When does "additional customer data no longer enhance the value of an offering? The more slowly the marginal value decreases, the stronger the barrier is. Note that you should judge the value of the learning by customers’ willingness to pay." https://hbr.org/2020/01/when-data-creates-competitive-advantage?ab=hero-main-text …
"If the data becomes obsolete quickly, then all other things being equal, it will be easier for a rival to enter the market, because it doesn’t need to match the incumbent’s years of learning from data."
"Having unique customer data with few or no substitutes is critical..."
"When learning from one customer translates into a better experience for other customers and when that learning can be incorporated into a product fast enough to benefit its current users, customers will care about how many other people are adopting the product."
Peter Fader: "customer centricity" means "actually calculating forward-looking customer lifetime value for every one of them and basically saying who are the most valuable customers, and then-then we start saying, so now what business should we be in?"' https://www.ambitiondata.com/customer-equity-accelerator-podcasts/episode-009-whartons-pete-fader-4-steps-clv-marketing#episode-9 …
1. identify the value of customers at a granular level;
2. for valuable customers, find ways to enhance their value; and
3. do so in a way that they will happily willingly share some of that value back with you.
"focus more on VPA (value per acquisition)."
Peter Fader and Dan McCarthy are doing some of the most interesting work in what might be called "forensics" for subscription businesses. Since GAAP does not require revealing key numbers like churn and CAC there is potential alpha for investors and founders in finding the facts.
Fader and McCarthy:
You can follow @trengriffin.
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