DeepSummary
The episode discusses how weight loss drugs like Eli Lilly's Zepbound might impact other industries, particularly the sleep apnea market and companies like ResMed. It explores the potential benefits of these drugs in reducing sleep apnea severity and the implications for ResMed's business.
The hosts also analyze UPS's sale of its Coyote Logistics unit to RXO, with RXO's shares surging on the news. They examine the strategic rationale and potential synergies for both companies in this deal.
Additionally, the episode covers Target's partnership with Shopify, allowing Shopify merchants to join Target's online marketplace. The hosts view this as a win-win for both companies, expanding Target's product offerings and providing more selling opportunities for Shopify sellers.
Key Episodes Takeaways
- Weight loss drugs like Eli Lilly's Zepbound could potentially impact other industries, particularly the sleep apnea market and companies like ResMed.
- UPS's sale of Coyote Logistics to RXO is seen as a strategic move for RXO to become a major player in the truck brokerage market, with anticipated cost synergies.
- Target's partnership with Shopify, allowing Shopify merchants to join Target's online marketplace, is viewed as a win-win for both companies.
- Fostering lifetime customer relationships through emotional connections, problem-solving solutions, or habit formation can provide significant economic benefits for businesses.
- Metrics like dollar-based net retention rate and large customer count are indicators of companies successfully cultivating lifetime customer relationships.
- Businesses with lifetime customer relationships can generate substantial profits and cash flow over time, even if initially unprofitable.
- Transitioning customers from one product or service to another, even if potentially beneficial, can be challenging due to established habits and emotional connections.
- Free or freemium offerings can still provide value to businesses by monetizing through advertising or setting the stage for potential paid upgrades and lifetime customer relationships.
Top Episodes Quotes
- “Where it weighs for Resmed is pretty heavily, potentially, and it's early to say, but down 10% off this news, good news.“ by Bill Barker
- “I think that it is potentially more than a little good for Target, and the market's treating it as a little good. 2% move for Target, which is a big company, 2% is meaningful.“ by Bill Barker
- “Once you acquire a customer and if you're trying to get lifetime customers, you are deliberately trying to forge some kind of relationship that can be an emotional connection to the brand, that can be something that, like an enterprise technology where we call solution sale, where you have a problem and I've come to you with a solution.“ by Tim Beyers
- “And once the relationship exists, Ricky, then the marginal economic benefit of repeated sales is just higher. So maybe it costs me a little more to acquire you as a customer because the expectation is this is going to be a long term relationship and im willing to invest in that.“ by Tim Beyers
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Episode Information
Motley Fool Money
The Motley Fool
6/24/24
ResMed has had the market on sleep apnea cornered for a while, but new weight-loss drugs might be creeping in. We look at what could change based on recent studies and some other businesses that have established lifelong customers.
(00:21) Bill Barker and Dylan Lewis discuss:
- How weight-loss drugs like Eli Lilly’s Zepbound might be coming for ResMed and the sleep apnea market.
- RXO take a bigger piece of the brokered transportation market, scooping up Coyote Logistics from UPS.
- Target and Shopify linking up for a win-win partnership.
(13:02) Tim Beyers and Ricky Mulvey discuss the value of lifetime-customer relationships, why they’re huge for the likes of Apple, and Costco, and one lesser-known name that may have one too.
Companies discussed: LLY, NVO, RMD, SPOT, AAPL, SNOW
Host: Dylan Lewis
Guests: Tim Beyers, Tim Beyers, Ricky Mulvey
Producer: Ricky Mulvey
Engineers: Dan Boyd
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