Sealy and IDEO first collaborated in 2008, to rethink the design of its Stearns & Foster line. For years, Sealy, the largest mattress manufacturer in the world, had taken the standard industry approach to selling mattresses and watched market share and sales flatten; it knew something had to change. Stearns & Foster evolved from a single product design into a keystone for transforming the organization.

IDEO helped Sealy use actionable consumer insights to develop a scalable design methodology and new brand principles, which it applied to product design, operational and manufacturing decision-making processes, and sales and marketing strategy. This “brand-to-product” framework was subsequently used for three separate and consecutive product launches—Stearns & Foster, Embody, and Posturepedic—resulting in an overhaul of 85 percent of Sealy’s mattress portfolio.

Tempur-Pedic was already working with IDEO on a new mattress design when it acquired Sealy in 2013. It was also interested in how design thinking and human-centered design could improve its business. Once solely focused on the technological elements of designing a mattress, together with IDEO, Tempur-Pedic redesigned the outer shells of its mattresses to reflect the quality on the inside. This design change led to the company to look at new ways to infuse design into their products.

“The initial project was to design the mattress,” said Thomas Overthun, associate partner and design director at IDEO. “But the second project was to create a whole design language from the mattress out to what it meant for any other product, from pillows to blankets and other accessories. It eventually became bigger than just the mattress.”

Working on the Tempur-Pedic/Sealy relationship has been gratifying, said IDEO partner and design director Michael Hendrix, because although home goods can be thought of as simply products, nothing could be further from the truth. IDEO and Tempur-Pedic/Sealy changed the course of the mattress company's business through the transformative power of designing where, and ultimately how, people sleep. And in the process, the organization itself changed as well, moving siloed departments to cross-functional teams, with the brand division central to their cooperation, which led to consistent and aligned decisions across the board.

Some of the projects include:

Stearns & Foster Luxury Mattress
Sealy teamed up with IDEO to develop a design language for Stearns & Foster mattresses that would reestablish what the brand stood for. Through redefining brand principles and rounds of prototypes that focused on evocative details, the new Stearns and Foster mattress was the highest rated in Sealy’s portfolio since it started keeping records, and initial retailer orders were three times what management projected.

Next-Generation Posturepedic
An icon in the mattress industry was brought into the 21st century by developing a new product that delivered on the long-running promise of the brand. Together, IDEO and Sealy designed a product that focused on holistic back health. In its earnings report, the company said US bedding sales for the quarter were up 10.6 percent, to $253.4 million, a figure driven by the new product line’s introduction. According to Sealy’s Q3 earnings report, the Posturepedic launch represented the largest and fastest rollout in the company’s history.

Embody by Sealy
The project began by defining the market opportunities for all-foam beds, and ended with the modern, streamlined Embody mattress as well as a simplified design language, free of industry jargon, to help retailers talk about the mattress to customers. “Sealy collaborated with IDEO to create an approachable and attractive mattress that delivers the simple, healthy rest consumers want with a selling story they can easily understand,” said Jodi Allen, Sealy’s Chief Marketing Officer.

Tempur-Pedic Sleep System
Best known for the revolutionary, NASA-proven Tempur material inside its mattresses, Tempur wanted to transform the exterior of its mattresses to match the caliber of innovation inside. Together with IDEO, Tempur created a new sleep system, including an easily removable and washable fabric mattress cover. “Tempur-Pedic was born of innovation, but we were never a design-driven company until we worked with IDEO,” said Patrice Varni, senior vice president of brand marketing, Tempur Sealy North America, LLC. “Seeing consumer need in a new way through IDEO’s eyes has transformed us. Our product design, our creative psyche, our brand are all fundamentally changed by this sharper focus. This collaboration has given us all a renewed sense of pride.”

The challenge of how we’ll feed the exploding world population in the future—in a sustainable, cost-effective, and environmentally friendly way—is seeding an agricultural revolution in Europe.

In 2012, INFARM founders Erez, Guy Galonska, and Osnat Michaeli found that vertical farms could be a solution to urban self-sufficiency. These farms could allow people to grow vegetables and herbs in small spaces, with no soil and far less water.

An approach that’s captured the imagination of futurists for decades, vertical farming involves growing vegetables and herbs in stacked units or inclined surfaces, within which moisture, light, temperature, and nutrients are monitored, and controlled.

After creating their first vertical farming experiment in their apartment in Berlin, the founders brought together plant scientists and industrial designers to explore and develop vertical farming’s potential.

Since then, the startup has created custom growing systems for clients including Airbnb, Mercedes-Benz, and Weber. Most recently, INFARM installed a vertical farm growing herbs and vegetables at the Berlin branch of German supermarket chain Metro, the fourth-largest retail chain in the world, to sell to the public. It’s been profiled in Wired Germany, Süddeutsche Zeitung, The Guardian, and Zeit.

INFARM collaborated with IDEO to further explore their B2B offer, including concepts for the industrial design of the stackable, modular, climate-controlled units; the interaction design of an accompanying app to monitor and control the units, and its business model.

Urban farmers will sign up for “farming as a service,” comprising the units themselves, as well as a monthly subscription for seeds, cartridges filled with nutrients, and a pH regulator. Because they’re stackable, the modules can be scaled to suit anyone from a home grower to a restaurant chef or supermarket owner. And Erez claims a 1 square meter growing tray can yield four to six mature plants every day, 365 days a year, doubling that of state-of-the-art hydroponic greenhouses.

