Movement over money.
Sean Smith explains why connecting with your consumer is important in a digital economy and why customer convenience is more important than price.
It used to be an age old solution in business to build a bidding war with your competition.
The lowest price would win, because convenience was on a level playing field.
Price is not necessarily obsolete now, but it matters far less to our inter-connected society than it used to.
Businesses like Amazon are putting others out of business left and right. Most people point at their prices, but that’s not really the case. When you look at the ease of convenience their services like Prime bring — giving next day or same day delivery for any of their products while also being cheaper than most of their competition — the competition doesn’t stand a chance.
People don’t have to leave their house to shop. Think about that. That’s an insane notion that only became possible in the last 5 years.
People care more about their time now more than ever, because now we see the possibilities of the things we can do with our day. Our days are getting longer, because things are getting easier due to technology.
Businesses that understand this will thrive, those who don’t adapt or find their niche in this new age of convenience and demand will dwindle.
No longer does price dictate the outcome of our pocket, we decide based off of our time.
The last 100+ years of economics taught us that price drives demand. Now we're learning that convenience drives it even more.
— Aaron Levie (@levie) July 19, 2014
“People don’t buy products, people buy better versions of themselves.”
As Belle Beth Cooper said best,
Ev Williams even mentioned that the best way to build a billion dollar business now is to “find a business vertical that hasn’t changed in 50-100 years and find a way to make it easier using technology.” This could be applied to hundreds of verticals, even online publishing, which is far from an ancient medium. Take Medium for example, this lovely online publishing tool you’re reading right now. I write here because it’s incredibly easy, it’s beautiful, it’s interesting, and the exposure makes it easier to reach my audience.
Uber took the cab industry and turned it on its head, starting with a simple app and some part-time cabbies running on their system. Now it’s worth billions of dollars with no signs of slowing down. SpaceX obviously didn’t choose an easy vertical, but they were able to achieve what only government associations were able to do to date, to dock a cargo ship to the international space station. This gave SpaceX billion dollar contracts from NASA to keep their astronauts supplied on the ISS.
There are “disruptions” to be made in thousands of verticals, you need only find that unique approach, take out the steps for the customer, and innovate.
In an environment where people are trying to “optimize” and automate as much of their life, and success as they can, those who help them succeed in this ambition will succeed in business.
This doesn’t bode well for business reluctant to change, but for entrepreneurs ready to build better services, this is a ground breaking time to live in.
“We help take the pain away” — this may be one of the best selling lines I’ve heard in a pitch for content marketing. It’s honestly what people want, whether you’re doing marketing for a business, or easing the pain of people dealing with a cable company to cancel their service.
People want their pain to go away.
The supply and demand curve has warped, it’s been turned on its head.
We’re all better for it too, because when people stop thinking about money, and instead think about what they can do with their time, we all move forward.
Movement over money.