Written by Paid Engine of Growth
Many customers I meet are growing there business through the paid engine of growth (Lean Startup) in my view this is a risk and potentially unsustainable model. Google’s genius, more than anything else is its bidding model for Google Ad words. Its drive up the cost of AdWords for advertisers in a way that makes prices increase to a greater extent invisible to its customers, yet we see more and more money pouring into google. With Expedia and Booking spending over a $1B each per quarter (Skift Reseach numbers) before you take into account their metasearch business it’s very lucrative for Google. Then factor in the Airlines, Hotels, Car rental companies and we are talking about a lot of AdWords. If your smaller independent travel resellers how can you hope to compete?
Sticky engine of growth
In short, I think business needs to focus more on their sticky engine of growth (Lean Startup) where customer loyalty, lifetime value and superior customer experience are real drivers of value for customers. Don’t merely pay to get their attention, invest in your proposition – make it better, make it easier, make it simpler, make it so your customers would never dream of going elsewhere — investment in your sticky engine of growth, is an investment in your brand, in lifetime value and it should payback multiplies times over.