How to Implement an On-demand Business Model
The current decade has seen the establishment of dozens of successful on-demand startups. Each of these businesses provides the case studies for aspirants to launch their own startups. Many investors failed to form a sustainable startup. Careful implementation of on-demand business model was the key for the successful ones.
ODTap carries the privilege of helping multiple entrepreneurs in transforming their on-demand ideas into successful revenue generating engines.
Following is a briefing on creating a prosperous on-demand startup.
Outlining the Scope
Scope definition is the foremost component may it be an on-demand business or any other revenue stream. An investment without scaling the boundaries will significantly increase the cost and time. Eventually, the initiative will end-up in termination before it could properly launch.
To identify the specific case, you need to pick one of the vast number of on-demand industries. The latter part of this text takes you to a quick-fire journey of various industries.
Once you choose an industry, the next step is the identification of an appropriate niche – the customer-base. This identification is crucial because your marketing and software acquisition efforts will base on the kind of customers.
It is also advisable to explore markets and detect consumer behavior. There are approaches to user modeling which precisely forecast trends and highlight the needs of customers.
Scope definition ensures that your business has a specific direction.
Acquiring Relevant On-demand App
Smartphone revolution was the foundation stone of on-demand economy. Although online businesses are around since the commercialization of web, yet the introduction of on-demand businesses owes to mobile app development.
The web-based businesses never attained the on-demand status since they lacked the smooth user experience provided by mobile apps. Website design is generic and aimed at finding a good fit for all mobile and desktop-based platforms.
In contrast, the structure of mobile apps is specific to operating system of the device. Thus, mobile app is essential for realizing any on-demand business model.
Apart from user-experience, performance of app is another significant factor for playing part in success of an on-demand service. An app that frequently crashes or takes excessive time in performing various tasks will fail to retain customers.
One KPI for a successful app is its level of data security. The challenges of data integrity are growing every day. Consequently, the regulatory authorities are placing stringent rules with heavy penalties for compromise on data. Thus, the app needs to have multiple encryption levels.
The features of an app play the core role in enhancing the user-experience. Regardless of the attractiveness of design, the primary requirement of user is to acquire services that the app promises. The user should be able to schedule a service with only few taps on the device. Moreover, the entire booking process should take at most 15-20 seconds excluding the time consumed by user.
Some of the most notable features of any on-demand app include user accounts for employees and customers, facility for tracking agent in real-time, and route planning. Moreover, the app should also provide multiple payment methods and ability to share in-app feedback.
Up to this point, you will have a purpose-built app. Besides, you will have identified the people who are going to use the app and acquire your services.
The next huge challenge involves the promotion of business to reach maximum number of audience in the operational region.
You can employ various channels depending on the budget to ensure successful marketing. Fortunately, the most effective channel – social media marketing – is the least expensive one. Paid advertising on social media are highly productive because most on-demand consumers are using one or more SM networks.
It is wise enough to start marketing before launching the app. This way, you will create hype among users, pushing them to try the services as soon as they are available. Apart from digitally-driven social networks, print and electronic media are also effective channels.
The app should be visible over Google and other search engines. A customer should find your app on top when searching for on-demand services over the web.
Exploring Various Sectors
On-demand approach is penetrating in every sector. Some industries have already attained maturity after acquiring this relatively new model while others are in transformation phase. An estimate indicates that over 40 industries have on-demand businesses of varying levels.
Following are some of the on-demand models which are yielding the most ROI in shortest time.
Food on-demand business model is one of the most rapidly spreading businesses with an incredible growth rate of 20% at global scale. Studies forecast that sector will attain a market value of $24 billion in the US by 2023.
Most of the regions throughout the world have access to one or more on-demand food services. Grubhub, Doordash, Foodpanda, and UberEats are some of the notable examples.
Successful grocery delivery apps are fewer in number but carry as high potential as food sector. Instacart is one of the pioneers with incredible revenue of $2 billion. The lack of an effective competitor is allowing the startup to expand into more cities quicker than most businesses.
Doctor on-demand business model is also making rounds with the establishment of thriving startups. The initial reaction from consumers at the start of this decade was not the best one. Consumers took some time to put their faith in it. However, the industry is growing by leaps and bounds now.
On-demand delivery business model is revolutionizing the delivery and logistics industry by tackling last-mile and same-hour delivery challenges.
And… What Not?
Besides these industries, on-demand economy is making its mark in all dozens of other sectors including transport, real estate, healthcare, and laundry. Traditional taxi industry is on the verge of extinction after Uber-like businesses.
Home services – for instance, cleaning, plumbing, and electric works are also few taps away in areas where services are available.
The space for this text is intensely insufficient to share the extent of on-demand industry. Contact us today to realize your idea into a massive phenomenon.