The De-Averaging Loophole: The best place to look for great ideas

The formula for figuring out averages is pounded into our heads from the time we are small children. Unfortunately, breakthrough ideas and incredible opportunities can rarely be found anywhere near average.

One of the best methods for spotting unmet needs and great opportunities is to “de-average”.

Look at the Outliers

In statistics an outlier is an observation that is distant from the rest of the data. Instead of looking at the average age of your customers, how about looking at your oldest and youngest customers? Could there be an opportunity to meet their needs in a better way?

The Coyne Brothers in their fantastic book Brainsteering present the example of a baby food company which found that its sales in Florida were way out of proportion to the number of babies in Florida. Do babies in Florida eat more than babies in other states? Nope. The extra food was being purchased by elderly people living in condos and retirement centers in Florida who wanted smaller portions and food that was easy to eat. This realization lead to the establishment of a whole new product line.

Another Example

Web designers struggle with lower budget clients because it is difficult to deliver a good product while maintaining profitability. The smart crew at Onepager noticed that clients with smaller budgets still deserved a good product but were being ignored by most of the industry. They created a drop-dead-simple web application that allows anyone to create a compelling website.

Onepager has created a great business with lots of potential by meeting the needs of an outlying, under-served portion of their market.

Look to the fringe for your next breakthrough idea.