This article is a fantastic design thinking success story. In 2009, Airbnb was on the brink of failure. The company was hardly earning any revenue ($200/week) and needed to unveil solutions that would turn the financial state company around. After some reflection, the Airbnb founders identified that the quality of all of the listing photographs on their site was awful because the photos were taken using camera phones or taken from classified ads. In a last ditch effort, the founders decided to pursue an avenue that many would deem a non-scalable solution. They decided to rent a camera, spend time with the customers listing properties, and improve the inferior quality of the listing photographs to make them beautiful and attractive. They made this decision on a whim without any technical data. Luckily, it paid off in a very big way. Once they began posting higher quality images of the properties the company’s revenues began to increase for the first time in several months.
Without question, Airbnb can attribute this pivotal business turning point to design thinking. Had the company continued to approach problems with the same narrow, technical frame of mind (read: through code), it never would have discovered this ingenious solution to increase users and subsequently revenues. By taking the time to have meaningful conversations with customers listing properties and form a better understanding of the user experience, Airbnb founders realized that users weren’t able to really view the properties that they were paying for. These conversations helped Airbnb founders identify the cause of the revenue slump and inspired them to seek out innovative, design-based solutions.
Today, Airbnb requires that all new hires take a trip (paid for by the company) the first 1-2 weeks of hire and then document the experience. This allows employees to get first hand user experience, which better equips them to identify creative solutions to improve the product. When it comes to problem solving, Airbnb encourages employees to start with creative, sometimes outlandish, non-scalable ideas as a way to spur innovation. Employees take small bets on these ideas to see if there is meaningful return on the bet and if there is, the company devotes more resources and manpower to pursue the ideas further. It is this way of design thinking that has led to many of the most innovative features of Airbnb as a company. Getting in the minds of users and thinking bigger (outside the world of tech oriented solutions) has yielded a sizeable payoff for Airbnb as revenues for 2014 are estimated at $1.35B. It is stories like these that inspire me to implement similar design thinking process into my own business experience. Thank you, Airbnb!