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Long Lasting Benefits of Social Media Marketing for Fashion Industry. Why to Try it?

Social networking is now a substantial part of our day to day lives which is the reason why it is a huge segment of most of the marketers’ strategies. It is astonishing to know that there are 3.484 billion users of social media,  up 9% year-on-year, worldwide reported in 2019. Social media marketing services have unlocked access to new potential buyers for almost all the industries, particularly Fashion Industry. Imagine spending 7 hours in a week to increase the traffic, recognition and sales of your business for no cost at all.

It used to be the story of most of the business some time ago, before Facebook became all about advertisements. Now, the stakeholders have to take out more than 20% of their marketing budget to optimize their social media presence in order to get sales & branding out of it. A lot of fashionistas nowadays are approaching an unexpected number of potentials , maintly through Instagram and Pinterest. If you are the one keeping social media lower on your priority list, here are the amazing benefits that would make you believe what are you missing on.

Significant increase in brand awareness

By setting up your business profile on social media, most importantly Instagram, you will get to interact with a number of people. It is one of the most cost effective methods to keep up with your branding and visibility over various groups and profiles. To start with the process, set up your profile on various platforms such as Facebook, Instagram, Twitter and Pinterest and then start interacting with people. Set up your trust by interacting with prospects so that in future if they need something that you provide, you will get a customer. Get your business partners, employees, sponsors to like your profile, share your posts as much as possible so that you can win over organic following. Each time any of your posts is shared, your brand will be introduced to a new network of people. The more people know about your business, the more customers you will be getting by organic means. By spending only a few hours a week over your account, 91% of the social media marketers experienced a great exposure.

Increase in inbound traffic

Without trying onto social media, you will remain limited to your loyal customers. There must be a specific set of keywords for which your website ranks. The people who are already familiar with your brand would be most likely searching you from the keywords you rank for. Social media marketing connects you with the people who are out of your loyal customers circle. Every social media profile or post is the gateway for customers to your website which significantly opens up new opportunities of getting customers. With social media, you will have a reach to different kinds of potential customers.

Improvement in search engine ranking

Though there is no direct connection of social media optimization success and ranking improvement on search engines but 58% of marketers believe that working efficiently on social media has improved their search engine rankings. If you are able to rank your business on the top results of Google then consider that you have come to the half of the success path. People generally prefer purchasing from first three results if they are searching for some unique offering else might go up to five results. It is very important to remain on search engines as people do not go past page 1 for anything even if you are serving something unique most. If you have a good presence and branding over social media then people would likely search you over Google as well to know more which would significantly increase the website traffic and hence sales. To give your brand a wide recognition and good reach, you need to work upon creating unique and engaging content in the form of blogs, infographics, news and more. You need to let people interact with your posts by commenting, forum discussion or may be sharing. This will introduce you to different kinds of audience. Once you start posting the required content, you will be able to build a social media community of your business which will follow and share your posts.

You will also get a chance to come in notice of influencers who are a great source of sales and recognition these days. For example, Gemma Talbot who is a London based Fashion blogger shares her unique personal style on her website What’s in her Wardrobe. She has a social media following of over 52k followers which has enabled her to work with multiple big brand such as H&M, REVOLVE, ASOS and more. Another one is Alexandra Lapp who talks about fashion looks, trends, advice and outfits with her followers. Her monochromatic kind of choice distinguishes her from the other fashion influencers. There are many more such Influencer who are doing great over social media sphere, promoting good brands and post reviews. The speciality of influencer is that they do not run behind too much of promotional kind of content. They focus on providing value to their followers by sharing important information and reviews with them. If you are able to turn the faces of multiple influencer towards your brand then there is nothing better than that at this time.

More chances of conversion

With a good visibility of your business comes more sales. If you are able to engage the audience with your posts and content, you will gain a good visibility among various areas and hence there would be more chances of conversion. With social media interaction, you can leave a positive impression on your prospects with a humanization factor. It personifies a brand when quality and useful content is being delivered and shared. 51% of the  social media marketing companies believe that if you spend time in building relationships with people, there are positive results in the sales. Imparting a good impression on users would let them think about your products/services when they need any such thing. Social media has comparatively more lead to close rate than any other marketing method. Also, due to a heavy usage of social networking applications nowadays, it has become important for you to capture audience from there. If you showcase an online brand in front of your prospects, it would significantly increase its credibility. Your brand would also be recommended among family and friends by the users. Remaining active on social media and sharing the information about your products/services there would make it easy for people to approach you. Social media platforms make it easy for people to inquire about products and gather useful information to make an informed decision. Social media is not only providing amazing benefits to the buyers but also benefiting the businesses equally. There are a lot of sellers who do not even have an ecommerce website. They just post the product pictures over social media platforms, lets say, Instagram and by commenting or DM, people can approach them to ask rates. This is how social media platforms are even eliminating the need of having an e-commerce websites. You can start your e-shop even on these platforms.

