Summary: Online market is gradually becoming the point of creating the largest customer base in the history of marketing. But budding corporations need to remember a few points to kick-start their business.
FREMONT, CA: Data-run business models habitually depend on building portals that bring suppliers and users together in equally beneficial ways. However, attracting customers for the very first time on a platform that has little to none to offer can be a gruesome experience for many companies. Building a trade off the back of a platform strategy can be extremely efficient and very lucrative.
1. Developing One Side of the Market:
Rather than attempting to draw buyers and suppliers from the start simultaneously, it is a better option to target one side first. Presentation of something that incorporates one group and keeps them satisfied can be a foundation for accumulating the other side later on. This strategy requires investment sufficient enough to sustain the organization until the market can be fully formed.
2. Seeding with Free Data:
The web is composed of data cluster freely available for organizations to collect and exploit. While using freely available data has advantages with respect to access and costs, the shortcoming is that everybody else can also leverage the same data. Once a significant mass of users starts utilizing the service, it is vital for the platform owner to gather customer data and construct a protective data moat with that.
3. Markets with Overlapping Buyers and Suppliers:
Another seeding approach is to locate a market where the two sides share a common ground that can supply the foundation for building momentum in building the market. This overlap will be sufficient enough to slowly develop the marketplace to a phase where it becomes striking to customers even outside the domain.
4. Focusing on Exclusivity:
Instead of trying to reach out to a broad customer market, it is sensible by beginning with a level of exclusivity. This helps with the methodological issues of weighing a business to ensure the platform is steady. As luxury brands have practiced for long, focusing on exceptionality either via higher pricing or limited distribution.