The Curve: How Smart Companies Find High-Value Customers

The Curve How Smart Companies Find High Value Customers It s the ultimate business question of our time How do real companies make money when customers expect and often get products for free There are millions of potential customers in the world Most of th

  • Title: The Curve: How Smart Companies Find High-Value Customers
  • Author: Nicholas Lovell
  • ISBN: 9781591846635
  • Page: 360
  • Format: Hardcover
  • It s the ultimate business question of our time How do real companies make money when customers expect and often get products for free There are millions of potential customers in the world Most of them won t pay anything for your product But some will pay almost anything Thechallenge is to find the latter without wasting time and money on the former.In The Curve, NiIt s the ultimate business question of our time How do real companies make money when customers expect and often get products for free There are millions of potential customers in the world Most of them won t pay anything for your product But some will pay almost anything Thechallenge is to find the latter without wasting time and money on the former.In The Curve, Nicholas Lovell weaves together stories from disparate industries to show how smart companies are solving this puzzle From video games to pop music to model trains, the Internet helps businesses forge direct relationships with a vast global audience by building communities and offering bespoke products and experiences.In many cases, businesses can win by sharing their product or a version of their product for free, allowing it to spread as widely as possible Eventually, a huge number of freeloaders spread the word to the superfans who value that product the most And a small number of superfans will love a product so much that they will spend substantial sums of money on it given the chance These high value customers are enough to fuel a profitable business For example Nine Inch Nails front man Trent Reznor gave away his album for free to find the 2,500 hardcore fans who wanted the 300 limited ultradeluxe edition.Bigpoint, an independent game developer, released three adventure games to 130 million users and made 80 percent of its 80 million revenue from just 23,000 users, who spent money to upgrade their game playing arsenal.King Arthur Flour shares useful recipes and tips on its Web site, enchanting a cult of devoted bakers, many of whom happily travel to its Vermont headquarters for expensive specialty baking classes.This approach doesn t apply just to digital products any With the advent of 3D printing, customization of physical goods is easier and cheap, and companies can truly tailor their offerings to their customers A doll company can personalize everything from hair color to eye shape, and automakersand technicians can create laser scanned replacement parts for classic cars Although the potential for piracy will spread to industries that believed they were immune to such disruption, businesses have an opportunity to make money in this new paradigm by offering variety, complexity, and flexibility at little to no extra cost.What Lovell calls the Curve is a ranking of your company s potential customers from those most likely to least likely to pay for your product or service It charts their interest against the amount they are prepared to spend be it nothing at all or thousands of dollars The curve itself separates your revenueopportunity willing big spenders, your superfans on the left from your marketing opportunity freeloaders, whose only acceptable price point is 0 on the right The area under the curve is the total amount of money you might be able to get from your customers or fans.Lovell offers a strategy to draw people into your orbit than was possible when physical costs limited your ability to expand The Curve heralds a new era of creativity and business freedom.

    One thought on “The Curve: How Smart Companies Find High-Value Customers”

    1. I've read a lot of business books in the past two years, some for pleasure and some for work. And I'm pretty bored with the build-your-business-in-these-463-useful-steps genre or the I-did-it-you-can-too type full of "helpful" summary boxes at the end of each chapter.The Curve doesn't do these things, which automatically makes it a star above the rest. And then it takes a very simple idea and expands clearly on it without much wandering. In the digital age, free is the baseline. Within your thou [...]

    2. I've worked in publishing for years and we've long been facing in the digital threat/opportunity so it was an absolute joy to read a book about how exciting the future can be. Full of great stories from Trent Reznor to why 3D printing will mean the end of the mass market. Can't recommend this more if you work in media of any form and want to think about how we could do things differently and face the brave new world feeling inspired.

    3. I started reading this book after VidCon this year and think that it is a pretty good treatment of what's happening online. It will be interesting to see if other futurists pick up what Lovell is laying down here.

    4. Actually I tend to know know Nicholas briefly from some gaming events. I already knew that he is a good and entertaining speaker but after finishing the book I can also say that he is also an excellent writer.So - finished the book in a few days as it was fun and also very insightful. If you are interested in business models and how to shape your business for the future so it may benefit from the disruptive digital changes we are enocuntering in these times - go and read it! You won´t be disapp [...]

    5. Another one of the plethora of books about how to survive the changes to buying behaviour wrought by the digitalisation of the economy. Thankfully, it's not written in the style of my opening sentence :-)Executive summary: stuff's becoming free. You need to get happy with the fact that most people are going to use your service for free, or download your stuff free. You have to figure out ways of getting your fans to buy stuff at higher prices by offering them something that really appeals to the [...]

    6. Nicholas Lovell (the writer of Gamesbrief blog, among other things) is a kind of a pioneer in understanding the economics of digital revolution and free (-to-play). The curve condenses many central ideas of making money in the world of free digital content and distribution into a nice package. As a book it is just OK, but the central idea behind the Curve is a must-to-know for all people working in the bussiness of free.

    7. I don't often read let alone recommend "work" books -- business books, books about the Internet, etc. But this is a good one; the essential points could probably be boiled down to 3-4 long blog posts, but it's a must-read if you work in digital media in some way.

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