Li Jiaoshou: Can’t Afford Traffic, But You Can Afford Innovation
Original by Li Jing (Li Jiaoshou)
September 27, 2016
Series II on Value Creation: “How to Create Value”
Why do some people consistently generate innovative ideas, while others remain stuck in repetitive tasks like buying traffic, boosting orders, or increasing ads? This article explores four methods for “value creation” innovation.
The Decline of Traditional Marketing
Most companies complain that marketing has become harder: attention is scarce, traffic is expensive, and influencers are less effective. The root cause? Most focus on “value extraction” (competing for existing resources) rather than “value creation” (redefining how resources are used).
For example, hosting a marketing forum through “value extraction” means chasing big-name speakers and prime venues. “Value creation,” however, involves reimagining the forum’s purpose—like designing a mission that resonates deeply with attendees.
4 Methods to Unlock Value Creation
1. Break Fixed Categories
Industries often rely on rigid classifications (e.g., “fast food vs. sit-down restaurants”). Innovation happens when these categories merge:
– Fast food “sit-down-ization”: Chains like Huang Men Ji Rice reinvent fast food as a full meal experience.
– Sit-down “fast-food-ization”: Brands like Grandma’s Home streamline dining with smaller portions and quicker service.
Apply this to your industry: Identify existing categories (e.g., B2B vs. B2C, home vs. office) and explore hybrid models. For example:
– B2B2C: Companies like Alibaba Cloud market directly to consumers to influence B2B decisions.
– B2C2B: O2O services partner with corporations to offer employee benefits.
2. Elevate Your Perspective
Most people think in low-construal terms (e.g., “Which neighborhood should we target?”). Innovators use high-construal thinking to ask:
– Why do users need this? Barbie succeeded by reimagining dolls as aspirational figures for girls.
– What role should influencers play? Amap integrated Lin Chi-ling’s voice into navigation, adding functional value beyond endorsements.
3. Think Across the Entire Journey
Your product is just one step in the user’s journey. For example:
– Fitness apps like Keep succeed by addressing motivation, planning, guidance, and feedback—not just workout videos.
– Lesson: Solve bottlenecks across the entire user journey, not isolated steps.
4. Challenge Industry Assumptions
Many “golden rules” exist only because their original conditions persist. For example:
– Gaming: Overwatch disrupted the “free-to-play + microtransactions” model by charging upfront for fair gameplay.
– Key: Question outdated norms (e.g., “Software must be free” or “E-commerce must prioritize speed”).
Conclusion
Value creation isn’t about gathering more data—it’s about rewiring your thinking. Break fixed categories, elevate your perspective, address full user journeys, and challenge assumptions.
Previous article: Why Has Marketing Become Harder?
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