Inculcate customer satisfaction:

Social media platforms humanizes your brand to a great extent. If you will compare your website with your social media presence, you will find that what customer finds more friendly is social media. On social media if the user tries to interact by various means such as commenting or messaging, he/she will get a personalized message rather than an auto-response. You website can throw an auto generated statement which would reduce the chances of conversion as this is an era of personalization. If you are not adopting it then hundreds of your competitors are working on it and would soon stand ahead of you. I will give you an example. Let’s say you like to visit pictures of celebrities to catch fashion elements. What would you prefer? Google, their personal websites or Instagram account! Probably, Instagram account because you feel a personal touch there. You think that you are looking at something that celebrities themselves have posted. So, there is definitely a difference. The customer interaction being carried out on your social media profile is a demonstration of your love and compassion for your customers. Using interpersonal comments, you can address the problems that your customers might be facing. People are always tilted towards the brands that are loyal and solve their problems at a personal level.

Cost effective method:

Social media marketing is a pocket friendly marketing which gives you a good return even on your little investment. Signing up and making a profile on popular social media platforms such as Facebook, Instagram, Pinterest etc is completely free. Like we have already mentioned, these profiles work as eshops for the businesses who are not having their own website to sell products from. Social media also allows you to advertise your products or services. To start with the paid promotion, you need to first start on a small budget to see what you can expect out of your efforts. When you continue spending low amount and see some returns, you can increase your budget and fine tune your strategy. While the budget application, you need to make sure that proper targeting has been done on the basis of demographics, gender, age group and more factors. Nowadays, we see more and more businesses spending equally on Google adwords and Marketing over social media platforms since it does have perks.

Set up brand authority:

Brand loyalty plays an important role in making a product or service authoritative. When the customers see you posting over social media and providing a genuine response to the matters of other customers, you consider that brand credible. Customer interaction is an indication that your brand always longs for customer satisfaction by answering their queries and resolving their issues. Also, satisfied customers love to provide you a thankful review. Some customers do it themselves if you went out of the way to assist them whereas to some customers you have to ask for the review. Customers tend to judge online businesses with the reviews since this is the place where they can read the unbiased things about a particular brand. Apart from writing about your services, nowadays video reviews are also gaining popularity. Once you attain a good number of reviews, you can ask some of your very happy clients to literally speak about you in a short video. People tend to remember the things they watch and listen more than what they read. If your customers are vocal about their experience then not only with the video review they would communicate your quality offline as well with friends and family.

Brand Loyalty improvement:

Brand loyalty is tough to attain these days with a very high competition in almost all the areas. You cannot know when you customer is starts showing interest in some other services and leave you in shock while making a switch. Though, if you are really working hard towards maintaining the trust in their eyes, it becomes hard for them to leave since they cannot hurt their brand by going away from good services. Social media is not just about posting promotional videos and pictures of your products and services, it is majorly about the networking, connecting and communicating with people. With social media platforms, it has become easy for people to communicate with brand and also other people operating for the same domain. You must have seen a number of users communicating with each other in the comment section, even if they are completely unknown to each other. Some studies have shown that millennials are most loyal towards brands and like to communicate with them or about them on social media. Businesses must implement social media strategies in order to gain this large chunk of audience.

Establish leadership in the industry:

Posting a unique, thoughtful and useful content on social media can make you industry expert which means if people want to know about a particular thing trending in your industry, your brand would be the first one they would seek. You will have a great number of following by your prospects and apart from this, your competitors might also follow your posts in order to remain updated of trends. Your other marketing efforts need to be aligned with social media in order to attain a good reach. It might also let you be a great influencer who can influence the buying decisions of the potential audience. Being an influencer has several perks. You will have a huge following who will not only watch your posts but also actually follow you. If you are one of those businesses aspiring for a widespread recognition then social media can fulfil your dreams in much lesser time than you must have imagined. Influencers keep more power in attracting the customers than celebrities since Influencer are all about one particular niche. They do try and use products in themselves and then tell people about it which seems very much authentic. A lot of other businesses would also approach you to feature their products over your account. For the preambular actions, you can consider taking assistance from any leading SMO company.

Gain deep insights to your business:

Social media accounts help you gain a deep insight into the analytics and consequently help you in shaping up your content strategies. Once you gain a huge number of followers, you can take the help of several social  media tools in order to analyze the demographics and other factors about your potential audience. With such insights you will come to know that what is being liked and shared by the audience most. Some tools also give you the ability to measure the conversion and let you know which way is the best way to bring customers your way.

Especially for SMBs, social media marketing is playing a great role since it allows them to understand the behaviour of their target market. Also, small business or even newly set up big businesses need recognition and a good branding to impress their potentials. Almost every business is jumping to social media nowadays in order to touch the people who do not know about them. Also, whether it is a crime news or a newly made machinery, social media keeps power to spread it like nothing else.

It is very clear that social media marketing and advertising have got their own benefits. With the consistent updates in social media strategy and content, you will experience an increased traffic and conversion rates.

Swiggy Business Model | How Does Swiggy Work? How Does Swiggy Earn?

After having a tiring day at work, you do not want to lose more of your energy in wondering what to cook and then actually cook it by spending hours in the kitchen. You just want already cooked food to appear in front of you. Swiggy has made this possible with doorstep service of cooked food from lakhs of various restaurants, cafes or lounges. You wish for it & Swiggy promises to get it on your doorstep. Am I the only one who is wondering how Swiggy got such a big success in such a less time? Let’s have a look at the business model of Swiggy, how does it work and make money.  

Business Model of Swiggy.

