JTBD (vacuums, meals, multitools) exists to find the implicit motivator. Humans stink at admitting, acknowledging, and understanding the scope of our motivations. JTBD finds gaps between those shortcomings and the lived results.
“I’m going to go Black Friday shopping,” Krista told me, “as an excuse to get lunch with my girlfriend.”
It seems like shopping is shopping – but one distinction is experience or convenience. Are we doing something to get it done or doing something to have done it? Shopping as an excuse to get lunch is a different job than shopping for deals.
One framework for investing is the bathtub model. Individuals (but also managers of OPM like pension funds, endowments, etc.) aim to fill the tub as much as possible. An individual’s main stream is their salary. Maybe some salary first goes to an investment, and then pours in the tub. A rental property, a second job, a military retirement are inputs too.
But the tub doesn’t just fill up, it drains too. Losses in the market are like leaks in the tub, hopefully we can mop these up and dump them back in. The big four unexpected costs: health, house, job, spouse are major leaks. Retirement is the intentional draining of the reserves.
More water and more pressure is good. Fewer and less severe leaks are good. One way to add on net are uncorrelated assets. What flows faster as something leaks more? Real estate and gold are classic examples. Bitcoin too – kidding! ‘All weather’ and ‘cockroach’ are portfolios which blend assets for uncorrelated returns. The goal is to prevent major mop ups or total losses.
But the best and only uncorrelated asset is mindset.
A common mindset during drawdowns for investors who dollar cost average is that stocks are on sale. This attitude goes beyond investing. When something bad happens it’s a chance to get stronger. Another is, you’ll have a great trip or some really good stories.
The world is complex. There’s a lot going on, sure. But also ‘a butterfly flaps its wings in Kansas and causes a Tsunami in Guam’ complex. How does someone plan for just what’s happened since 2016?! How do investors (but also managers of OPM like pension funds, endowments, etc.) find that someone? Not only is our mindset the best and only uncorrelated assets, it’s ours to control. We can want less or more. We can view the obstacle as the way. We can match expectations to reality.
There’s a financial advisor axiom that the best plan is the one you’ll stick with. For trainers, it is exercises done through a full range of motion. The best endocrinologists find an achievable plan, not an ideal one. There should be one for education too. With that in mind, here’s a list of Russian resources optimized for consumption rather than comprehensiveness.
The Rest is History (podcast). Some podcasts are better than books because the host(s) add context. Dan Carlin is great at this. Tom and Dominic do too, and their series on Vladimir Putin is excellent.
Red Notice. A finance thriller? Yep. Bill Browder spent decades opening, running, and closing a fund in Russia during the switch from communism to oligarchy.
Exporting Raymond. We love Phil Rosenthal’s Netflix travel/food show Somebody Feed Phil. This is the story of taking the show Everybody Loves Raymond to Russia.
Koylma Tales via Agustin Lebron called it “a collection of stories of people who lived in the Gulag, possibly the most revealing book on human nature I’ve ever read.” Takes place through the 1930s and 40s.
CBS News presents a survey suggesting people want younger politicians. Okay, sounds great! But not so fast. We’ve got questions.
Why am I seeing this? Courtesy of Sir David Spiegelhalter, this question wants us to consider why this is on a screen eighteen inches from our nose. Is it because it’s essential information for the functioning of our lives, like the weather or the email about our daughter’s swim meet location change? Or rather than essential it’s emotional like politics, religion, or social media brouhahas?
Am I switching questions? Courtesy of Daniel Kahneman, this question wants us to consider what question we are really answering. Sometimes we answer an easier question because life’s questions are really freaking difficult. Plus, we’re lazy. ‘Should centenarians be senators?’ doesn’t lead us to balance the merits of experience and patience relative to bias and cognitive decline. Rather, we’re reactionary and switch the questions to: ‘Are these politicians good?’
Am I thinking symmetrically? Courtesy of Bob Moesta, this question wants us to consider when opposites are the wrong solutions. Is it that legislators are too old or that their policies are antiquated? The solutions to loud, more, and high are not necessarily quieter, less, and lower. The solution to older may not be younger.
Why is this the right metric? Courtesy of Billy Beane, this question wants us to consider the best metric for the chosen outcomes. What if rather than age, the best metric was presence (or absence!) of a law degree. About half of the 117th US senate went to law school. Is that good? About two-thirds went to college in the state they represent. Is that good? Is education a better predictor of senator success?
