What exactly is the "development-advertising disconnect" that slows corporate growth?

In November 2020, Dentsu Inc. partnered with Goodpatch, a leading company in the UI/UX field, to launch 'X Design Partner.' This initiative provides integrated services: starting with UX-driven service design and extending to marketing strategies for business growth.

In the first installment of this series, we spoke with Goodpatch President Naofumi Tsuchiya about the essential role of UX in business and the key points for driving business success.

This time, we delve into the challenges companies must overcome to grow their business centered on UX, and the solutions to those challenges, which also relate to the background behind the launch of X Design Partner.

Dentsu Inc. Creative Strategist Masahide Kakei interviewed Tsuyoshi Matsuoka, Executive Officer at Goodpatch, and Katsuki Noda, UX Design Lead, who are leading this project.

【What is Goodpatch?】
A global design company that propels business forward through design. It solves business challenges for companies ranging from large corporations to startups through design, undertaking new business launches, existing business renewals, corporate design strategy planning, and design organization building support. It operates the prototyping tool " Prott," the designer-focused career support service " ReDesigner," and the fully remote design organization " Goodpatch Anywhere." In June 2020, it became the first design company to list on the Tokyo Stock Exchange Mothers market.

 

【Dentsu Inc. and Goodpatch】
In November 2020, they launched the joint project "X Design Partner." This initiative combines both companies' strengths to provide end-to-end service design centered on customer experience value and marketing strategies for business growth in developing new digital ventures and products. ( See press release for details )

 

The disconnect between "Product/Service Development" and "Advertising/Growth" is a major corporate challenge

Kakei: X Design Partner is a project that provides an integrated solution for new business and product development in the digital domain. It combines Goodpatch's expertise in service design centered on customer experience value with Dentsu Inc.'s strength in marketing strategies aimed at business growth.

Could you revisit the business challenges Goodpatch identified that led to this initiative?

Matsuoka: Currently, many companies are considering "product/service development" and "advertising/growth" separately, leading to various "disconnects."

Specifically, these include "target/persona fragmentation," "core value and message fragmentation," and "investment plan fragmentation." As a result, we saw issues like personas designed during service development changing during the advertising phase, discrepancies arising in the messages being communicated, and fundamentally, the inability to design optimal investment plans because development budgets and advertising budgets are separate.

Kakei: Exactly. I shared that same sense of urgency. Precisely because interest in UX has surged across all fields in recent years, I believed that for companies to truly realize UX, it's crucial to handle everything from development to growth seamlessly.

That's why we reached out to Goodpatch, a leading company in the UI/UX field. What were your initial impressions?

Noda: While Dentsu Inc. is strongly associated with advertising creativity, upon discussing further, I realized they also focus heavily on user research and uncovering insights. I sensed a mindset quite similar to ours.

Matsuoka: I remember deeply resonating when Mr. Kakei first mentioned the persona design challenge: "The product development team and the communication strategy team create personas separately, leading to mismatches."

Kakei: It's an organizational challenge many Japanese companies face, isn't it?

Matsuoka: I completely understand that feeling. When I was involved in development at a game company, we once completely handed off sales promotion to the marketing department right before launch. I believed this practice needed to change to maximize user experience across the entire business, so I viewed this project favorably from the start as a potential breakthrough.

A user-centric perspective and full commitment spirit enhance a product's LTV

 

Kakei: Before we articulate how Dentsu Inc. × Goodpatch will bridge the gap between product development and advertising/growth, I'd like to clarify the commonalities and differences between our two companies.

Matsuoka: Our common ground is likely our focus on the "user perspective." Even in client work, we consider what we can do to provide something valuable to the end users. Similarly, I believe Dentsu Inc., when creating communication strategies and creative work for clients, thinks about how to move the hearts of users. In that sense, while our areas of expertise differ, our fundamental goals and stance are the same.

Kakei: I agree. The difference lies in whether the output is advertising or a product. While the methodologies and data handled differ accordingly, the perspective of truly understanding the user is a key point both of us value.

Noda: In terms of differences, we excel at developing products from scratch. However, we don't often handle the post-launch phase—areas like awareness and growth. That's Dentsu Inc.'s specialty, so I believe there's room for us to complement each other.

Kakei: Goodpatch's strength lies in its system where each person is fully committed to a single project. This is a significant competitive advantage, especially since it's commonplace for advertising agencies and other design firms to handle multiple projects simultaneously. This focus is likely a major reason Goodpatch can build such strong trust and a true "one team" feeling with clients.

Noda: I believe there's also value in the experience and knowledge gained by handling multiple projects simultaneously, so it's hard to say one approach is definitively better. However, especially in zero-to-one development where we create something entirely new, the ideas that emerge from being 100% committed to the client and thinking things through to the end are often the ones that truly resonate with users.

Now, in my role managing the team, I can't fully commit to a single project. So, no matter how brilliant an idea I come up with, I leave the final decision to the members fully committed on the front lines.

Kakei: That approach is likely reflected in the high LTV of the products your company handles. While there are many design firms capable of creating excellent campaign sites or landing pages, when considering design firms that can create digital products with high LTV rooted in people's lifestyles, I personally feel Goodpatch stands head and shoulders above the rest.

Accompanying clients end-to-end from development through crossing the chasm

Kakei: Finally, could you reiterate what Dentsu Inc. × Goodpatch uniquely offers clients?

Noda: Goodpatch's defining characteristic is its specialization in qualitative analysis, not quantitative. We strive for designs that deliver overwhelmingly profound experiences to even a single user. When combined with Dentsu Inc.'s industry-leading marketing data and analytical expertise, we believe this creates unprecedented, innovative products.

Kakei: Indeed, while we also identify individual targets as a marketing tactic, we're a company that has always focused on capturing the market from a bird's-eye view and on advertising—broadly communicating. I believe this allows us to create services that leverage each other's strengths.

Matsuoka: From the client's perspective, when creating a five-year plan for a new business, it's common to anticipate losses in the first year, gradually increasing sales to reach profitability. Often, this plan includes a point where the business crosses the chasm—essentially, a significant leap forward.

However, the reality is that there aren't many partners who can be involved from the initial planning stage and accompany the client through development all the way to crossing the chasm. As a result, it's common for businesses to struggle to grow effectively, often changing production companies or advertising agencies each year.

X Design Partner combines the strengths of Goodpatch, which excels at zero-to-one development, and Dentsu Inc., which excels at crossing the chasm. We believe this collaboration allows us to step on the accelerator at the optimal moment for our clients' business growth.

Kakei: Thank you. Our CEO, Tsuchiya, has given us a motivating message: "We want you to leave a significant mark that changes the industry." We are all fired up to deliver that kind of impactful results to our clients. If you're interested, please feel free to contact us.