It’s the early 1980s. You’re in charge of a fledgling ESPN, and you have two choices:
- Add more college basketball—you’re highest-rated programming—to the schedule.
- Stick with the skiing and billiards you’ve aired for years (because you couldn’t afford anything else).
Which creates the more profitable programming bundle?
When Warren Buffett coined the term “economic moat”, he stated that the products that have wide, sustainable moats around them, are the ones that deliver rewards to investors.
That’s why determining the competitive advantage of any company is key to investing, to which moats were initially tethered: a bigger moat makes a stock a better bet.
But the implications are broader, for companies large and small. An effective moat doesn’t require Amazon’s distribution network or Microsoft’s monopolistic software strategy.
Good user research asks the right questions to the right people. If you fail on either account, you may make million-dollar decisions on bad data.
The classic graph for the product lifecycle is a sales curve that progresses through stages:
- a sharp rise from the x-axis as a product transitions from Introduction to the Growth phase;
- a sustained, rounded peak in Maturity;
- and a gradual Decline that portends its withdrawal from the market.
Each stage of the product lifecycle has implications for marketing. But an MBA-friendly curve rarely translates to reality. The goal of product lifecycle marketing is not to match the curve but to outline what may work best now and plan for the future.
If you’ve ignored the design and content of your “thank you” page, you’re neglecting:
- Recent purchasers.
- New leads.
These are some of the highest value segments of an online audience, yet what most sites decide to show them is an afterthought.
“How can a person be induced to do something he would rather not do?”
Neuromarketing assesses how our brain reacts to stimuli, not simply what we self-report in qualitative surveys. These are truths that our impulses write onto MRIs. Sometimes, as several studies below illustrate, those two systems—the conscious and subconscious—offer conflicting interpretations.
If you rely on search engine traffic, conversion optimization starts before visitors get to your site. Why? Sitelinks.
Third-party cookies are the new Flash. Safari and Firefox have already started to wean advertisers from them. Now, reluctantly, Google is, too.
Google plans to end Chrome’s support of third-party cookies by 2022, and they created a Privacy Sandbox to test new ideas and solicit feedback. Decisions that affect Chrome—with a nearly two-thirds market share—are decisions that affect the Internet, especially paid advertising.
Your current customers will never be excited about paying more. But that’s not why raising prices is so difficult.