For some things podcasts are better than books. I’d never read about their subjects but The Rest is History and Hardcore History podcasts are consistently great.
But books aren’t bad. They’re different. Fiction is great for books. Non-fiction is harder to execute. Ryan Holiday’s book, Courage is Calling, is a different form of non-fiction. Part of the four stoic virtues series, Courage is a collection of vignettes and the mini-stories give the reader many hooks to hang onto. Appearing are philosophers, writers, officers, statesmen, stoics, men, women – they’re all here. It reads fast, which is a good thing! I took away four aspects for courage:
Act now. Douglas McArthur summarized life’s failures as being too late.
Don’t fear the imagined. Hurrying to make a rendezvous through the Texas countryside, Ulysses S. Grant remarked to a companion that there were many wolves about, maybe surrounding them. Pushing through the brush Grant and his companion eventually came upon the wolves. Only two, who scattered. Grand reflected later “there are always more before they are counted.”
Courage and fear are required conditions. Fighting the Nazis and rallying the French, Charles de Gaulle wrote “The intervention of human will in the chain of events has something irrevocable about it.” The important stuff has weight. And that responsibility has “a moral element.”
We grow. “The willingness to accept responsibility for one’s own life, “Joan Didion observed, “is the source from which self-respect springs.”
Courage is Calling is not a quake book, it’s a wake book. It’s what to read instead of checking your phone first thing in the morning. It’s different non-fiction. It’s more holistic than linear. It’s a mental refresher. It’s a reminder from another version of yourself, a version that encourages courage.
“First time seeing this at restaurants…,” posted Mrs Monroe, “way to guilt customers to spend more”.
Commenters added: “tipping is a sham”, “servers don’t really get that money”, “I hate seeing this at…”. Some suggested subterfuge, a special and spiteful $0.01.
It’s too bad, and a chance for good copy.
There are many restaurants because there are many restaurant jobs: fast, casual, formal, status, and so on. Diners want to feel good.
Broadly, businesses like restaurants, sell two things: steak and sizzle. The tangible, measurable, structural aspects are the steak: how fast, how good, how much. The intangible, spiritual, and attitude components are the sizzle: how nice, how friendly, how fun. Intangibles can be measured, though not as easily (so we often don’t).
Part of a place’s sizzle is their copywriting, even when it’s time to pay.
The good. ‘Good’, ‘Great’, ‘Wow!’. Translating feelings (this service was good) into actions (tip 15%) helps customers. People, like rivers, follow the least resistance. Make it easy. Also good are the calculated tips.
The bad. (1) Misuse leads to dislike. One commenter claims their local Taco Bell uses this same interface – tips and all. That’s fine, I guess, but doesn’t jive with the TB strategy. Hence the frustration.
Also interesting is why Mrs. Monroe feels guilty. Was this a serve-yourself place? Family style? Buffet? There’s a disconnect between her expectations and experiences.
(2) People like choices. There’s technically thousands of tip amounts, but we only see six. Especially with money, people do not like to be told what to do. Better would be a slider like for a phone’s brightness, or a knob like for a stereo’s volume.
(3) ‘Best Service Ever!’ is a twenty-five percent tip? Whoever programmed that has not (or forgot about) eating out with kids. Best ever deserves more. Setting this upper amount also frames the range a customer sees.
(4) ‘Skip’ could be ‘Skip and speak with the manager’. This forces diners to match their words and actions. Was it bad, or just a bad mood?
The confusing. None.
This image lacks context: the quality, service, and kind of meal, the representativeness of the commenters, the individual’s profile. None of what’s written may be a solution. But thinking through the options might get to one.
Part of the uncertainty is the truth and fit between the big idea and the story. Start with No is an example. The big idea is our ego, the story is sales, and the fit is that good salespeople have the right ego. Do people have egos? Are people in sales? Does the right ego for sales still matter? Yes – so the book is good advice.
Wanting by Luke Burgis is an example too. The big idea is network types. The story is about mimetics. The fit is that we are mimetic because of our network structure. That checks out too (though I had my doubts about the effect size).
Winning by Tim Grover follows this pattern. The big idea is intentionality told through the story of competition. Winning like Jordan or Kobe requires intentional actions. That checks out too. An opposite story but the same big idea is Early Retirement Extreme. The big idea is still intentionality but the story is financial philosophy.