The first and foremost thing about Swiggy is that it does not only list out restaurants on its application but also but also organises delivery partners who deliver the food within 30 minutes on-demand. The business model of Swiggy is purely based upon hyperlocal on-demand food delivery business operation. Swiggy makes use of an innovative technology and concept to bridge the gap between restaurants and food lovers. It operates on dual partnership model and hence it is also responsible for benefitting restaurants.

How does Swiggy works?

Swiggy operates through its websites as well as through its mobile application. The application is used by urban foodies to order food online from their nearby restaurants. Along with listing out restaurants, Swiggy also show bug menus of restaurants on its application so that the foodies can choose from a wide variety.

There have been a great success and rising orders seen by local street vendors as well who cook amazing food but were not in the area of recognition since they could not spend much on marketing.

Once the customer adds products in the cart and places order, he/she will be able to track the order. The user can also connect with the delivery boy and instruct him about the address. The address and location are anyway taken at the time of order but if customer wants to get any information related to order, he/she can get it.

Customer Segment: The prime customers of Swiggy are the people who want to order food from the nearby restaurants and eateries. People who wish to get the food delivered on their doorstep are the customers for Swiggy. After its recent announcement, there has been an addition in the customer type. People who want to order items from groceries, electronics, pharmacies, gift shops and flower shops are also the customers of Swiggy.

Value propositions: Two of the main Value propositions of Swiggy are – no minimum order policy and an efficient online payment system. So, the people who order food from Swiggy must be knowing that Swiggy has no restriction in terms of money of the order. You can even order a dish costing below Rs. 100. This is the main reason why it has scaled up to 14 million orders per month. Being a working woman living out of my hometown, it  became very difficult for me many times to manage food but thanks to Swiggy. It takes care of all such people with no minimum order restriction, unlike other apps which might set minimum order to Rs. 300 or more. Due to this restriction, people generally drop the idea of ordering food because the same leads to waste of money and food if there is only one person to eat.

Other than this, Swiggy has a fantastic online payment system. It lets you pay from 8 different payment methods including Paytm, PhonePe, Freecharge, Mobikwik, Credit and Debit Cards, Sodexo Meal, Ticket Restaurants Meal & Zeta Food Card, LazyPay and Cash-On-Delivery.

Another value propositions of the company are its fleet size (45,000 delivery personnel, 2018) and 20,000 active restaurant partners.

Customer Relationships: Swiggy is known to have 24*7 prompt customer service. It interacts with you through website, app and social media as well. It has maintained a very good relationship with the customers so far. We all have seen people getting refunds if the user is not satisfied with the food or service.

Channels: Android & IOS mobile apps, website and social media platforms are the prime channels of operation of Swiggy.

Key Resources: The resources are the restaurants and shops listed on the application. For example, Keventers, Subway and more. Another resources include technology and delivery providers.

Key Activities:

a. Establishing partnerships with restaurants, eateries and retail shops

b. Managing delivery providers (full-time/part-time)

c. Marketing of services and acquiring customers

d. Management of orders

e. Management of technical operations

f. Management of payment process

g. Handling customer concerns

Key partners:

i . Restaurants and retail shops: The prime key partners of Swiggy are the restaurants and shops which are listed on the application. The stores which wish to deliver their food at the doorstep of people are the key partners of Swiggy such as Subway, Keventers and more.

ii. Delivery providers: Delivery suppliers are the people who deliver food. They can be full-time, part-time or freelancers who work to earn some extra money.

Cost structure:

1. It has Payroll expenses for employees handling designing, development, operations and delivery partners. Incentives and benefits are also included which Swiggy offers to restaurants. For instance, providing a commission of 5%.

2. Costs to maintain application and website development

3. Maintenance charges

4. Administrative cost

5. Brand advertising and marketing cost

6. Dispute related Returns, refunds and other expenses

7. Kitchen base-like facility setup

Revenue Stream:

Find it at the below section.

How does Swiggy earn money?

To get you the answer, we had to understand the revenue model of Swiggy. There are a number of ways through which Swiggy earns money. Talking about the revenue generated, according to economic times “The battle for the top spot in the food delivery market, though, cost the firm dearly, with losses rising more than 93% to Rs 397 crore from Rs 205 crore last year, as per financial documents filed with the registrar of companies and accessed by data research platform Tofler.

This implies that Swiggy earned Rs 1.11 for every one rupee it lost in FY18. Swiggy’s losses, however, are far deeper than Zomato’s Rs 106 crore in FY18.” Adding to it, “While growth in operational revenue has been stellar, the firm saw total expenses more than double to Rs 865 crore as compared to Rs 350 crore last year. The rise in expenses has come mainly on the back of the firm’s increased efforts to widen its fleet, which now stands at more than 90,000 delivery executives.”

Right now, there are 6 revenue streams.

A. Delivery charges: It is charged when you order is below minimum order value. Swiggy charges a nominal amount of Rs. 20 to Rs. 40 to the customers. The charges also depend upon the high order demands or unusual weather conditions.

B. Advertising: There are two types of advertisements Swiggy allows. It allows brand to show their banner ads on the website and app for their promotions. On the other hand, it also allows restaurants to show their listing above in return for some investment from their side. Its like sponsored listing that directory websites do. Swiggy charges restaurants some rates to provide them with a priority in the list.

C. Commission: Swiggy takes commission from all the restaurants from which orders are placed. It collects 15% -25% of commission from each order.

