Bringing real value to consumers always wins

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Bringing real value to consumers always wins

Published on Mar 16, 2020 by Dominik Kaukinen


I’m going to take a moment to reflect on some of the most successful dotcom era companies, and what their value propositions were. I find it’s easy to get lost in the flash pizazz of modern technology companies.

My hot take is this: a good UX doesn’t matter if you don’t offer real measurable value to your customers. I’ll take it a step further, brace yourself; a good UX should be a distant second priority to a real value proposition.


Following the rise and fall of Napster along with other music downloading services such as: limewire, kazaa, and torrents, Apple sought to re-invent music distribution through iTunes. It was clear consumers would not settle for the antiquated process of purchasing $15 CDs from a brick and mortar store for an intangible good anymore. Fearing a larger loss to digital distribution services, music executives caved to the inevitable digital push. Steve Jobs convinced them to sell individual songs on iTunes for $0.99 a pop. Consumers switched en masse to the more convenient cheaper solution.


PayPal had a unique value proposition to consumers. They allowed consumers the ability to make purchases from a digital wallet, removing the credit card barrier. They could do so from their home, without needing to go to a physical bank or participate in a convoluted setup process. Most importantly, they also had the lowest possible outgoing transaction fees. People paid less to move their money, and it was easier for them to do so. The result was that consumers pressured major sellers to sign-up for and accept PayPal.


Amazon took a flywheel approach in their early days. Amazon kept costs as low as possible to attract consumers. The mass of consumers would in turn attract sellers. Having more sellers meant more selection and competitive pricing, which brought in even more consumers. So, summary, lowest prices, highest available product selection.


Netflix was a mail-order DVD rental business before it was a streaming service. Netflix saw the future, and decided to cannibalize its own DVD rental service revenue to launch a lower margin VOD streaming service in 2007. Now, in 2020, Netflix is a media juggernaught, and kids under 20 probably haven’t even heard of Blockbuster. Consumers picked the convenient cost effective solution, and Netflix had enough foresight to realize this and offer a zero hassle, low-cost entertainment platform with no advertisements.


Insurance is an intangible good, consumers want convenience. In 2020 consumers will face the difficult choice: do they choose to continue to pay 10-30% more for their insurance, or do they go with the zero commission option? We placed a big bet on the answer to that question. Like our predecessors, we are customer-first and offering incredible value to both our consumer and insurer customers. Our consumers have the lowest possible prices for insurance. Our insurers have access to an enthusiastic customer base while enjoying severely slashed policy admin expenses. Win-win.

Read more about Awywi.

**Awywi is not a technology vendor, we use proprietary technology to sell insurance products through licensed insurance agents.