Grover focuses on intentionality in two ways: wants and outsider status.
For Grover, wants like winning are preceded by actions. Kobe and Jordan wanted to win so they had to take actions that lead to that. “If you don’t get on the same level,” Michael Jordan told one teammate, “It’s going to be hell for you.” Jordan was one of the first players to switch from carb heavy meals to eating steak before games. Before Jordan, few players trained during and before the season. For Kobe the actions were learning Slovenian to trash talk Luca Donic. In 2008, preparing for the Olympic Games, Kobe was going to the gym when the rest of the team came back from a party at five in the morning.
Intentional living requires wants which require actions.
Grover’s second point is how it feels to be an outsider. Howard Marks popularized the idea that outperformance means being different and being right. Easy to say, hard to do.
Investors, like Marks, can be different and right with good stakeholders. If limited partners don’t ‘get it’ the business plan can’t work. Investors then look for LPs who will ‘stick with’ a plan. It’s easier to be an outsider when surrounded by a (small) group of insiders.
Grover’s clients are in the entertainment business so the ‘get it’ is social. Why succeed unconventionally when you can fail traditionally?
There are ways to deal with outsider status. Have a plan and stick with it rather than stick your finger in the wind. “No,” Grover writes, “is a complete sentence.” Build up the don’t give a fuck muscle too. Some think it’s weird? Who cares!
Successful outsiders design easier paths. We are wired to not stand out. Kobe Bryant had the most ingenious form and LARPed as the Black Mamba. Winning wasn’t a great book. I hoped for more insider stories. But the big idea was a good reminder.
I don’t check my home equity every day, goes a joke among the Vanguard-Buffett-DCA crowd, why should I check my stock portfolio? It’s a riff on the availability heuristic: if I think it, it’s important.
‘Home’ is super available. Vacation rentals, of someone’s home. A chunk of net worth is home. Neighbors move. During Covid we were stuck in our homes. People began to work from home. After Covid the home market exploded. After that rates ran up. ‘Home’ is everywhere.
Transcript: “Buying a home? Rocket mortgage will cover one percent of your rate for the first year at no cost to you, saving you hundreds even thousands. With Inflation Buster that means more mini-vacations, a lot more lattes, and more date nights. Now imagine if rates drop within three years of your home purchase. You get exclusive savings when you refinance at that new lower rate. It’s more cash in your pocket. Save when you buy today and refinance tomorrow. Visit inflationbuster.com to get started.”
The good. Rapid fire: It’s not a house, it’s a home. One percent is a nice whole number, and worth more (psychologically) than 0.99999999%. First year… appeals to our myopia. More mini-vacations… highlight the opportunity cost. At no cost to you, and if rates drop… avoids our ambiguity aversion. Visit… as a call to action. 🧑🍳 😘
The bad. None!
The interesting. A picture is worth a thousand words, and this video is good.
We’ve tracked ‘average’ monthly home payments (1971-2022). On a four-hundred-fifty-thousand dollar home, Inflation Buster saves about $200 a month. Put another way, it’s a year of payments on a four-hundred-thousand dollar house instead of the more expensive one. None of that factors into this ad. It’s not the customer’s language.
Interest rates and home prices are not the important metrics. Only monthly payment matters. That’s the conversation in this ad.
Good business strategy is homeotelic, single actions work toward multiple goals. Aldi has a good strategy. Dominos has a good strategy. Trinny of London has a good strategy.
Good strategy balances what’s made, how it’s delivered, and how it’s communicated: product, placement, promotion. Aldi uses private labels to control the product, small footprint stores to sell from, and focused promotion. Those fit.
What does a business do well and what do customers want well done? Organizations answer these questions and the best organizations do so in a homeotelic way. This is an example from my local pickleball store:
For today and the next two days only (ends Wednesday 9/7)…we are offering a special Labor Day 20% off sale on Bags & Apparel and 10% off all paddles (and receive a FREE Paddle Cover with your paddle purchase).
Go to our website by CLICKING HERE.
For Bags and Apparel, use discount code LaborDay20 at checkout
For Paddles, use discount code LaborDay10 at checkout and receive a FREE paddle cover too.
NOTE: You can only use one discount code at a time, so if you are buying bags/apparel and a paddle you will need to place two (2) separate orders.