D. Swiggy Access: Not all of us know, but Swiggy has come up with a cloud kitchen concept according to which it provides kitchen spaces to restaurants in a particular area where their chain does not operate. According to a source, “Expecting around 25% of revenues in 2 years, Swiggy expands its cloud kitchen model to include 30 restaurants onboard with 36 kitchens to four new cities.”

E. Swiggy Super: Swiggy Super is a membership program offered by Swiggy to its customers according to which there is unlimited free delivery on Rs. 99 above orders. If customers subscribe to this program, they don’t have to pay surge pricing during excessive demands.

F. Affiliate: The company has established partnerships with some of the financial organizations such as Citibank, HSBC, and ICICI Bank. It earns money by selling their credit cards.

Due to its unique features and great customer service, it might soon receive a  competitive advantage over other such models and increase its already increasing customer base. Do not forget to mention in the comment box regarding what are the latest feature of the application you like the most.

5 Ways Ecommerce Becomes More Advanced With The Power of AI

Over a billion people around the globe now choose online medium over physical store for their shopping requirements. With the Ecommerce development services stretching their wings in almost all the industry lines, people find it easy to get everything on their fingertips. On the other hand, businesses are trying hard to appear at the topmost position, always aspiring to have more visibility than their competitors. A lot of strategies are being adopted by the business owners to target audience in effective and creative ways. Being one of the most appreciated technologies, AI is seen doing wonders in the Ecommerce industry. See how.

1. Significant decrease in cart abandonment: There can be n number of reasons why your potential customers are leaving the cart without purchase. 2 top reasons are there. One- high extra cost (55%). Second- mandatory to create an account (34%). Though, if you send them a follow up email regarding their pending purchase then there is an average open rate of 45% which is a great percentage. AI is used heavily by Ecommerce website marketing companies to take advantage of users’ initial interest and eventually bring them back.
With the help of technological advancement, it has also become easy to know why your customer has left the cart in the first place.
Marketers can use a number of AI tools to target audience on the basis of their online behavior.

2. Voice search backed by AI is gaining popularity: It has been found through a study by comScore that 50% of the searches would be performed by voice by 2020. Means, half of the overall searches would be performed by voice through prospects. It clearly indicates the importance of optimizing your online presence for voice. It all started with the immense popularity of device such as Echo, Alexa, Apple which uses Siri. They  are now capable to do everything from playing a track for you to booking a cab. Voice search has made the shopping experience even more advanced as it allows customers to search for products even without having phones or laptops.
It is high time for the companies to allow customers to optimize their website for audible search so that users can get more ease in searching for what they have been looking for. Remember that it is a busy world and if you provide your customers a little more ease then the existing companies then you might rise high in their hearts and priority list.
Some companies are even allowing the users to capture the image of a particular product they like and search it on their marketplace which is possible only with the help of AI.

3. AI allows hyper personalization & targeting specific customers: Marketing automation has taken most of the work off the shoulders of the marketers as it allows them to collect customer data automatically and target them according to the user behaviour. AI tools have made it easy for businesses to create dynamic ads and show them inside their dashboards. Along with this, these ads are also shown on the relevant websites that those customers like to visit. With the help of AI, retargeting has been made possible which works upon the customer’s search history. Relevant ads are shown to the people who have searched for a particular product or service elsewhere.
Apart from ads, certain surveys and polls are also shown the customers who have a particular buying history. Through this means, business collect information and later use this information for  the improvisation of their marketing strategies.

4. AI’s role in carrying out a better SEO: Your web copy should be creative and engaging undoubtedly but it would be useful only if it is reaching to right users. It is very important to make your content reach the right audience else all your efforts might go in vain. SEO has been playing a great role in bringing many of the customers at the doorstep of e-commerce websites. You will be amazed to know that 40% of the ecommerce traffic comes from organic search over Google. SEO based AI tools are providing a great assistance to the Ecommerce SEO companies in letting them know a number of important things for the onpage and offpage work. For example, they tell you about Keyword research, site audit, content analysis and creation, relevant tags, best times and websites to publish content and many more.
AI tools encourage marketers in driving more and more traffic to their website by organizing content the right way and providing a seamless experience to the users.
Nowadays, with the rise in the number of platforms and ways with which you can promote your business, you get very less time focussing on one method. Though, many AI powered tools are there for the rescue which fastens your work such as a help in choosing the right keywords, content, publishing at right place on right time.

5. Role of AI in targeting repeated customers: You will be astonished to know that 61% of  the SMBs say that more than half of their total revenue comes from the repeated customers. It is very natural that if you buy a product from a particular company and never heard back from them, you will feel that your business keeps no value for them and you will be less likely to approach them for your future needs.
Client retention has always been an important aspect for any online or offline business. If you are able to impress your customers with their first purchase then there is a chance they come back to you. But with the rising competition in the industry, they might switch to some other platform. Though, it is easier for you than the other company to win them as they have already used your service. Therefore, it has become important to send timely reminders to your good customers. By the grace of AI tools and various email marketing software, various automated mails can now be sent to the users according to their online behaviour, purchase history, buying frequency, demographics and more factors.  

AI has clearly changed the online world for us. Write to us, your thoughts on the contribution of AI tools towards Ecommerce industry. Did you get a chance to measure its power? If yes, then how did it go?

