At a Glance:

• Why authenticity creates an unbeatable competitive advantage

• How to shift from traditional market research to emotional understanding

• Key metrics that signal you're achieving emotional-market fit

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I introduced the concept of emotional-market fit in my last newsletter. Today, I’ll show how to develop it.  

Emotions Are the New Advantage

If you were selling something, how would you want your prospective customer to respond? 

1. "You want money, and I'm just a path to that."

2. "You have a decent product but don't understand my challenges."

3. "You understand my issue and can help solve it."

4. "Wow, you really understand and value me. Thank you!”

Most companies never get past the second response. The rare ones that reach the fourth create companies that matter.

Take, for example, Othership, a company whose CEO I recently profiled that provides an almost spiritual experience around saunas, cold plunges and community events. Their testimonials aren’t about heat and health benefits—they vibrate with emotion: 

• “I would honestly move to Toronto just to come here more often.” 

• “This is by far the most transformative place I have ever been.” 

• “It’s a place where I always feel welcomed, safe, and free from judgment.” 

That's emotional-market fit in action.

And it’s a moat. Competitors can’t copy your emotional approach. Imagine another sauna company opening in Toronto and doing the same thing. It would fall flat and elicit the level one response in the list above. 

When you build your company around emotional-market fit, it shapes everything:

• Your product is uniquely designed around deeper human needs 

• Your culture attracts people who've walked in your customers' shoes and love your purpose 

• Your positioning naturally depositions competitors as shallow alternatives

• Your community and ethos become a moat that others can't replicate

Authenticity can't be faked.

Getting Started

Traditional market research and interviews often miss the emotional landscape entirely.

Instead:

• Learn from anthropologists about deep observation

• Develop active listening skills to elicit genuine emotional responses

• Focus user stories on feelings, not just facts

• Understand the “system” your user is a part of, not just their individual perspective

The metrics shift too. Beyond retention and NPS, look for:

• Community engagement

• Emotionally resonant testimonials like above 

• Strong positive-to-negative sentiment ratios

• Stories that spread organically

The Real Work

Traditional competitive advantages are evaporating. Technology is being commoditized. Features can be copied overnight. But deep emotional connection? That's a moat.

It requires a comparatively high barrier to entry. AI can’t do it. And it infuses product, marketing, sales, support, and every action your business takes. And it can galvanize your decision-making. 

Remember Luke's "Robots versus Iron Man" moment at Puppet from the last issue? He had to decide if he was making his buyer a hero or replacing them with tech. He chose the former and it shaped their entire journey.

Companies that understand how to build human understanding—will define the next generation of breakthrough success. It’s the topic of my next book and I’ll be sharing a lot more stories soon. 

With love,

Dave

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