Nubank is a game-changing fintech company that is a $55 Billion business and based primarily in Latin America. Founded in 2013 and based in São Paulo, Brazil, Nubank has ditched traditional bank branches for a sleek, all-digital experience that customers can access right from their smartphones.

Their secret sauce? A laser focus on customer happiness. Nubank aims to make their customers love them fanatically, and it shows—80-90% of their growth comes from word-of-mouth. They have a clear strategy and a knack for constantly improving their products based on customer feedback. They use something called the Sean Ellis score to make sure their products are loved before they scale them up, which means they're always delivering top-notch experiences.

The Sean Ellis score

The Sean Ellis Score is a powerful metric used to gauge a product's potential for sustainable growth by measuring its product/market fit. Named after Sean Ellis, a renowned growth hacker, this score is derived from a single pivotal question: "How would you feel if you could no longer use this product?"

Respondents can choose between options like

• "Very disappointed"
• "Somewhat disappointed"
• "Not disappointed"
• "I no longer use the product"

A high percentage of users, typically around 40% or more, indicating they would be "Very disappointed" if they could no longer use the product, signifies a strong product/market fit. This simple yet effective metric helps startups and businesses understand their customer base's attachment to the product, providing critical insights for strategic decision-making and growth planning.

Jag Duggal

Jag Duggal is the Chief Product Officer at Nubank, where he leads the product, design, and research teams. He has over 20 years of experience in product management and has held leadership roles at companies like Facebook, Yahoo, and eBay.

Fundamental Difference Over Incremental Improvement

How does Nubank approach product development to achieve such rapid growth?

Lenny

We're not trying to be incrementally better, we are trying to be fundamentally different. We want our customers to love us fanatically.

Jag Duggal

Customer-Centric Approach

What drives Nubank's exceptional customer loyalty?

Lenny

The customer's love, will they want to tell their friends, and neighbors, and family about it? And so I think that's the heart of it.

Jag Duggal

Iterative Product Development

How does Nubank measure product-market fit before scaling a product?

Lenny

If at least 40% of your customers are not very disappointed, not just a little disappointed, but very disappointed, you haven't reached product market fit.

Jag Duggal

Key Themes Discussed

Nubank's success is built on several foundational principles. Firstly, the company emphasizes being fundamentally different over being incrementally better, striving to create products that customers love fanatically. This customer-centric approach ensures that products address deep pain points, driving organic growth through word-of-mouth.

It's interesting because throughout the talk he mentions Jeff Bezos and a lot of the principles from Amazon and it was cool to hear a top product person talking about how focused they are on the customer.