In many cases, a tailored experience outweighs cost the “cheapest”; this trend holds true for both high-touch 6 considerations. Analysis of Google search data shows products, such as make-up, as well as utilitarian products that consumers are increasingly seeking the “best” versus such as paper towels. Figure 1: Consumer Search Analysis 100 Search for 75 “Best Make-up” 50 Search for 25 “Cheap Make-up” Average 1 Feb 2007 1 Oct 2010 1Jun 2014 100 Search for 75 “Best Paper Towels” 50 Search for 25 “Cheap Paper Towels” Average 1 Feb 2007 1 Oct 2010 1Jun 2014 This means that companies are no longer just selling products To ensure continued success, firms will need to craft an to consumers, but are instead anticipating and meeting operating model that recognizes these significant changes in consumers’ needs as part of deeper, more enduring, and in profit pools —the sources and distribution of profit within the many cases increasingly interactive, relationships. This implies industry— across consumer-centric industries, and design a shift in focus from maximizing market share and revenue to both organizations and ecosystems to unlock opportunities. creating material consumer value. Profit pools of the future will focus on the consumer. Companies will need to seek revenue opportunities that Consider, for example, that a food company may move from increase consumer value and balance cost savings with simply selling food items to participating in a healthy-eating consumer outcomes. ecosystem. This network might provide a range of offerings, including healthy packaged foods, personalized nutrition subscriptions, and physical and emotional coaching. In this scenario, rather than maximizing individual profits, participants will strive to maximize the value of the entire system, while realizing sustainable value for each stakeholder – consumers, partners and self. Operating Models for the Future of Consumption 7