As well as remotely regulating each unit’s climate, the app will educate growers about new vegetables and herbs, selling packs of complementary seeds, with suggested recipes for them, and cooking instructions. Aiming to promote biodiversity, the firm will sell rare-breed and heirloom seeds too.

The startup has funding from the EU’s European Pioneers fund, and is now looking to secure investment to accelerate software development and ramp up their hardware production capabilities. Quite literally, it's growing its business.

Sesame Workshop is the nonprofit educational group that revolutionized children’s television with the launch of the landmark Sesame Street program in 1969. The show, which has since become a household name, is now watched in more than 150 countries worldwide. The Workshop also creates educational content for new media platforms, and partnered with IDEO to design a line of Sesame Street–themed apps for Apple’s iPhone. The Elmo Calls app, which functions as a utility app for parents and as an entertaining behavioral-development app for kids, is now one of the Top 100 paid iPhone apps in the iTunes store.

The collaboration began with a mutual desire to bring the show’s beloved characters to the iPhone platform—and to do so using a human-centered design approach. Child-development experts, educators, toy and interaction designers, and even the Sesame Street puppeteers weighed in on the design decisions. The team also worked closely with families throughout the project—from initial concepts to early prototyping to the final development—in order to stay focused on how children actually use the iPhone for play. The games were designed accordingly. For example, the team omitted menus from the Sesame Street apps to keep the experiences simple, playful, and fun for a young child. And each game features exclusive new Sesame Street videos, allowing players to enjoy “lean back” moments along with interactive ones.

The resulting iPhone applications let children engage with the favorite Sesame Street characters in a whole new way. Kids touch, shake, swipe, and tilt their way through original games featuring Elmo, Grover, Bert, Rosita, and the Count.

The titles, all of which are available from iTunes, include:

• Elmo Calls: Engages 2- to 5-year-olds in listening-skills practice and active participation during everyday situations.
• Elmo’s Monster Maker: Allows kids to create unique monster friends that dance and play with Elmo.
• Sesame Street Video Maker: Lets kids star in their own music videos, mashing recordings of themselves with popular Sesame music videos and adding their own stamps and special effects.
• Sesame Street Makes Music: Helps kids explore an array of instruments as they contribute to new renditions of classic preschool tunes with their Sesame friends.

How do you know when you’re successful in your work? You can check off a list of technical skills and expertise you bring to the table. You can use a career development rubric to make sure you’re hitting the right goals. But often, it’s your behaviors—the intangibles that are the most difficult to articulate—that make the most impact. Things like your ability to stay optimistic or your willingness to adapt when there’s no roadmap.

Because of the nature of our work at IDEO, these intangibles are a big part of what defines the experience of working at the company. So in 2012, a global team of designers from our U.S., Europe, and Asia offices came together to codify these values and behaviors as part of a larger effort to evolve IDEO’s career development platform. More often than not, when IDEOers hit road bumps in their career, it was not about what they were doing, but how they were doing it.

The team agreed that, in addition to identifying the technical requirements needed to progress through one’s career, it was just as crucial to give IDEOers the tools they need to navigate the complex culture. So they captured the values they believed were foundational to the culture and most strongly shared across the IDEO community, and put them to paper in The Little Book of IDEO. The title is meant to reflect its purpose for readers—a handbook that’s compact, useful, and free of any corporate jargon.

For IDEO-ers, this red cloth-bound guide provides a shared lexicon around both the hard and soft skills we need to succeed. It describes things like why IDEO is so loosely structured, where it comes from, and where it’s headed.

Most importantly, the book identifies the organization’s seven core values. These are by design specific, actionable, and integral to the kind of work we do and the environment in which we do it, going beyond common sense and general ethical practice. The intention: to foster meaningful conversations within the community about life at IDEO, and how to achieve success along the way. With each succinct expression comes a deeper explanation of why it matters, and how it shapes our experience at IDEO.

Over the years, the book has been roundly embraced by the IDEO community as an honest articulation of who we are, as opposed to what we aspire to be, and what we appreciate most about working together. When IDEOers first got their hands on it, a movement took shape to create videos that bring each of the core values to life. To depict the value of "Embracing Ambiguity," for example, New York-based designers built a makeshift cardboard rowboat, and while simulating a storm, navigated their way through uncharted territory with teamwork and optimism. San Francisco produced a Jacques Cousteau inspired look at the lifestyle and behaviors of designers in their natural collaborative habitat.

Through the process of making the videos, IDEOers came together to reflect on each of the values, talking through what resonated and what didn’t. It gave them a sense of ownership, and a platform through which to share their interpretations.

A Global Conversation

IDEO has a global presence—offices in two countries in Europe, two countries in Asia, and multiple locations across the U.S. As an organization that embraces a human-centered culture, it felt important to learn if the values resonated with the IDEO community in all of these locations, especially in a country like China, whose working culture is so different from the west. We saw the authenticity and resonance of the values as essential for attracting, motivating, and retaining local talent.

So how did The Little Book of IDEO land in Shanghai? Exploring this question would illuminate insights into how our own clients are often challenged to keep their company culture resonant within the global landscape.

A team of IDEOers in our Shanghai office took on the challenge of exploring the meaning behind each of the values. They were surprised with what they discovered—that despite the firm’s Western origins, locals felt largely connected to the values. It even helped to further solidify their identity as a community, even if it may have been in tension with local working culture, because it was rooted in a set of shared beliefs.

