Consumer Services
The Choice Game helps the providers of these services create opportunities from highly subjective value propositions and a marginal cost base that is either labor-intensive or low. They currently face several trends and forces that will reshape how they share value with customers.
- Model experimentation: Pricing models such as software-as-a-service, freemiums, and pay-as-you-go all established themselves in this sector.
- Automation: Accelerated by GenAI, the marginal cost for many consumer services may fall to near zero. This opens up greater latitude for experimentation.
- Personalization: Companies will try to strike the right balance across differentiated offers and differentiated pricing as personalization becomes both feasible and desirable at scale.
Some providers will make the choice to play the Dynamic Game or the Value Game to take advantage of these trends.
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