Oyo Business Model | How Does Oyo Work & Earn| Marketing Strategies of Oyo

The largest branded network of hotels, Oyorooms started off its preambular actions around an aggregator business model in 2013. With its shatterproof trials it has now become an abode to 450,000 rooms globally operating in over 500 cities in India, Malaysia, China, Nepal, the United Arab Emirates, the United Kingdom,  Indonesia, Saudi Arabia, the Philippines & Japan. Visiting the history, Ritesh Agarwal hailing from Orissa started Oravel Stays for listing and booking of hotels. The company used to establish partnership with different hotels, lease some of the rooms and sell them under its own name. It still works similar but there is a slight change in the business model.

They are putting their main focus still on quality. They have made the partners provide services at predetermined standards to maintain the brand image. The business model of Oyo rooms was much like Airbnb but the focus is not only on discoverability but also on standardized quality. The services used to be sold by the name of Oyo rooms and customers did not care who the partner was. It was a combination of aggregator business model and franchise business model earlier but now it is based on purely franchise concept.

Oyo Rooms Business Model

Oyo is basically a network of budget hotels which is completely different from the famous hotel aggregators like Goibibo, Yatra and Makemytrip. These hotel aggregators generally list hotels and other travel related services on their website. In return, they get a commission on bookings as their revenue. They make a deal with the hotels by taking minimum order guarantee per month and hence discounts and offers are provided in comparison to the rates that hotels generally offer to the guests directly.
What about Oyo? It establishes partnership with non standardized hotels and purchases some rooms of the hotel for a particular time duration. Then, it resells those rooms under the branding of Oyo. Since the rooms are to be booked in advance, there is a huge capital required to initially book the rooms.

There are no direct competitors for Oyo so far as it works on a different kind of business model. It partners with zero to two star hotels, give a makeover to the rooms and then bring customers to those hotels through their website and mobile app. Earlier, there was a fantastic marketing strategy Oyo had adopted according to which Oyo properties were listed on other hotel listing website but it got blacklisted then from the sites like Makemytrip, Goibibo, Yatra etc. There used to be a general problem faced by people. Firstly, there were two listings shown of one hotel- One under the name of the hotel itself and other with the name of Oyo. As an enhancement to its strategy, Oyo did not used to show hotel’s names until you book. It was hard to locate the oyo properties at that time as the names were not disclosed.

Why do Hotels allow Oyo to establish its own branding at their property?

There is a mastermind behind the inception! Oyo basically targets zero to two star hotels which are very high in number. They do not generally bother about getting customers. They do zero branding and no marketing for their business.  So, if there is any money that can come to them without moving any muscle, why won’t they love it. Moreover, while sending customers to these hotels, Oyo is not worried about the customer service as well because Oyo is the one which takes care of proper makeover of the unorganized hotels.

In the organized hotels and accommodation, Oyo books a number of rooms in advance by paying upfront after some bulk discount. Then, the rooms are listed on its website and other platforms to let the people make bookings in  luxurious hotels at much nominal cost. The other method of functioning is for the unorganized hotels in which Oyo gives makeover to the rooms and in return it gets as much money as the hotel owner gets for room booking. It is basically for the hotels which have not been recognized yet by the potential customers.

How does Oyo Rooms work?

There are different types of properties listed on Oyo Rooms. If unorganized hotels are there then organized are also their winning the customers. Now, the question is why do organized hotels need Oyo and why there is a big difference in cost when you book directly, in comparison to when you book through Oyo Rooms. It is because Oyo Rooms book the hotel rooms by paying in advance for the complete month. Now, it depends upon the marketing and promotion strategies of Oyo that the particular hotel gets how many customers. Since, the hotels get booking for the entire month, they are free from the stress of sales of at least those rooms.

What is the marketing strategy of Oyo Rooms?

The basic concept Oyo is based on, is blocking the hotel rooms by paying the whole rent in advance, let’s say for a month. If you will have a surface look, you will see a lot of difference in the prices of Oyo and prices of same rooms when you buy directly from the hotels or any other aggregator website. It is not something unusual and this is what most of the ecommerce companies are doing. They take the products in bulk and then sell the product on their sites while earning a decent margin. This is what Oyo is doing with the hotel rooms.

Most of the startups generally focus on getting and building a customer base initially but many of the Indian companies fail to understand the type of market in India. People always run behind what is being offered to them at cheapest cost. The day such companies increase their cost will be the day, they will lose most of their customers.

How it is going with the Indian market?

Indian market is not a pigeon hole but a big banyan tree. Even if you are coming up with an innovative concept, you will find hundreds of people working on the same concept the very next day. It is true that you can bind customers by providing them good service but if are thinking to increase the cost of service, you might lose more than 50% of them. The reason why Indian market is not a pigeon hole is you will get thousands  or lakhs of services working under the same domain. If you disagree to serve, then there are several other good services who are waiting for the customers.

Just not the users who book, even the hotels are not loyal towards Oyo. Oyo books the hotel rooms in advance for the whole month now if a seeker comes to a hotel and ask for rooms. The hotel will tell their normal rates but if the customer says that we can book the room through Oyo then they agree to provide room at that cost only because they have already got a whole month’s money from Oyo. Now, they will focus on selling their other rooms even if they can sell them at a lower cost.

What concept Oyo Rooms is based on?

