Customer’s new mindset
Digital services, such as Spotify, Uber or Netflix, show how it is done: flexible and on-demand services which are perfectly tailored to the wishes of today’s consumer. They don’t sell products, but continuous services. To gain long-lasting customer relationships these services are based on constant improvement and flexible-pricing models.
All these business models are based on ongoing digitization and a world characterized by volatility, uncertainty, complexity and ambiguity (VUCA). It’s predicted that these trends will increase in the future.
The transformation from product to service provider
Many companies have already transformed their businesses and now offer additional services to their customers. While this trend is seen in many business-to-consumer (B2C) industries, one of the strongest growth areas is business-to-business (B2B) models. More and more products are also available as a service. For example: aircraft engines are paid by mileage, drilling equipment by the number of holes drilled or cars by the minutes used. The provider takes the risk of offering a functional service, but gets the advantage of a constant customer relationship and usage data.
Due to this transformation, providers are not only capable of improving their services with direct customer feedback, but also to win customers loyalty and generate recurring revenues.
The future is individual business models per customer
Purchasing behavior is as individual as people’s ways of living. For merchants, this means a new stage of complexity since there is still a large number of customers looking for traditional ways of buying and owning goods.
At Nitrobox, we believe in mass customized business models – offering the right product to each potential client at the right time. Whether the customer may want to use a product, own it for a certain amount of time or switch between models – merchants need to be able to deal with those challenges.
Updated about 1 year ago