For every GOOP, there is one Preserve.

When it comes to online businesses, success is both bigger and more unpredictable than ever. This is because much of it comes from social influence: the effect that people have on one another’s decisions.

We almost never make decisions independently of one another. Faced with the abundance of choice, we rely on others to know what to buy, read, wear or listen to. We also like the same things as others like because we are social animals and want to share our experience with them.

Glossier did not succeed because of its product. It succeeded because women wanted to enjoy the benefits of sharing their choices, preferences and looks.

More often than not, a product, brand or technology are not the reason why people flock to an online business. They adopt a business because other people are already there. Kylie Cosmetics website is so poorly set up that it crashes every time a new product drops. But this hardly ever deters her fans.

In online markets, success is then a matter of cumulative advantage. Something becomes popular mostly because a lot of people like it. And because a lot of people like what they think others like, online markets do not only reveal our preferences. They actively shape them.

The quest for the next GOOP will remain elusive as long we fail to look beyond algorithm and towards the social activity as the source of an online business’ value.

This social activity revolves around the 4Cs: community, content, curation and collaborations. They critically impact how a company launches and markets its products and creates, captures and delivers value for its customers.

Community: A retailer needs to encourage social connections among its customers. These social connections will become its primary source of value and the key driver of competitive advantage. Social connections work best when created around an audience’s pre-existing passion, hobby or interest. High-design ride wear brand Rapha positions itself as a “vibrant ecosystem for road riders around the world.” Its belief that cycling transforms lives translates into the series of local Rapha Cycling Clubs, where cycling enthusiasts can gather for events, rides, races and to bond with others.

Content: Content created by a retailer generates value even before a single product purchase or use of service. California-based fashion apparel brand Dôen creates social network around its proprietary content. The brand prides itself in selling “thoughtfully designed clothing by women, for women.” This female link is Dôen’s value proposition, and it consistently delivers it through its product design, events and its Journal, where Dôen profiles the extraordinary stories of community members that others can have conversations around.

Curation: A retailer’s new customers can lower the value for its existing customers. To prevent reverse network effects and maintain a high signal-to-noise ratio, retailers need strong curation and personalization of the customer experience. In order to ensure that its products and services are relevant and valuable to its customers, Adidas introduced Creators Club, a membership program that gives customers access to exclusive events, products and special offers.

Collaborations: Ask what else your customers are wearing, reading, listening, experiencing and talking about in addition to your products or services. Relevance of a retailer for its target group is greater if it is culturally amplified. IKEA’s collaboration with a streetwear brand Off-White aims at designing the affordable furniture collection for millennials to help them create their first home. More importantly, it reflects a broader taste and the aesthetics of their joint audience.

No one knows who the new GOOP is going to be. Instead of obsessively guessing the next success story, we can create one by making our technology inherently social. To increase the chance of creating a cumulative advantage once the product or service is in the market, we have to put one or more of 4Cs at their core. In the complex and unpredictable online markets, designing for social influence our best bet.

A version of this article was published on 2PM, on October 15th 2018

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