The customer experience online has to be streamlined, intuitive, and ready to support any customer issues that may arise. For consumers, buying online has become second (or maybe first) nature but the websites, pricing strategies, and brand messages are very different among the biggest players. Customer experience and brand strategy all tie back to the business model and business plan.
While there are many different types of business models, some companies fit more of a hybrid and eCommerce has blurred the lines even more. Some of the more well-known business models are retailer, distributor, franchise, subscription, and manufacturer. Lesser known business models include one-for-one, crowdsourcing, and the razor blade model.
Netflix, for example, is known for it’s streaming services but it also offers a to-your-door DVD delivery service. They’ve even ventured into producing their own consumable content in film and TV. Their subscription fee, along with food delivery services like HelloFresh, is about convenience—whether it’s saving you time, effort, or both. What kind of business model is your business built on?
This infographic from Fundera breaks down 12 common business models using coffee metaphors to illustrate how each one operates. So grab a cup of joe from your local coffee shop (a franchise possibly?) or make one at home (razor blade model if you have a Keurig) and dive in. As a digital marketer, understanding how your business model functions can help you understand how customers interact with your brand and even competitors.
If you plan to start your own business, look to some of these real-life examples for inspiration. After nailing down your value proposition, target market, and competitive advantage you’ll be set to pick a business model and fund your business. Business models hold the strategy behind how you’ll run your business and how you’ll make money, so be sure the model you choose is a good fit for your brand and consumer.
Thanks to our friends at www.fundera.com