Turing's Tofu #29

Create Your Own Market: Unlock the Secrets of Category Design + BackStitch Teardown šŸ”

In partnership with

Turing's TOFU: AI-Driven SaaS Growth
Curated by Andrew Mounier

Welcome to this week's edition of Turing's TOFU, where we dive into the latest and most intriguing developments in the world of AI and SaaS.

šŸŒŸ This week, we explore Deezerā€™s new ā€œPlaylist with AIā€ feature, Amazon AIā€™s rollout of the Rufus shopping assistant, and the innovative Google updates announced at Galaxy Unpacked for Samsung devices.

šŸ” In "Marketing Moments with Mounier," we dive into the concept of category design, inspired by insights from Lennyā€™s conversation with Christopher Lockhead. Learn how to create your own market space and dominate it with radical innovation and strategic thinking.

Don't miss our "TOFU Quick Bytes," where we dissect BackStitchā€™s AI-driven internal communications platform, highlighting its strengths and areas for improvement.

Let's dive in!

Your Brilliant Business Idea Just Got a New Best Friend

Got a business idea? Any idea? We're not picky. Big, small, "I thought of this in the shower" type stuffā€“we want it all. Whether you're dreaming of building an empire or just figuring out how to stop shuffling spreadsheets, we're here for it.

Our AI Ideas Generator asks you 3 questions and emails you a custom-built report of AI-powered solutions unique to your business.

Imagine having a hyper-intelligent, never-sleeps, doesn't-need-coffee AI solutions machine at your beck and call. That's our AI Ideas Generator. It takes your business conundrum, shakes it up with some LLM magic andā€“voila!--emails you a bespoke report of AI-powered solutions.

Outsmart, Outpace, Outdo: Whether you're aiming to leapfrog the competition or just be best-in-class in your industry, our custom AI solutions have you covered.

Table of Contents

šŸ“° This Week in AI & SaaS šŸ“°

  • Music streaming platform Deezer introduces a ā€œPlaylist with AIā€ feature, similar to Spotify and Amazon Music, thatā€™ll give 5% of paying customers the ability to create new playlists from written prompts. Read more.  

  • Amazon AI grants all US users access to Rufus, a chatbot thatā€™ll enhance the shopping experience by giving customers product comparisons, USPs, customer reviews and recommendations. Read more.  

  • Galaxy Unpacked announces 4 new Google updates coming to Samsung devices, including Circle to Search - a feature thatā€™ll allow you to search without switching apps on your Android. Read more.

šŸŒŸTuringā€™s Top Picks šŸŒŸ

FEATURED TOOLS 

  • Stories:  Do you run a B2B company? Turn customer stories into revenue. Learn more.  (Mention you saw this in our newsletter and get 15% discount). šŸ’øšŸ’ø

  • ClipNow: ClipNow is an AI-driven tool that transforms long-form videos into short-form content - such as TikToks and Reels - in a single-click, allowing users to repurpose content quicker, and remove the pains of editing. Try it. 

  • Foku: Foku is an AI-powered tool that includes a suite of features - such as an AI co-creator chat, document generator and an image-generator - designed to streamline workflows in businesses, supporting things like content management and collaboration. Try it. 

  • PageWriterPro: PageWriterPro is an AI-tool that creates content based on user input (specifically, your business and target audience), designed to boost productivity and streamline efficiency in creating web copy. Try it

  • SearchAlkemy:SearchAlkemy is a free keyword research SEO AI-tool that helps users create topic-clusters quickly, by inputting their domain and seed keyword. Try it.

Read of the Week: SEO Strategies That Always Work

ā

While everyone else is busy worrying about the NEW search landscape, you can gain digital ground by focusing on PROVEN SEO tactics.

Learn valuable SEO strategies and how to keep your website visible from ā€˜top influencer on the webā€™ (WSJ) Neil Patel, Matt Santos (NP Digital) and Joe Williams (Digital Marketing Institute), in the rapidly evolving landscape of searching. 

šŸ’” Marketing Moments with Mounier šŸ’”

Hey there, fellow innovators and marketers. Iā€™m excited to dive into this weekā€™s marketing moment, inspired by a captivating conversation between Lenny and Christopher Lockhead, a luminary in category design. If youā€™re eager to make a seismic impact in your field, now is the best time in history to do so. This isn't just about being a little better; itā€™s about being radically different and making a mark that canā€™t be ignored.

The Future Needs You

Christopher Lockheadā€™s message is clear: the future needs you. Itā€™s a rallying cry for those who want to leave an indelible mark on their industry. If youā€™re dreaming of an exponential impact, yearning to innovate, and passionate about creating new value, the time is ripe. Look back on your career and see how you were part of transformative projects, teams, and innovations. Now, more than ever, the world is ready for trailblazers like you.

What is Category Design?

Category design isnā€™t just about launching a better product; itā€™s about creating a whole new space for your product. Itā€™s about seeing the future differently and designing a market category where you can stand alone. Most businesses compete in existing markets, vying for a piece of the pie. But the legendary ones, the ones we admire and remember, create their own categories and dominate them.

Think Like a Visionary

Reflective thinking is essential. Itā€™s not about incremental improvement; itā€™s about envisioning a different future. Legendary entrepreneurs donā€™t see the future as a continuation of the past. They create a new reality. They obsess over problems that others might overlook and find unique ways to solve them. This is the heart of category design.

Languaging: The Art of Communication

One of the most powerful tools in category design is ā€œlanguaging.ā€ Itā€™s about creating new language that changes how people think. Look at Starbucks, for instance. They didnā€™t just sell coffee; they created a whole new language around it. You order a ā€œdouble grande latteā€ instead of a coffee. This strategic use of language sets them apart and allows them to charge a premium.