If you know what you want and want to go directly to the page, here’s the quick (direct) links:
Bags > CLICK HERE
Apparel > CLICK HERE
Paddles > CLICK HERE
Any questions, email
The good: Scarcity drives urgency and attracts attention. For the I’ve been thinking about this group, this email drove sales. The free paddle cover is good too.
The bad: (1) Discounts are heterotelic: more sales less brand value. All value is perceived value and premium products – like these paddles – shouldn’t be discounted. Price is a proxy for value. Here it is lowered. Freebies, gifts, ‘two-for-the-price-of-one’ maintain the core product value and have other benefits – see below.
(2) Why buy? Here customer language shines. Buy a bag and we will send three balls because you’ll have the room. Or, when you miss-hit at the end of the day your paddle is too heavy. Or, summer is winding down, get a long-sleeve shirt while they last. There’s nothing in this copy other than CLICK HERE TO TRANSACT NOW. As outsiders we don’t know the customer’s language, but a business owner should.
(3) Hats, shirts, and towels retail for thirty dollars. These lightweight packable items are perfect for shipping, have good margins, and are an easier part of profitability. But they are also a form of CAC. Reducing profitability per item raises the revenue, a homeotelic approach. People pay to be walking billboards. These items are great thank you gifts, with the purchase of a premium paddle. Gifts also seed new product lines and delight consumers.
The confusing: CLICK HERE. Multiple discount codes.
Labor Day Sales (like this) raise revenue but reduce brand value. Labor Day Sales are superficial and reactionary. Labor Day Sales are heterotelic, not homeotelic. Labor Day Sales should follow, not precede, Alchemy.
Here’s an excellent example, received around the same time.
Ridge speaks the customer’s language visually: my wallet is too fat. Why buy? Does it carry my cards and cash? Oh, it does. It’s the best way ever. Not ‘best’ via test, but ‘best’ is expert language, like someone judged wallets and this is indeed the best. Don’t CLICK HERE like a child, instead shop our wares like an adult. There’s no sale, but there are premium products (good, better, best) and because value is relative, ‘good’ appears discounted to ‘better’ and ‘best’.
Outsider commentary is a challenge. It’s another perspective, unaffected by sunk costs, and angled away from the status quo. However it’s also ignorant of successes, goals, and pesky problems like ‘oops we made too much’. Broadly sales are bad unless they are baked into a business’s strategy (like Domino’s Pizza).
Homeotelic, introduced here, applies everywhere. If someone learns to cook at home they save money, eat healthier, and gain skills. If someone joins a gym they meet new people and get healthier.
We were HelloFresh customers. The food is good enough. The recipes are simple enough. The logistics are easy enough. Is the copywriting convincing enough?
(Received August, 2022)
The good. This card has two goals: get our attention and convey ease. The ‘$155 OFF’ attracts attention and interest. The ‘3 surprise gifts’ is good too. Gifts are better than discounts because they are a CAC Trojan Horse, seed additional purchases, and delight the customer. Businesses undervalue gift giving.
The bad. ‘Packed schedule?’ & ‘We’ve got your back.’ & ‘…more time around the table with fam this fall!’ Terrible copy. There’s no story.
Persuasion is about ease. One form of ease is the story we tell ourselves. I’m a busy mom/dad and about to be busier because school is back/holidays are coming/ summer camps and vacations and need help to make food that is cheap/quick/tasty/easy. Help me tell myself this story. It’s like mad libs.
Erin, back to school? We’ve got your supplies. With Quick & Easy Meals ready in ~20 minutes or less, you can spend less time in the kitchen and more time eating your favorite foods with your favorite people.
Erin, back to school, back to the office, back to the store for more folders, then candy, then gifts. With Quick & Easy Meals ready in ~20 minutes or less, you can spend more time at home with the family than at the store getting their groceries.
Erin, what’s for dinner tonight? Something Quick, Easy, and Healthy for the whole family? Remember how easy it was to have everything delivered, prepared, and ready to go? Come back to Hello Fresh and save $155.
Surprisingly there’s no indication that we were customers. People are customers for a reason. HelloFresh must find the JTBD and use that language for good copywriting.
Good copywriting begins with curiosity. Businesses must talk to customers, identify their priorities, create prototypes, get feedback, and work out the kinks. Then they can use the customer’s words to present a solution.
It’s hard to crique copywriting without knowing the goal. Maybe this works. Maybe the ‘$155’ is the most important thing. Maybe – but maybe not.
Remember Rule #27:You can’t sell anybody anything, they must discover they want it.