In some instances, the Shanghai team built on the existing values in order to refine the meaning for the local context. For example, the core value "Be Optimistic" rings true, but could sound naive when translated directly to Chinese, implying "rose-tinted glasses.” So in the Mandarin edition, an extra phrase was added to convey the measuredness we mean when we talk about optimism at IDEO. The lesson here: The treatment of something as fundamental and nuanced as our values requires authenticity and emotional connection, and therefore more of a transcreation process than straight translation.

Lasting Power

As an organization, we are designed to be flexible. This means we’re always changing—even when it comes to how we are structured—so that we can respond to the kinds of challenges that clients come to us for. In the midst of our constant evolution, The Little Book of IDEO is as resonant today as it was when it was published.

How’d we end up on this culinary carousel, from learning about kelp’s role in addressing climate change to understanding the significance of seeing kernza, an unusual perennial grain, in the cereal aisle by 2040? We spend our days working in the food world, hearing about its challenges: Hunger is rampant, but so is food waste, and the food system is responsible for 25 percent of global carbon emissions. This leads many to believe that the system is broken. But it’s not broken—it was designed this way. And if it was designed this way, then it’s time for a redesign. That’s what IDEO’s new narrative podcast, Food by Design, is all about.

The experts featured are living proof that we can create a system that’s nourishing for people and the planet. Below are some of the new ideas, staggering statistics, and inspiring stories they generously shared with us. Let’s dig in.

A human-centered approach that prioritizes equity is required

The food system is inherently about food, but without humans, the system doesn’t work. Improving a system that’s been ravaged by multilayered crises—health, racial injustice, climate, and economic—depends on how we value those doing the actual labor in it. The role and importance of human-centeredness and equity (and the current lack of both) can’t be ignored.

We spoke with Saru Jayaraman, a professor at the University of California Berkeley who leads the Food Labor Research Center and founder of the non-profit One Fair Wage. In episode seven, she explains how the legacy of slavery still impacts how much money restaurant and food service workers make today—sometimes as low as two dollars and thirteen cents an hour—despite the cruel irony that the industry is the largest and fastest growing in the U.S.

Dr. Ricardo Salvador, Director of the Food and Environment Program at the Union of Concerned Scientists, adds to Saru’s perspective in a later episode: “We've been creating people that are affluent and at the same time we've been creating people that are poor,” he says. “All of that is a direct consequence of the way that the agricultural system in the United States was born. The system of slavery did not completely disappear. It has been transformed.”

We need both individual and structural change—it’s not an either/or situation

We’ve been told that individual action is enough, but we’ve also been told that it isn’t—we need bigger changes. Eating red meat is often the subject of this debate, as animal agriculture is the second-worst contributor to greenhouse gases after fossil fuels. But here’s the thing: we need both individual and structural change to design a better food system.

While doing research for our second episode, we met Lisa and Loren Poncia of Stemple Creek Ranch, cattle ranchers who now consider themselves carbon farmers. Through practices like rotational grazing (which allows pastures to rest and regenerate), they actually sequester carbon into the soil, keeping it from being released into the atmosphere where it contributes to greenhouse gases that cause climate change. When we recorded the episode, Stemple Creek Ranch was sequestering enough carbon to offset 285 passenger vehicles per year, and that number is growing.

With additional incentives, like those baked into the Federal Farm Bill, even more ranchers like Lisa and Loren might adopt these practices. “I wish that the federal government would jump on board and subsidize carbon and carbon sequestration instead of corn and soy,” says Loren. “In a very short amount of time, we'd have a lot of carbon stored in our soil.” (That’s a good thing.) In our sixth episode, we talk about how producing red meat conventionally can create nearly 10x the emissions of vegetables. But if individuals buy regenerative red meat from carbon ranches like Stemple Creek Ranch, it could help shift the rest of the industry this way and lead to more structural policy changes, having a huge impact on the health of the entire system.

Another example of the need for both individual and structural efforts comes from Karen Leibowitz and her partner, who established a climate-minded restaurant in San Francisco. Every detail of the Perennial aimed to minimize carbon emissions, from using recycled appliances and napkins meant to be fed as compost to worms to hydroponically-grown vegetables.

But just one business can't change the system. Armed with this insight, Karen and her partner closed the Perennial to scale their ambition across many restaurants—creating a more effective way to fight climate change. Their nonprofit Zero Foodprint asks restaurants to add a one percent charge to their bills and use those funds to fight climate change.

Embrace mental “flips” and blank slates...or cardboard boxes

Again and again, the individuals we interviewed shared that in order to create a better food system for all people and the planet, we must build something entirely new—whether reimagining the restaurant business model, altering what we believe is edible, or redefining the meaning of sustainability.

We talked to chef and restaurateur Camilla Marcus in our seventh episode, who is rethinking the power dynamic that gave rise to the harassment and racial and gender inequities in the restaurant industry. Her restaurant west~bourne turned the “front-of-house, back-of-house” hierarchy—which Camilla describes as a caste system in disguise—on its head. During an intensive training program, every team member becomes fluent in all areas of the business, from dishwashing to wine tasting. “If you envision a world a different way, you have to start from the beginning and be willing to redesign how everything is done,” says Camilla. “You can't just hope for a different outcome and keep using the same process and system.”

