How do you know if you are ‘significantly better’?

I frequently mention how you should aim to build a product that is significantly better than the existing solutions. But how do you measure this?

In a recent interview with Lenny Rachitsky, Kunal Shah described how he uses his Delta 4 model to measure improved efficiency.

Using his approach, you ask users to rank your product against competitive alternatives on a scale of 1 to 10. If the difference between the scores is greater than or equal to 4, then you have a solution that is ‘significantly better’ than the alternatives.

The classic example is Uber. How do you rate Uber compared to calling up a cab company to book a taxi?

Kunal believes that when you achieve this, three things will happen:

1.       The users' behaviour is irreversible, they won’t go back to the old product.

2.       They have a very high tolerance.

3.       Users will brag about your product or service, and nothing is more powerful than word of mouth.

So next time I mention building a product that is ‘significantly better’, please keep Kunal’s Delta 4 model in mind.