The Tech Strategy Podcast Why Data Network Effects and Data Scale Aren’t Moats. Plus, More on Bundling. (260)
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Sep 7, 2025 Discover why bundling is a game-changer in the digital marketplace, creating benefits for both sellers and buyers. Explore the complexities of product bundling and how factors like customer willingness to pay play a vital role. Unpack the myth of data moats and network effects, revealing that success is often about learning and adaptation. Dive into the nuanced relationship between data quality and decision-making, and hear intriguing case studies that reinforce these concepts. Plus, get a glimpse into personal travel experiences tied to business ventures!
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Use Bundles To Capture More Spend
- Bundle related products to capture more of each customer's total willingness to pay.
- Price the bundle slightly below combined willingness to pay so both seller and buyer win.
Digital Goods Amplify Bundling Power
- Digital goods make bundling extremely powerful because marginal cost is often near zero.
- That enables endless bundles, cross-sells, and feature variants without production costs.
Design Bundles For Multiple Business Wins
- Use bundling to increase revenue, segment customers, reduce costs, and raise switching costs.
- Design bundles to improve convenience and capture more willingness to pay.