Like Camilla, Mr. Lyan—a professional moniker for Ryan Chetiyawardana—is another food visionary. Mr. Lyan was crowned world’s best bartender in 2015, and his bar Dandelyan, now reopened as Lyaness, was named the world’s best bar in 2018. He’s known for experimenting with “closed loop cocktails”—any waste from the production of these drinks is used as ingredients for future drinks. For instance, he pressure-cooks leftover citrus and uses the resulting flavorful stock to create fruit jelly desserts. He doesn’t stop at fruit: Mr. Lyan even boils down cardboard delivery boxes with lemongrass, chamomile, sugar, and water, then strains it and turns it into a syrup. “People saw it as an affront,” he tells us. “So much of what we faced was this idea that the world that we were inhabiting—you know, luxury food and drink—was at odds with the idea of sustainability.” (Until, of course, a restaurant critic said that the drinks were the best he’d ever had in the city.)

Nearly a year before we found ourselves professing our love to baby kelps, we were carpooling home from IDEO’s San Francisco studio to our homes in Oakland. As our conversation quite naturally ping-ponged from an upcoming CSA delivery to methane-producing cow burps to Indigenous agriculture to aquafaba (a chickpea byproduct) to workers’ rights, a creative lightbulb went off. And the idea for Food by Design was born.

We wanted to connect the dots across all these topics and better understand the potential opportunities for design. So we set out to explore the question: How might we build a climate-positive food system that favors the many instead of the few? We hope the array of voices and stories shared on Food by Design not only demonstrate the breadth, interconnectedness, and gaps of the food system, but just how many people depend on it being sustainably and equitably redesigned, and can help us do this, together. Listen to some of their stories today on Apple Podcasts, Spotify, or wherever you tune into your podcasts.

On a chilly December morning, Bri Warner gave us a tour of her kelp facility in Saco, Maine. The room was filled with giant tanks of seawater containing thousands of baby kelps. “We change their tanks constantly,” said Bri. “We play them music. When nobody's looking, I'll lean over and be like, ‘Hi, babies.’” On another occasion, we spent an entire afternoon chatting up Larisa Jacobson of Soul Fire Farm, a BIPOC-centered community farm committed to ending racism and injustice in the food system.

While the text is close to coherent if you can read Latin, it appears as legible nonsense to the rest of us. Lorem ipsum looks realistic but doesn’t convey any information to the reader that could otherwise color their interpretation of the mockup. This is great for text-based layouts, but when it comes to placeholder data, we don’t really have an equivalent. What if we had something like Lorem ipsum... but for numbers?

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The numbers problem

This idea came from a real project: IDEO data scientist Chris Kucharczyk ran into a problem while prototyping a dashboard for a client. The dashboard was supposed to show sales data for business owners. He was using placeholder data in the mockup, but it just didn’t look right. At IDEO, we often use placeholder data in these mockups before we know what kind of real data we need. It allows us to prototype, then pivot quickly if and when we learn a different kind of data is needed.

By sharing a prototype, Chris was hoping it could help his team talk to the client and better understand what questions business owners would have when coming to the dashboard. More specifically, he and the team were wondering this: How do these business owners use data to help them run their business, and what would they change if they saw certain patterns in the data

The foreign language effect

We’ve learned that people often interrogate numbers more scrupulously than they do other parts of a design and are very sensitive to numbers looking “wrong.” Whether it's restaurant data or health data, a wrong number—even if it's a placeholder—causes the viewer to want to correct that "wrong-ness" rather than respond to the placement, color, or size of the numbers.

In fact, numbers that appear uninformed can derail a conversation even if the point of the conversation is to find out what kinds of numbers are needed. While mockups plainly look unfinished, numbers always look high-fidelity due to the “foreign language” effect.

For example, if you were to pick up a newspaper written in a language you didn't understand, your eyes physically look at that differently. But if that newspaper has charts or graphs, you'll be able to wonder what those are and what they mean because you can read and understand the numbers visually.

Back to the project. Chris had a few options. If he left the numbers at zero, the dashboard wouldn’t have anything to visualize. On the other hand, if he populated them randomly, it would look nonsensical. Any pattern chosen would need to be relevant to the larger context of the project. What he needed to do was come up with an alternative written language for numbers that mimicked the effect that using Latin has in copywriting and layout design.

Designing Norum Ipnum

To respond to this problem, we went down a creative rabbit hole with software designer Ben Syverson to design a collection of font families called Norum Ipnum ("No" as a play off the typographic shorthand of the numero № and "num" substitution as in "number") that are alternatives to numeral letterforms. They act as visual placeholders without conveying data. (The font families can be downloaded for free here!)

This is an example of how it might be used in a mockup:

Here’s how it all came together. In the IDEO Chicago studio, Chris and another data scientist, Joe Gambino, set up a foamcore board to capture ideas from the studio on Post-its.

They asked for people to add a fake digit idea to the board as they passed by. We got a lot of ideas to work from, but one idea stood out as an interesting exploration.

What if we used the tried and true seven-segment display as inspiration for what these numbers could look like? You might be familiar with this type of display from a digital watch or a microwave. The reason these displays are used in electronics is because they can communicate all ten numerals by “lighting up” patterns of the seven simple lines they contain.

Using the seven-segment display as inspiration, Joe then wrote a Python script to draw out all of the different non-numeral permutations of what a seven-segment display could show. We then took that print-out and starred the different characters that looked different enough from letters and numbers to have a working set of ten numerals.

This was a great start to narrowing down a set of digits. Using this set of digits, we continued the process using the brief: If these digits were the abstracted form of an original numeral, what did those numerals look like?

After this initial exploration, it seemed like there was something here we could work with. At this point, Ben suggested we do a range of weights and typefaces of these numerals to help aid in layouts, and offered to work on a serif version. Ben recommended the fantastic tool, Glyphs, that we used to build these font families, and after a few revisions, we ended up with the collection presented here.

