Platform Thinking in Business Development: Why Companies Like AirBNB are so Successful

Popular booking application, AirBNB, allows consumers to book reservations and events that are out of town, by providing important information about these venues, which can help its’ users make decisions.  Users can add information in the form of reviews, ratings and photos. AirBNB uses the platform business model.

The platform business model is a scalable business model. It takes advantage of technology to connect people and organizations in order to exchange services and things of value (Parker, 2). Less viable today, is the pipe business model, where stuff is consumed in a linear fashion, like water flowing through a pipe (“Why Business Models Fail..”).

Companies that use the platform business model today are Amazon, YouTube, eBay, Wikipedia, iPhone, Upwork, Twitter, KAYAK, Instagram, AirBNB and Pinterest (Parker, 3).

AirBNB is a company that uses the platform business model approach, and connects to various venues like rental homes out of of the country, and popular reservations, experiences in NY and featured destinations. The platform of AirBNB is a place where consumers can easily access the service that AirBNB has to offer based on the network of connections that the business model enables (Parker, 9).

The “platform” or application of AirBNB has many features of a top-notch platform. The site has a solid, clean user interface in bright, modern colors, simple layout, good color scheme, and an attractive logo. It is simple yet elegant, which gives off vibes of “exploration and connection to external sources.”

AirBNB is a great example of a successful business that started from scratch, but became successful by understanding the importance of platform marketing in order to build customer retention (Parker, 9).
AirBNB

AirBNB

With the platform approach there is a greater user interaction and opportunity for business development. Platform marketing is like the Internet where information congregates rapidly for consumer interaction on social media and forums, Twitter and Facebook. An application that uses platform thinking is YouTube, which has a sleek and simple interface that is poised to host new content, create user engagement, and increase customer retention, by providing opportunities for the music hosted on it’s servers to be shared amongst users, and on Facebook (“Why Business Models Fail..”).

Unlike e-commerce applications online, which use pipe thinking, platform thinking optimizes conversions, analyzing consumer data regularly with modern data-analytics tools (“Why Business Models Fail..”).

These services can grow business as content curators are able to gauge what is popular and interests their consumers, unlike the pipe model that is limited, and only focuses on the products it is selling. Businesses who are interested in long-term growth, and customer engagement should apply platform thinking instead of pipe thinking (“Why Business Models Fail..”).

Meet other digital marketing professionals interested in platform thinking at goElaborate!

 

References

Choudary, Sangeet P. “Why Business Models Fail: Pipes Vs. Platforms.” Wired, https://www.wired.com/insights/2013/10/why-business-models-fail-pipes-us-platforms/. Accessed 10 October 2017.

Parker, Geoffrey G., et al. Platform Revolution: How Networked Markets Are Transforming the Economy And How to Make Them Work For You. W. W. Norton & Company, 2016.

 

 

 

The NEW 4 P’s of Marketing Mix

The NEW 4 P’s of Marketing

 

You might not be aware of the classic 4 P’s of marketing, also known as the marketing mix: price, product, promotion, and place. The Marketing mix; a quick way marketing professionals keep in mind the four major considerations for a brand.

<goElaborate Pinterest Infograph

But the fact is that things change.  The drastic changes with technology, especially via social media and mobile technology, e.g: smart phones, simply cannot be ignored.

The new ‘P’s’ of marketing, as Kimberley Kadlec, Vice-President of Johnson & Johnson’s global marketing group suggested are: Purpose, Presence, Proximity and Partnership.  (http://bit.ly/XuMWT8)

Purpose adds to the value, such as an environmental purpose (Ex: 10% of our revenue goes to WWF), and transparency (Ex: Dolphin-safe fishing).

Proximity and Presence addresses the social and mobile issue.  The brand needs to be accessible everywhere: Google, Facebook, Youtube, and everything else you can think of.

Partnership focuses on collaboration with both businesses and clients to advance the brand.  Be it looking at the feedback of customers or sponsoring events to gain further exposure.

Brands both new and old must consider the new variables in this digital age, and it all begins with the new P’s of marketing.

Tips To Rapidly Raise Funding on Angel List

#Startups: #entrepreneur musts for #funding! Via @dharmesh

Angel List is service that makes it easy for introductions to happen between entrepreneur and investor, kind of like a mini Facebook for investors and entrepreneurs. Although it’s easy to use, some people have made mistakes while using it.

Taken from this article (http://onstartups.com/tabid/3339/bid/87711/6-Tips-To-Rapidly-Raise-Funding-on-Angel-List.aspx)

In this article talks about the top 6 things Rick Perreault (co-founder & CEO of Unbounce, a Vancouver-based company that develops a web based platform)  did that helped  him raise capital with Angel List.

Here are two tips taken from this article about Angel List

Tip #1 Use video to tell your story

In hindsight, probably the most effective thing I did was include a link on our profile and in all my email correspondence to a video of me giving our pitch I had the opportunity to pitch at the last GROW Conference here in Vancouver and lucky for us, they recorded it. I included it on our Angel List profile and almost everyone that contacted me commented that they watched it and especially liked the Q&A. Here is the link to the video: http://www.youtube.com/watch?v=1WcpFqKA7So

You don’t need to spend any money doing this either. Record yourself giving your pitch and providing answers to all the typical questions that you get from outsiders and post it on YouTube. Your passion, conviction and knowledge of the problem you are solving will come across in ways that a deck can never achieve and by presenting your own Q&A, you’ll skip all the typical questions and have a much more constructive meeting when you get on a call with an investor.

Tip #2 Get commitments for endorsements early

You probably have advisors and/or commitments from investors already or at the very least, someone of influence that likes what you are doing. Let them know that you are going to raise investment via Angel List and ask them in advance if they would endorse your company. Once your profile goes live, your first email(s) should be to them asking them to comment & share your profile.

There are a lot of companies posting on Angel List and having people of influence endorse your business will help you stand out and give visitors to your profile page a reason to take a good look at your startup.

Reality Check: If you can’t get at least one person of influence to endorse your business, you are not ready for Angel List.

For more tips on the article link.