Oyo Rooms has blended technology with living spaces and aspires to shape up new low budget methods of how travelers searches for good services and make a stay in a completely new space. The OYO team is using technology and talent to fix the socio-economic problem. “(We are focusing on this) so that people and property are in perfect equilibrium. Our long-term vision is to standardize all forms of real estate such as budget hotels, apartments, guesthouses, and resorts,” Agarwal argues.

“Globally, we’ve seen marketplace models pivoting from plain discovery to fully managed and leased services. The future is a brand with distribution and full management capabilities – OYO being a full stack hospitality company is at the forefront of this innovation,” he added.

Talking about the year 2018, it was OYO’s aim to target 180,000 rooms which amounts to capturing 5% share in the hotel market of India. Oyo has re-engineered the hotel and hospitality industry with a variety of products including  OYO Rooms, OYO Flagship, OYO Townhouse. Most importantly, Oyo does not only get traffic from people who are travelling to other places but also due to plenty of other reasons such as staying late at work and then avoid long way commute or even for partying out with friends. People generally do not wish to spend too much if it is a matter of some hours and hence Oyo is getting much popularity day by day.

About the superpowers of Oyo, we must tell you that the CEO claims to have 300 people on ground team including civil engineers, architectural, designers etc who transform the properties within 5-15 days. If we talk about India, there is a great number of 0-2 star hotels. Running such a hotel is generally a side business for the people to just show losses. While, there main business is running side by side. Now, if they are getting money and popularity through Oyo rooms then there is no harm for them.

Since its inception, Oyo has put its major focus on providing a fantastic user experience to the customers so that while they go to a next trip, they prefer Oyo rather than direct booking or booking from some other aggregator website. There is also a plan to offer the holiday packages with guaranteed standardized hotels along with appointing OYO captain for troubleshooting purpose.

He says that “We’ve built technological capabilities to overhaul tedious processes like transformation and asset on-boarding making them swift and agile while providing a structural detailing to the value chain. Our sales workforce uses Orbis which is a business intelligence tool and helps them in understanding demand patterns in the area and basis this intelligence offering the right quote to different partner hotels.”

Why Oyo Rooms are so cheap?

Oyo is majorly focused over creating a huge customer base. It books hotel rooms in advance at an agreed cost. According to our assumption, the hotel owners might agree at a much lower consolidated cost if they are getting booking for a whole month at once. Now, it the Oyo has booked a room for Rs. 1000/month then it would be selling it for Rs. 1100. There is a lesser of profit here but if we see it from the perspective of a huge customer base then it is really great.

Since OYO is still as its growing stage, it offers a lot of discounts to its potential customers who book through their mobile app or website. There is certainly a loss for the company as it also has to spend in renovation, operations etc but since it has managed to raise a very huge funding from Venture Capitalists, we cannot perceive any losses yet.

Revenue of Oyo Rooms

According to the Economic times, Oravel Stays Private Limited which is the parent company of OYO had a net loss amounting to Rs 312 crore in its standalone results for 2017-18. There is a 3% drop from last financial year according to Tofler.

A revenue of Rs 327 crore has been clocked by the company in its standalone results for 2017-18 which is around a 200% jump from last financial year.

According to the reports, “In fiscal 2017-18, OYO’s employee costs went up to Rs 252 crore, up from Rs 197 crore in 2016-17, while total expenses rose 48% to Rs 638 crore in 2017-18 from Rs 430 crore in the previous fiscal.”

The company is expanding even in the international markets. OYO announced that it has already launched in the Philippines as its seventh overseas market besides UK, UAE,  China, Malaysia, Indonesia & Nepal. The company has also planned to execute a digital register mechanism that will be allowing them to share with government the customer data. Though, it might impose a threat on the privacy as Oyo is more about the unmarried people than families.

Also Read: Whatsapp Business Model : How Does Whatsapp Work And Make Money?

##  How does Amazon Work: A Look into Amazon Business Model and Revenue Analysis

## Facebook Business Model: How Does It Work & Earn Money?

## Pinterest Business Model Analysis | How Does Pinterest Work & Make Money?

## Trivago Business Model: How Did Trivago Start & How Does It Work?

Trivago Business Model: How Did Trivago Start & How Does It Work?

Am I the only one who gets the picture of Abhinav Kumar in my mind whenever I think about Trivago? Trivago is all about the amazing things he comes up with in that advertisement. Trivago is basically a meta search engine for hotels which connects the user to a number of travel agencies such as MakeMyTrip, Booking.com, Yatra and more. If you are a traveler then you must be knowing that Trivago makes it very simple for you to compare the cost and book a particular hotel from where it can booked at the cheap most price. How does it work? When you reach the landing page, it takes some inputs from you like destination, check-in check-out dates and type of room. Once filled, it takes you to the listing of hotels where only those OTAs are shown which offer cheapest cost.

According to Trivago, “Net income in the first quarter of 2019 was €7.8 million, up by €29.6 million, compared to a net loss of €21.8 million in the first quarter of 2018.”

Why and How Did Trivago Start?