There are two font families in the set: sans and segment (with serif to hopefully come in the future). For sans, these have six different weights and italics. They are also selectable between tabular and proportional lining.

We hope these fonts are fun to play with and useful for your mockups. Please let us know if you find an interesting use for them! The families are Open Font licensed under the SIL-OFL, and we have provided the Glyph App source files, so feel free to make your own variants and add to the collection. The Github repository can be found here.

We hope you find some fun uses for it!

If you’re a designer, chances are you’ve heard of Lorem Ipsum—a block of text loosely based on Cicero's De finibus bonorum et malorum that's commonly used as placeholder copy in graphic layouts.

Some speculate that this rising tide might lift all boats, nudging every business to become a subscription business. But as the last six months have shown, the impact of COVID-19 has been unevenly distributed; winners and losers are determined by how favorable their offering is to the everything-from-home context. While all companies are working to make their products and services remote-friendly, this can obscure the fundamental question of how to design a compelling and intentional membership proposition, one that can endure and flex to exogenous shocks. In this article, we’ll explore six levers for designing membership and fostering loyalty right now and in the future.

A membership offering must accomplish either of these two things

There is no one formula for designing a compelling membership offering. But membership should be more than a basic loyalty program. It must offer either exceptional rational value or deep emotional value.

Rational value implies tangible benefits: customers know exactly what they’re getting from the offering, and it’s easy and straightforward to justify and explain their continued loyalty. Emotional value is intangible but at least equally powerful. While it may not be quantifiable, it creates genuine connection that generates sustained engagement and loyalty.

There are various levers—value drivers to design a membership offering around—that ladder up to and provide rational or emotional value. Cost, convenience, and incentives and rewards provide rational value; identity, community, and experience provide emotional value.

Designing for rational value: Cost, convenience, and incentives and rewards

LEVER 1: COST

One fundamental value proposition of a membership model is its ability to offer customers savings. By committing to a monthly or annual fee, subscription-based organizations can often afford to provide members with preferential pricing. This is the most basic element and value driver of a membership rooted in rational value.

One of the originators of the warehouse model, Costco offers members bulk quantities of goods at attractive prices. Costco prioritizes savings beyond other benefits, like high-touch customer service or an elevated store experience. And yet, Costco consistently receives top marks for customer satisfaction. They achieve this through an unwavering understanding and dedication to their key value proposition.

Costco has been able to sustain a successful business rooted in cost savings because of significant economies of scale, which help create barriers of entry for potential competitors. In many other industries, attempts to define and differentiate a value proposition on price and discounts will almost inevitably lead to brutal competition and eventual commoditization. Accordingly, companies considering cost as a membership lever must carefully think through the strategic and viability implications within their particular market.

Prompts for teams:

• Do your brand and mission align primarily with the idea of providing savings?
• Can you provide savings to customers while maintaining a sustainable business?
• What benefits will you not provide in order to deliver on cost savings?

LEVER 2: CONVENIENCE

As they say, time is money. As a source of rational value, convenience is as compelling as cost savings. In today’s convenience economy, technology is being leveraged to save time and effort in every market and pocket of daily life.

Amazon’s largest lever for rational value is the convenience it provides members. For an annual fee of $119, Amazon Prime members can get almost anything they could possibly need shipped to them in two days or (increasingly) less. This one benefit has allowed Amazon to forge a relationship with members that transcends loyalty to resemble something closer to dependence. This convenience proposition has become so powerful that it arguably provides members emotional value, too. Ask almost any new parent and they’ll probably rank Amazon somewhere between a utility and a member of the family. Providing rational value to such a degree that it also drives emotional value is a rare achievement, but demonstrates how impactful convenience can be.

Prompts for teams:

• How critical is convenience to the value proposition that you provide customers?
• What are the biggest challenges and bottlenecks your customers face in fulfilling their needs on a daily basis that your industry, market, or product area can help address?
• Can your company provide something to customers that they truly can’t live without?

LEVER 3: INCENTIVES & REWARDS

Incentives and rewards are often employed as part of membership programs to drive engagement and encourage specific behaviors such as sign-ups, spending, and referrals. They tend to be utilized in industries with limited differentiation, such as airlines and credit cards.

The credit card industry in particular has developed an incentives model that uses referrals, sign-up bonuses and points multipliers to drive customer acquisition and encourage early spending. This model has quickly become both the industry norm and customer expectation. In 2016, Chase made headlines by offering 100,000 points for its Sapphire Reserve card, the most extreme sign-up incentive the space had seen. Chase also won customer favor by simplifying the points to dollar value to 100:1, a calculation which many other credit cards obscure to make comparison more difficult.

There’s no denying the ability of financial incentives to drive behavior. But keep in mind, space for innovation is slim and an over-reliance on this lever runs the risk of creating a transactional relationship with the customer. Depending solely on financial incentives can also attract customers who are focused on “gaming” the system. Moreover, it creates an inevitable race to the bottom where eventually no player can viably compete. Balancing incentives and rewards with other rational or emotional value drivers can help mitigate these effects.

Prompts for teams:

• What is truly differentiating about the incentives and rewards that you can offer?
• How can you design your incentives and rewards to be less transactional and instead reinforce your core value proposition?
• How might you leverage incentives and rewards with other sources of value in your loyalty program?

Designing for emotional value: Identity, community, and experience

LEVER 4: IDENTITY

Some companies and brands are able to command loyalty through the strength of their identity, which is reflected in their brand, mission, or values. A membership rooted in identity is enabled when a company can rally customers around shared values and reinforce them through its offering, allowing members to see and express themselves through their participation.

