Most startups focus on removing friction. They want everything to be frictionless and easy for users. The more you strip away, the closer you get to the essence of what you’re building. This advice generally works if you’re targeting mass markets because distractions can be costly. But I see an antithesis emerging.
If your goal is to serve niche markets—which can be huge on a global scale—friction can actually create value. This is especially true in the premium segment, where not letting everyone in increases the perceived value of what you’re offering.
Take Soho House, for example. It isn’t considered high-value simply because of the quality of its offering, but also because not everyone can get in. That friction raises the perceived value.
Intentional friction points in your customer experience allow you to filter more aggressively and concentrate on the customers who truly meet your ideal profile. Would you rather have 1,000 cheap customers who frustrate you every day, or 10 premium customers willing to pay 100 times as much? In today’s fragmented markets, this isn’t a far-fetched scenario; it can be a realistic and compelling path when you’re building products for specific audiences.
Instead of chasing the masses and entering perfect competition, you can avoid that race entirely. Go deeper into your niche and define the precise type of customer you want to serve. And don’t assume your upside is limited just because you go niche—there are companies worth hundreds of millions of dollars that cater to incredibly specific audiences.
The question of friction and value ultimately comes down to one guiding consideration: what type of company do you want to build, and who are you passionate about serving? Let that be your north star. And remember, friction can play a powerful role in shaping perceived value.