Better is better than cheaper

It is always interesting reading the newsletter of Benedict Evans, former Partner at Andreessen Horowitz. Especially his essays.

One of the latest, ‘News by the ton’, about the challenges of legacy media has an enlightened graph based on Google Trends that shows that over time, internet searches has moved from looking for ‘cheaper’ towards increasingly looking for ‘better’.

It is significant in more ways than one.

On a banal level it shows precisely why traditional advertising as a model is f*****. The value of the message of ‘Get it with 20% off over here’ is just fast eroding and is close to zero. Traditional advertising has reached junk bond status.

On a more strategic level it shows that gunning for ‘better’ is more inline with the expectations and needs of your customers than gunning for ‘cheaper’.

Of course there will always be scavengers looking for a bargain, but as long as you deliver value above and beyond what you charge, you’re in a fundamentally good place.

And more importantly you’re in a more sustainable place business wise. Because you made the commitment towards being ‘better’ and always push for that – and not just prostitute yourself on the cheap.

(Photo: Pixabay.com)

Digging vs servicing

Reading about data being the new oil and the next gold rush being a data gold rush, one thing stood out for me:

It will be interesting to see who becomes the Levi Strauss of this particular mining rush.  Strauss became rich not from mining operations but by selling clothing and equipment to miners…I wonder how much that history will repeat itself in this rush to mine data.  It remains to be seen who benefits or ultimately profits from all the data mining that will happen.

Innovate on Purpose: There’s gold in the data…

Sometimes we are all so busy looking in the same places, flocking for the same opportunities, creating competition and settling for less in the end that we neglect the real opportunites, the underserved ones. Be mindful.

(Photo: Pixabay.com)