One example is Ellevest, an investing platform for women that aims to educate, empower, and advance its customers in pursuit of their financial goals and to close the gender wealth gap. Ellevest differentiates itself from the many other investing options in the market through this dedicated focus, which is reflected in both its purpose and product—its algorithm recommends an investment plan that is designed to help address the gender investing gap.

In June 2020, Ellevest added a membership program to its core product that includes new features and services that strongly tie to their core mission. In addition to banking and debit products, the membership provides career workshops, coaches, and financial planners. While all of these benefits are designed to further members’ financial success, Ellevest is selling more than these services: they’re asking members to buy into their mission. An Ellevest member could receive similar products from any number of institutions. Being a part of the membership signals the salience of identity—both that it is key to the experience of managing money and an alignment of values.

Prompts for teams:

• What does your organization stand for and what are its most powerful, emotionally rich territories for design and differentiation?
• How can you tap into your organization’s mission or purpose as a way to create more emotionally resonant services and experiences?
• What would it look like to evolve the membership offering to reflect these values or enable members to express themselves?

LEVER 5: COMMUNITY

When community is a key value proposition of a membership, members not only feel connection with the brand, but also a sense of belonging and kinship with other members. From religious communities to career networks to social media, being part of a group creates powerful emotional currency.

WW, formerly known as Weight Watchers, is a company that has differentiated its membership offering through community. The organization’s promise is rooted in its origin story: a Queens mom who began inviting people into her home to discuss weight loss strategies. The concept quickly grew into a global organization that outlives various fad diets and health trends because of its core value: guiding people in their weight loss journeys through social and emotional support. Whereas before, every diet and nutritional program was designed to be undertaken alone, WW was designed to be interactive and communal through weekly group meetings. This structure provides people with support, inspiration, and accountability. The group convenes to share challenges and victories and provide each other with encouragement. The impact and effectiveness of this value proposition is reflected in WW's strong retention: many members continue attending meetings for years even after achieving their goal.

Prompts for teams:

• How authentic is the promise of community for your organization? Do members truly interact and benefit from other members?
• What is the role of exclusivity in your membership? Exclusivity is a powerful driver for people, but what does it say about your brand and what it stands for?
• How can you empower your community with roles, tools, rituals, and shared experiences?

LEVER 6: EXPERIENCE

Finally, there’s the element of experience, which can be a vague, squishy term that many companies claim to offer. People are drawn to memberships that provide unique, enriching, and inspiring experiences. An experience can be physical or digital, a product or service, communal or individual. While it can be delivered with pomp and circumstance, meaningful experiences can also be remarkably simple.

An example of an exceptional experience born out of a simple idea is SoulCycle. Interestingly, SoulCycle doesn’t technically offer membership; they sell individual drop-in classes or class packs. But with its cult-like following of diehard riders, SoulCycle certainly feels like a membership. The fitness start-up achieved this status through their distinct vision for what a spin class should be. The founders recognized that when exercising, people are looking not only for a physical release, but a mental one, as well. While most cycling classes focused on providing a great workout, SoulCycle designed an entirely different kind of ride: a collective, uplifting, and emotional experience that is as much a part of its value proposition as the sweat.

During COVID-19, SoulCycle has suffered, given its reliance on in-studio group sessions. By contrast, Peloton is soaring because it was designed to be experienced at home. As SoulCycle pivots to offer their own at-home bike, the way it evolves the experience to elevate its collective and emotional DNA will be crucial for success.

Prompts for teams:

• What are the needs that your experience is designed to serve?
• How can experience be a differentiating factor of your membership offering?
• What qualities define your experience, and how might you elevate or amplify the value they provide your customers?

The power of offering rational and emotional value

Cost, convenience, and incentives and rewards can be powerful sources of value in membership because they offer rational, straightforward value. However, because they provide limited dimensions for differentiation, they can lead to competition and be challenging to sustain. Designing around emotional tenets—identity, community, and experience—presents different starting points and opportunities for membership offerings.

But memberships that draw on more than one of these levers—particularly those that generate both rational and emotional value—will be especially effective. While Costco’s core value proposition is rooted in cost savings, its business provides emotional value, too, through its famous food court and food and beverage sampling experiences and additional services. This combination of rational and emotional value has proven incredibly compelling in both customer experience and membership proposition: Costco has some of the highest customer satisfaction scores and retention rates in the business.

Keep your purpose, mission, and value proposition top of mind

The six levers we discussed can individually, or more powerfully in combination, form the foundation of a differentiated, value-driving membership offering. But in any of these territories, companies must have (or earn) their customers’ permission to play.

At its core, membership demands an ongoing relationship and commitment from its customers. Designing membership for this level of loyalty boils down to both an organization’s value proposition and who they fundamentally are: What is the essence of what’s being provided through membership, and what does the company stand for? And critically, do these two things match—does the membership feel authentic to a company’s purpose?

By aligning purpose with a compelling rational or emotional value proposition, companies can cultivate reciprocally authentic and lasting customer loyalty.

Illustrations by Simon Heather

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In the last decade, we’ve witnessed the explosion of subscription-based “membership,” from movies, music, and audiobooks to elite global communities, razor blades, and dog food. While this phenomenon has been fueled in part by the growth of digital channels, targeted marketing, and the rise of the sharing economy, what’s ultimately driving companies across industries to adopt a version of this business model is the irresistible promise of recurring revenue and sustained customer loyalty.

