustration. The conversation emphasizes a collective dissatisfaction that exists among consumers who grapple with these inferior products consistently.
Opportunities for Startups Amidst Incumbent Failures
The discussion highlights that the challenges faced by major tech companies present ripe opportunities for startups to enter the market and disrupt the status quo. The increasing burden of growth metrics on incumbent companies has made their products less user-friendly and effective, as exemplified by Microsoft Office's monopoly in the productivity software market. As these established companies become bloated and complacent, there lies a significant gap for startups to provide better, more sustainable alternatives. The emphasis is on creating products that prioritize customer satisfaction over sheer growth.
Customer-Centric Business Models
An important aspect of successful startup strategies is focusing on customer happiness and sustainable growth. Founders are encouraged to ensure their businesses remain profitable and prioritize the user experience, contrasting this with larger firms that often neglect these principles. Notably, the idea of happy customers leading to lasting business success is positioned against the backdrop of companies pursuing aggressive growth trade-offs. The narrative stresses the need for a shift away from growth at all costs towards a sustainable and customer-focused model.
Challenges and Innovations in AI and Funding
The podcast touches on the growing frustration with AI companies as they become unprofitable and fail to meet consumer expectations. Many believe that while generative AI can streamline operations, it may not provide lasting solutions for startup growth in the current market. Additionally, there is a hesitation surrounding venture capital investments which often favor later-stage, high-growth companies rather than nurturing early-stage efforts. This situation demands innovative funding approaches that prioritize sustainable development in the tech ecosystem.
You might have noticed in your time online that a lot of the services and the websites that you’re using are kind of getting…worse. The good news, though, is that this means that there are different sectors that are ripe for disruption.
On today’s episode of Equity, Rebecca's joined by Ed Zitron —CEO of EZPR, host of the Better Offline podcast, and author of Why Everything Stopped Working—to dig into why this shift is happening and what it means for startups.
Listen to the full episode to hear the pair discuss:
Why it’s time to ditch ‘founder mode’ for what Ed calls ‘customer mode’ – a more sustainable, customer-first approach that beats the growth-at-all-costs mentality.
The opportunities Ed sees for startups in what he sees as a declining market
The long-term outlook for generative AI companies like OpenAI. (Note: this interview was recorded before the DeepSeek news broke, but don’t worry – Equity will have that update for you later in the week.)
Equity is TechCrunch’s flagship podcast, produced by Theresa Loconsolo, and posts every Wednesday and Friday.
Subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod. For the full episode transcript, for those who prefer reading over listening, check out our full archive of episodes here.
Credits: Equity is produced by Theresa Loconsolo with editing by Kell. We’d also like to thank TechCrunch’s audience development team. Thank you so much for listening, and we'll talk to you next time.