Startups fail more often than they succeed. But when they succeed, the product often possesses a transformative quality—a leap that redefines how users approach a problem. This is the foundation of Kunal Shah’s Delta 4 theory: for a product to achieve massive success, it must deliver an experience at least 4x better than existing alternatives (a metaphor implies a substantial gap or leap in quality, value, or efficiency between the new solution and the status quo).

This improvement must be so compelling that users cannot imagine reverting to their old ways. Importantly, it’s not just about being slightly faster or cheaper—it’s about fundamentally transforming the user’s experience.

Key Pillars of Delta 4

  1. Irreversibility A successful startup’s product becomes the default choice because it solves a problem so well that users cannot fathom returning to previous solutions.
    • Example: Think of car-hailing or taxi apps. Before these apps, hailing a cab involved standing on the street, waiting indefinitely, and dealing with unpredictable pricing. These apps brought real-time tracking, consistent pricing, and convenience, making the old method feel archaic. It’s hard to imagine life without them.
  2. Behavioural Change To deliver Delta 4 value, a product must compel users to adopt new behaviours, even if it requires effort at first.
    • Example: Slack introduced the concept of channel-based messaging for teams. Slack didn’t just improve email—it replaced email in many cases by creating structured conversations around topics, a significant behavioural shift that teams embraced.
  3. High Retention Delta 4 products become indispensable. Once users integrate them into their lives, they stick around.
    • Example: Music streaming platforms like Spotify created an all-in-one space for accessing millions of songs without purchasing individual albums. The ability to curate playlists and access music anywhere ensures users shape the platform to their needs, making switching to another product unthinkable.
  4. Word-of-Mouth Advocacy Users of Delta 4 products become evangelists, spreading the word organically because the product is so effective, they want others to experience it.
    • Example: Calendly made the process of setting up appointments effortless. Instead of the email back-and-forth (“What time works for you?”), users simply send a link. The ease of use encourages users to share Calendly links, driving exponential growth through organic recommendations.

The Startup Mistakes Delta 4 Can Help Diagnose

Reflecting on common startup struggles, here are a few signs that indicate a company might not have achieved Delta 4—and how it can correct course:

  1. Vague Value Propositions If the sales team is “guiding” customers to see the value of a product, it’s a sign that the product may not offer a clear Delta 4 advantage.
    • What’s missing? Customers should instantly grasp the product’s value without persuasion. For example, Zoom’s simplicity during the pandemic made it a household name almost overnight, with minimal explanation needed.
  2. Dependency on Aggressive Sales If sales are overly dependent on convincing customers, it indicates the product isn’t solving a pressing enough pain point.
    • What’s the fix? Shift focus from selling to improving the product. Dropbox, for example, initially grew through a referral system paired with a product that was inherently valuable—sharing and storing files seamlessly.
  3. Complex, Hesitant Customers Customers in certain segments often have long decision cycles and are hesitant to adopt new tools. These customers only move forward when the product’s ROI is undeniably clear and backed by tangible data.
    • What’s the fix? Focus on building measurable case studies that demonstrate efficiency, cost savings, or other benefits. Salesforce grew by showing how their cloud-based CRM system could save companies money compared to traditional on-premise solutions. ⠀

How to Evaluate a Delta 4 Startup

If you’re assessing a startup (whether as an investor, employee, or founder), use these questions to determine if it’s on track to become an obvious success:

  1. Is it 10x better or just 10% better? Incremental improvements won’t cut it. For example, Gmail didn’t just add a marginal improvement to email—it redefined the user experience with search, storage, and conversation threads.

  2. What friction does it remove? Products that remove pain points (e.g., inefficiencies, cost barriers) win big. For example, Airbnb removed the pain of high hotel costs and limited options, allowing people to stay in unique places around the globe.

  3. Does it compel a behavioural shift? If users need to change their habits, the product must be so valuable that the switch feels inevitable. For instance, Spotify encouraged users to abandon buying music albums and adopt a streaming model with unlimited access for a small subscription fee.

  4. Are customers evangelising it? When customers love a product, they talk about it. If your product isn’t generating buzz, it may lack the “wow” factor that drives viral growth.

The Startup Sweet Spot

Startups that achieve Delta 4 create products that don’t need to be sold—they’re adopted. Customers immediately see the value and can’t imagine going back to the old way of doing things. These products are often:

  • Obvious in hindsight: Once they exist, everyone wonders why they weren’t invented sooner.
  • Built around a clear pain point: They address an issue so pressing that customers are eager to adopt the solution.
  • Sticky: Customers don’t just use the product—they depend on it.

The world of startups is littered with good ideas that fell short because they failed to deliver Delta 4. By focusing on creating transformative, indispensable products, startups can ensure they’re not just another idea but a force to be reckoned with.

PS: I use companies like Airbnb, Spotify, and others to explain our points about Delta 4. This is not an endorsement or promotion of these companies but rather an analysis of their products from a conceptual perspective.