My “partner” that day was a technology called GPT-3 from OpenAI. You may have heard of it already; if not, you can think of GPT-3 as a really good autocomplete. Like, shockingly good. Once I shared some of the output of my brainstorm with others on Slack, there were plenty of 🤯reactions—and honestly, our minds are still blown. But clients and design teams will need to tread carefully and watch their ethical compass as they imagine inspiring, human-centered applications for this new tool. As with any new technology, there are new risks to account for. Here's how I started my experimentation.

How to run a virtual brainstorm

In order to work with a so-called “transformer model” such as GPT-3, you feed it a pre-written prompt, then the model uses everything it's seen before (in this case, a substantial portion of the internet) to guess what should come next.

I wrote some context: This is an IDEO brainstorm, which follows our 7 Rules of Brainstorming, including “encourage wild ideas.” I gave GPT-3 a real client challenge from a past project: The team is developing a new app for a bank to encourage millennials to better utilize savings accounts. Then I wrote a brainstorm prompt: How might we help young people turn saving money into a lifelong habit?—and fed it five example ideas.

As soon as I pressed submit, the model began churning out new ideas. Not all of them were gold, but many were perfectly good brainstorm concepts. After all, the rules also tell us to “defer judgment” and “go for quantity.” Without cherry-picking too much, here's a sample of some of the ideas it generated:

• Allow the user to share their saving goals with friends and have a community of people who will cheer them on or challenge them if necessary
• Reward the user with real money if they don't spend money at all in a month
• Allow the user to set up “fun budgets” (aka “triggers”) to save more money, e.g. whenever they go to Target, they'd get a pop-up asking if they'd like to put $5 towards savings
• Similar to the Future View idea, show how much more could be saved if the user decides to forgo a coffee every day or splurge on new sneakers instead of taking an extra vacation

In the last example, you can even see the model “build on the ideas of others”—another rule of brainstorming—by riffing on an idea called Future View that I had given in the prompt.

This stuff is on par or better than some of what I've seen from humans. Some [of it] is worse, too. But that anything is better is wild.

An IDEO Director on GPT-3's brainstorming output. Watch out, humans.

Another colleague suggested we tweak the prompt we gave GPT-3 to encourage it to use analogous inspiration, which primed the model to produce some truly wild ideas:

• Have “clowns” jump out of ATM's, making it less fun to withdraw money
• Create a virtual reality experience where users are in an arena full of savings monsters, and need to slay them by depositing money into savings
• Create a “Savings Monster” similar to those featured on Chinese lottery shows where viewers have to guess the amount saved in order to win money

“I'd love to know what a Savings Monster is,” I mused on Slack, and a colleague responded, “Why don't you ask it?” Of course! After the brainstorm, I started a Q&A session with the model (my prompt is in bold):

Q: Quick question: What exactly is a savings monster? You mentioned it twice.

A: I'm glad you asked! This was just an idea that emerged from the brainstorm. A savings monster is a physical manifestation of your savings goal. For example, let's say I want to save $500 by the end of next year. If I deposit $10 every day, that will get me pretty close to my goal at the end of the year, but what happens if one day I don't have $10? Now my savings monster is underfed, and he starts to throw a tantrum (eg. negative cash flow notification).

A: Yes, this is an idea inspired by Chinese lottery shows (and World War Z). We thought it might be fun for users to have a physical manifestation of their goals that they could feed (ie. save more money) when they meet their goals, and starve (ie. spend more money) when they fall short. In order for this idea to work however, the savings monster would have to be very cute, and a bit terrifying.

As it turns out, the model doesn't skip a beat when you change up the input’s format. So I decided to try my luck: In my next prompt, I asked GPT-3 to choose its favorite idea from the brainstorm and create a script for a promo video. Thankfully my virtual brainstorm partner selected the Savings Monster concept. The resulting script was so good that I found an animator to bring it to life.

So what is this good for?

As exciting as this technology is, GPT-3 is not Artificial General Intelligence, and it was interesting to find the edges of its abilities. For example, this model can easily summarize a news article, or turn it into a fairy tale. But it's surprisingly difficult to get it to remove references to a specific person, or change the subject of a certain paragraph.

To put this in human-centered design terms, these large transformers are an extremely valuable way to augment the team during divergent moments in a project, when we're creating choices. The tech struggles, however, in convergent moments, when we're making choices. Thankfully, humans are still required to synthesize massive amounts of information about human needs into concrete human-centered design decisions.

Gotchas

There are two other issues we have to confront when considering transformer models for our prototypes and design recommendations: toxicity and bias. These models are trained on big chunks of the internet, and optimized to produce output that looks like the input. The result is that the model can reproduce the language of a scientific paper just as easily as it can mimic an internet troll. You get the good with the bad.

My experiments sparked a conversation with Jess Freaner, an IDEO Data Scientist with a special interest in ethics and AI. “Though the rules governing how it all works might not be explicitly written on the wall,” Jess told me, “being a product of our world as it exists now and in our past (the internet is an excellent, incomplete archive) we need to consider what GPT-3 reinforces and when it can reveal what needs to be subverted about society.”

Problems with toxicity and bias are not unique to GPT-3. OpenAI is working on both—they have built-in tools to manually and automatically flag output as toxic. They’re also working on the issue of bias, but it’s a thornier problem. These models literally encode a snapshot in time, and are inherently biased to reproduce the status quo. Companies and designers will need to question and problematize the output of these models with the same rigor that we are learning to bring to our human interactions.

