Investing in this attractive market
Learn about the data. In evaluating potential investments or acquisition targets, it will be critical to understand how the company is getting the data, the cost of acquiring it and their artificial intelligence (AI) capabilities for using it. Organizations need robust data for AI to derive meaningful insights, but data acquisition methods have different levels of cost and accuracy that can impact a brand’s profitability.
Get more specialized. Targeted use cases are likely to have a more engaged consumer (think brain health or women’s health). This has implications for profitability as a more engaged consumer is likely to have higher “stickiness” and lifetime value, driving profitability.
Insist on efficacy. A feedback loop, such as blood retesting or performance dashboards, supports long-term behavioral change. That in turn can drive customer retention and overall profitability.
The evidence is in — consumer interest in personalized well-being is on the rise, setting the stage for market growth. For investors, a critical first step is to begin identifying potential targets and jump into diligence, using internal or external resources, of key areas such as data strategy, target consumers and profitability.
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