The Magic Triangle

To build a legendary company, you need to get three things right: Product, Company, and Category. They are equally important and must align perfectly. This balance ensures that your innovations resonate and create new demand rather than just competing for existing demand.

Lightning Strikes, Not Peanut Butter

Most marketers spread their efforts thin, trying to be relevant all year round. But true impact comes from focusing your efforts in powerful burstsā€”like a lightning strike. Itā€™s better to matter intensely for a short period than to be forgettable year-round. Plan big, impactful launches that capture attention and drive word-of-mouth.

Super Consumers: Your Secret Weapon

Identify your super consumersā€”those who are the most passionate and influential in your market. They are the ones who will drive your category forward. Engage with them, understand their needs, and make them advocates for your new category.

The Importance of Word of Mouth

Never underestimate the power of word-of-mouth (WOM). In todayā€™s digital world, WOM can spread faster and more effectively than ever before. Craft a compelling point of view that resonates with your audience, and let your super consumers do the talking.

Take the Leap

Now, more than ever, the marketing landscape is ready for bold, innovative thinkers. Donā€™t just competeā€”create. Embrace category design, think differently, and make your place in the world. The future needs courageous innovators who are ready to disrupt the status quo and create lasting change.

Letā€™s make this week legendary by embracing the power of category design. Remember, the greatest impact comes from being radically different, not just incrementally better. The future is callingā€”are you ready to answer?

šŸ‘¾ TOFU Quick Bytes: BackStitch Teardown šŸ‘¾

BackStitch: Founded in 2012, BackStitch is a platform designed to enhance internal communications in organizations, creating a centralized hub where information and content can be easily accessed and shared with both employees and target audiences. 

Strategy overview: BackStitch primarily serves in the B2B SaaS space in the HR Tech industry, targeting HR and Corporate Communication professionals.

Performance Analysis:

  • BackStitchā€™s annual revenue is $5.8M.

  • The size of their customer-base isnā€™t publicly displayed.

  • Theyā€™ve raised $6.83M in 7 funding rounds.

  • They currently have 11-50 employees, which grew by 7% in the last 6 months.

How have they achieved this? 

Critical Teardown:

What does BackStitch do well?

Personalized communications: BackStitch uses AI-driven analysis to provide insights to tailor messages to different segments of the workforce, refining and personalizing content to make it relevant to individuals, to increase employee engagement with communications.

Automates repetitive tasks: BackStitch automates repetitive tasks using AI, to streamline the onboarding and offboarding processes for organizations, allowing HR teams to focus on strategy development.

Free materials: BackStitch offers free guides and resources for HR and Internal Communications teams, such as a content calendar and a weekly newsletter, in exchange for a few personal details (name, phone number and work email address).

Flexible price plans: BackStitch offers free accounts for individuals and a 14 day free-trial for teams and businesses to sample the services before committing to a subscription, although they do include different features/plug-ins for different types of memberships.

What doesnā€™t BackStitch do well? 

No immediate customer support: The only way to contact BackStitch is by completing a form, where they could have integrated an AI virtual assistant or chatbot, to improve the customer experience and deal with time-sensitive queries. 

No social proof or case-studies: As well as not publicly displaying their customer-base, BackStitch has a lack of social proof, with an absence of case studies, or even testimonials (it has just 2 quotations from Forbes and Startland News on the homepage). This is a missed opportunity to showcase their service and prospective customers could find this untrustworthy, preventing a sale.

Dissatisfied, misled customers: Some users have expressed dismay at BackStitchā€™s implied sophistication of technology integration, in comparison to the minimal level of technology integration it actually has. Some users believe they have been falsely sold something that they wouldnā€™t have bought if theyā€™d known it was unsuitable for their needs.  

Infrequent blog posts: Although their blog content covers topics of interest to the target audience, they post infrequently (their latest blog post was 11 July, and the last post was in March). To entice new customers, and increase the satisfaction of existing users, they could publish more regular content.

AI integration

Personalization: BackStitch uses AI to tailor communications to individual employees or specific segments within organizations, to ensure employees receive relevant information, reducing information overload and increasing engagement.

Automation: They use AI to automate repetitive tasks, such as onboarding and offboarding employees. The platform can integrate with existing HR systems to ensure that new employees are automatically added to the system and departing employees are removed, maintaining up-to-date records without manual intervention.

Content curation: BackStitch utilizes AI to sift through vast amounts of information and curate content that is most relevant to the employees. This includes aggregating news, updates, and industry-specific information, that employees can easily access.

Analytics and insights: They use AI-driven analytics to provide detailed insights into how employees interact with the platform and the shared content. This can help organizations understand the effectiveness of their communications and identify areas for improvement. It allows for tracking engagement metrics and performing A/B testing to optimize communication strategies.

Key takeaways: 

  • Post valuable content regularly to demonstrate thought-leadership, to entice new customers and enhance the experience of your existing users.

  • Use AI to personalize and segment content so that it goes to the right people. 

  • Give your product or service social proof by using detailed case studies with influential or credible sources.

  • Use AI-tools to automate repetitive, time-consuming processes, so that you can focus on more strategic opportunities, save money and increase your productivity. 

What campaign or content marketing strategy would you like to see torn apart, next? Let me know! 

šŸ“¢Spread the WordšŸ“¢ 

If you found value in today's insights, share Turing's TOFU with your network. Let's grow this community of AI-driven SaaS professionals together!