Future possibilities

Despite the challenges, it's clear that in the past 12 months, natural language models have crossed an invisible threshold of usefulness, in the same way that speech recognition was frustratingly terrible for decades—until one day it wasn't. Early proof of concept prototypes demonstrate how this type of model can transform a description of an interface into functional UI code. Talk about “declarative programming.” Imagine a future in which the job of a UI designer is to write a description of the interface rather than laying out each button and label by hand. The same description might result in totally different visual expressions or interactions depending on the individual user's needs, interests, or current context.

As transformer models improve, I'm inspired by a future where people are literally in conversation with their software. Users might be able to easily adapt the same app to become a widget in their AR glasses, a quirky voice assistant, or an animated character. Because who knows: for some people, the perfect solution just might be a Savings Monster.

Illustrations by Katie Kirk

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Back in early August, I opened my laptop and kicked off a remote brainstorm. Immediately, my partner started generating a huge number of ideas—a perfect blend of wild, hilarious ideas and pragmatic solutions. That's not unusual at IDEO, but what made it remarkable is that my partner wasn't just remote—it wasn’t human at all.

I help organizations cut through complexity by shaping how they show up, through brand strategy, identity, and storytelling.

Working at the intersection of brand and business, I bring an editorial eye and a bias toward making—turning ideas into tangible experiences that people can understand, trust, and believe in.

My work spans government, healthcare, financial services, media, and consumer goods, from launching Gen Z-focused ventures to building innovation labs and reimagining legacy brands. I relish moments of ambiguity and enjoy translating across teams, perspectives, and priorities to move ideas forward.

I started my career in editorial and digital design, shaping cross-platform experiences and identity systems in publishing and agency environments. That foundation still shapes how I work today: I’m detail-oriented, collaborative, and overreliant on the Oxford comma. I hold a BFA in Visual Communication from the School of the Art Institute of Chicago.

For 25 years, I've asked the same question: Who does this design exclude—and what are we going to do about it?

My work spans human-centered strategy, inclusive design, and qualitative research, with clients ranging from Microsoft, Google, and Verizon to the National Science Foundation, and San Francisco Unified School District.

Before IDEO, I taught elementary school in East Palo Alto and spent a decade doing design work with social service organizations—where I learned firsthand what it costs people when systems are built without them in mind.

I am currently writing User Error, a nonfiction book about digital access and the design decisions behind it. I live in Oakland, California.

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My expertise spans brand, communication, and product design across tech, education, the arts, and social impact.

I believe great work demands both high-level vision and obsessive attention to detail, and only happens through collaboration.

I bring an inclusive, hands-on approach and a deep understanding of business, which enables me to consistently deliver excellence while always asking why.

Before joining IDEO, I worked at the brand firms Pentagram and VSA Partners. I began my career as a designer, leading teams at the School of the Art Institute of Chicago and the Milwaukee Art Museum. I hold an MFA in graphic design from Maryland Institute College of Art and a BFA in communication design from the Milwaukee Institute of Art & Design, and have taught at some of the best design schools in the US.

I am responsible for IDEO’s long-term success in China and working with clients to use design as a tool to enable growth. Specifically, I have helped Chinese companies design holistic brand solutions through the development of their products, communication, services, and innovation teams, and I have helped multinationals expand their presence and influence in China.

I advise global leaders on developing China-led innovation and capabilities.

In over 15 years in IDEO Shanghai, I have worked on projects that use design to elevate the quality of the experience of healthcare products and services, streamline processes that increase productivity, create spaces and programs that promote and enable inclusive communities, and build next generation mobility solutions that are planet-positive.

Before joining IDEO, I worked at Philips Electronics and the Electrolux Group in Italy, the Netherlands, and Singapore on a number of breakthrough commercial products. I am a member of the Young President Organization in Shanghai.

Most AI products today are built for work—a space with clear problems and established systems. One founder noticed a gap: personal life is messier, harder to systematize, and mostly left behind by the AI boom. So she built Cue, a personal AI that lives inside iMessage and group chats, to go where the other tools haven't.

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In this episode, Becca Carroll, IDEO's Chief Strategy Officer, talks with Sida Li, co-founder and CEO of Shared Context Lab, about staying anchored to a human need while the technology around her keeps changing shape, why she treats her business model with the same rigor she'd bring to a product, and what it feels like to build a company at this particular, disorienting moment in AI.

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The conversation also gets into how Sida makes design decisions: the language Cue uses to describe itself, the tradeoffs behind building inside iMessage instead of a new app, and a real story about a business idea that didn’t pan out.

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This is the second in a two-part series profiling founders from IDEO's Startups-in-Residence program. The first conversation is with Johannes Seemann, founder of Sooner, on designing GenAI for the emotional side of money.

Most personal financial tools are built to run the numbers and optimize towards a budget. While that works for some, most people experience money as a lived relationship that does not neatly fit into a spreadsheet. Johannes Seemann and Becca Carroll discuss why money is emotional before it is mathematical, and what a human-centered approach to building a generative AI financial product looks like in practice.

Mina Seetharaman talks with Scott Shigeoka, author of Seek and Head of Curiosity Cultivation at the Eames Institute, about what distinguishes genuinely curious leadership from performative curiosity, how power dynamics shape curiosity, and why practicing curiosity can restore energy rather than drain it.

Mina Seetharaman talks with David Epstein, author of Inside the Box and Range, about why total freedom often produces average work, how leaders can design useful limits on purpose, and what organizations such as General Magic and Pixar reveal about the relationship between boundaries and creativity.