90% of the people now prefer booking hotels in advance but it was not many years ago, when people used to roam in the city and look for hotels. If it used to be a city of their frequent visit then it was pretty much fine but talking about a new city, there were certainly a number of issues- You did not know about the staff, service, rooms etc. With the inception of websites like Expedia, Booking.com, Orbitz, it became easy for the people to make informed decisions about hotels and even taxi, flights and many things related to their journey. These sites definitely came up as a bliss for the people as they could know every single thing about the hotels before they book or check in. The users went on increasing from hundreds to thousands to millions. Looking at the success,  Malte Slewert, Rolf Schrömgens and Peter Vhotelemeier in the year 2005 started a hotel aggregation site and named it Trivago.
Trivago started in Germany and started growing into different markets. From big online travel agents to small ones, they took all of them under one umbrella. It accomplices over 150 OTAs to serve the ongoing requirements of the visitors. With its consistent efforts and great user experience, it now gets a traffic of 120 million per month.

Trivago Business Model:

Customer segment: Customers are fragmented as Partners and Guests of which partners are categorized as Hotels, Online travel agents and Media whereas Guests include Travelers.

Value Propositions: There are four value propositions on which the model is based.

1. Accessibility: Accessibility has been given to the customers who are free to contribute towards website’s content like adding descriptions, brand profiles and more.

2. Customization: It has been offered to the hotel brands who can customize their profiles for brand individuality.

3. Convenience: The platform offers convenience to the users who can look for a lot of options and can also narrow down results with the application of the hundreds of filters.

4. Brand/status: Trivago calls itself “World’s largest search engine” with taking together 250 booking sites and over 100 hotel chains amounting to nearly 1 million hotels in 190+ countries. It gets 120 unique visits in a month which indicates that it is getting immense popularity among users. It has set itself as brand which is one of the topmost choices for travelers.

Channels: The main channel for users is Trivago’s website whereas it approaches brands through it sales team. The company is involved in a heavy advertising over social media platforms and television.

Customer relationships: Trivago is completely automated in nature and hence there is very limited or no interaction of users with the team. The FAQs over the site answer most of the questions while personal assistance can be received by means of email support.

Key Partners: There are two types of partners. One is Affiliate kind of partnership according to which the company has links with third parties on whose platform it is promoted. Commission is paid as per the clicks. Apart from this, there are quality test partners which is based on an amazing concept. There are some hotel quality testers who book hotel from Trivago, complete their stay and provide feedback to the company by means of a questionnaire. Then, there is an incentive payment released through Paypal.

Key Activities: Trivago bridges the gap between hotel brands and travelers. The platform has website and mobile application.

Key Resources: Trivago’s key resources are its skilled employees and informational database. Along with this, as a startup there is a dependency on financing from investors raising $53.8 million in December 2010.  

Cost Structure: The biggest cost driver is sales/marketing whereas others include transaction expenses, operations and customer support.

Revenue Stream: There are two means with which it earns.

A. Listing revenue: It is the listing fee the company gets from the Online travel agencies.

B. Service revenue: It is the cost paid by hotel brands to get their visibility maintained on the portal.

With Trivago, it has become possible to book an ideal hotel at the cheapest cost. Almost all the hotels can be found on trivago. The account of the hotel needs to be activated on two or more OTAs and the website identifies the hotel. There are a number of advantages of using Trivago for hotels too including an exposure provided to them like nowhere else, rate connect through which you can drive direct bookings by advertising your official website rates on your hotel profile. Trivago offers to you, an exclusive analytics through which you can understand your market and target audience deeply for better conversion. Trivago helps you generate a great exposure along with offering you insights to the success rate so that you can accordingly plan your next action.

Do not forget to mention in the comment box which feature of Trivago did you like the most being traveler or hotel owner.

Also Read: Whatsapp Business Model : How Does Whatsapp Work And Make Money?

##  How does Amazon Work: A Look into Amazon Business Model and Revenue Analysis

## Facebook Business Model: How Does It Work & Earn Money?

## Pinterest Business Model Analysis | How Does Pinterest Work & Make Money?

A Notable Transformation in Travel Industry by Efficient Mobile Apps

Travel industry has gone through a complete overhaul in the last few years. We have hundreds of virtual travel agents available 24*7 on our fingertips now which not only assist us with a number of travel options and packages but also supervise the whole booking so that you do not get even a single line of stress on your head. Mentioning the statistics, we would like to tell you the figures shared by famous travel engine booking.com which states that 80% of the travel seekers today love to self-serve. Gone are the times when traveling across the world was a step into something unknown. Mobile app development companies are undergoing a timely enrichment in their scope of services bringing further innovation in the tour and travel industry.

Technological advancement has let travellers know everything about their journey even before actually experiencing it. The revolution is totally a bliss for the industry due to the easiness it has bestowed a common man with.

Success-bringing features of Tours and Travel apps

1. Intelligent booking system: When we say that these new booking engines are intelligent we mean that these are not just the straightforward robots assisting you for booking. These would let you get hundreds of options, compare prices, get notifications on newly introduced discounts and more such exciting features so that you do not regret on any of your uninformed decisions in future. You can apply multiple filters like type of destination, hotel, flight, cab and narrow down results to only the required ones.

2. In-app accommodation & conveyance booking feature: Most of the travel booking apps now give users options to book flights, hotels, trains, buses and cabs within so that the user does not have to move out of the app. It also helps you organize your journey better as you have everything at one place. The popular sites like Makemytrip and Goibibo have even come up with  homestays which are good for the travelers seeking cheaper options. These options are powered with advanced search features so that you can do quick booking even after having thousands of options in front of you. For example, Hotel search in Makemytrip lets you select country, city, reason of journey and dates based on which you get a big list of hotels with filters of price range, pay/no-pay at checkout time, MMT assured, free breakfast, free wifi, star rating, user rating, parking facility and more.

3. Geolocation feature: Working with the leading Mobile app developers, the giants in the industry are capable of offering some of the very exciting features to the users out of which, one is Geo-location identification and routing. It is a very important and handy feature for those who are travelling to a place they have never before been to. After arriving at the destination, most of the travellers want to understand the routes to restaurants, cafes, hotels, clubs and this is where the geolocation feature comes in handy. It helps people in getting around comfortably without having to worry about whether they will be able to reach their destination or not.  

4. Trip reviews: If you had a very good experience with some hotel, cab driver or may be the bus, you can write it down over the same app from where you booked your itinerary. It would help other users to decide whether to go for a particular service or not. Reversely, if you experienced something bad then do not miss onto writing a bad review as it would not only help other users in making an informed decision but also encourage those bad services for improvement. Travel booking sites sends out notification to the users just after their trip ends to provide reviews so that their users can make informed decisions and get connected with what’s the best.

5. Weather forecasting: Some of the apps use Weather forecasting APIs to let customers know what would be the right time to visit a particular place. It also helps users pack the right clothes for the journey. Some of the apps even go as far as facilitating users to know sea temperature, humidity rate, chances of rain etc.

6. Effortless transactions: Online booking has brought an ease in carrying out transactions for travelers. They offer one stop platform to book, manage and pay all your transactions without indulging in paperwork and taking care of tickets. Travel firms use mobile app to streamline transaction in various forms. Whether it is about sending confirmation, digital receipts or going completely paperless, they do it all. Additionally, travelers now do feel more comfortable understanding that their itineraries, information about accommodation and boarding passes will be passed on electronically for effortless access.

7. Interesting information: Some of the advanced travel apps are indulged in letting the travellers know as much as possible about the place they are travelling to. They let them know about its history, expenses, travel options, food, culture and more, in a way, helping users to be well acquainted before going to a totally unknown place.

8. Clear with the cost: Most of the travel apps are now moving towards being transparent about payment details. Despite of the upselling or cross selling tactics, giants like Makemytrip and Goibibo are very much clear with their pricing keeping no hidden charges. It helps users gather a clear understanding of all the transactions that are falling in or out of his/her budget.

Travel apps are undoubtedly changing the way we plan our itinerary. It is never uninteresting to have a glimpse of where we are travelling to or what travel options we are having in our bucket according to the budget. From suggesting you the best places to booking the best hotel, these apps do everything for you. These apps also come up with timely exciting offers and discounts for travellers, tempting them even more. Additionally, the more you travel, the more you get bonus points which can be converted into wallet money. Thanks to the emerging mobile apps, travel industry is now a big deal with being a multi billion dollar industry.

5 Trends About Content Marketing As We Move Towards Second Half of 2019

Content is the supreme resource regulating the whole online marketing industry with its power to build trust, cultivate customer loyalty and generate leads for businesses. Even the world’s best digital marketing companies say that it is still the king but you need to understand that not all of your old content strategies are going to work now because search engines and other platforms where your content floats are getting smarter with the high pace technology. The real power is now kept by the content that is made up of research, facts, figures and most importantly uniqueness & personalization.

Type any informational search term on Google and analyse the first five blogs. Are they long or short? Do they contain statistics and data? Are they updated timely? And you have already come half way for developing a new productive content strategy!

Lets see the top 5 trends in content marketing analysed by digital marketing experts that are going to matter the most as we move towards the second half of  2019.

!. Say No to unplanned and unresearched content: We will start with an example. Searching for ‘Importance of SEO in 2019’ over Google, the top 4 blogs we have come across are either of 2000+ words or stuffed with a lot of statistics and figures.
Identify the catch here!
The search engines are giving importance and preference to long posts majorly over 2000 words, that too should be well researched, filled with  real data. If you are still publishing unplanned content then it is the high time to reframe your content marketing strategy.
If you content does not offer value then it will fail badly piquing the interest of readers and no audience means no results.
A well done research does not just include the popular statements, facts or some statistics. Research can answer a lot of your questions like-
a. Will the audience respond to the type of content you are writing?
b. What type of content your competitors are using?
c. Does you content have authority?
d. What type of content people are responding to?
e. Upto what extent your target audience engages with your competitor’s posts?

!!. Invest time, efforts and money in content creation process: It seems an obvious fact which 70% of marketers fail to follow. According to research carried out by Content Marketing Institute, 56% of businesses have increased their investment on content creation in last 12 months. Why? Because of the below things which are extremely important for search engines and your target audience.
A. Researching useful and trending topics
B. Finding relevant keywords and looking for data around them like search volume, bid rate, competition and more.
C. Planning the type of content
D. Most importantly, writing the content that is unique and engaging.
E. Editing the content
F. Optimizing the content according to search engines or the respective platforms.
G. Taking out facts and figures associated with the topic
H. Creating graphics around content

Talking about the audience, 71% of the readers/buyers said that they turned off their interest in a particular product/service due to sales pitch kind of content. It means you are losing that much amount of potential audience from becoming your real customers. Investing more and more on content makes sense because if you go to Google trends, you will a rising graph for Content Marketing with a peak in 2019.
You will have to encourage your resources to produce transparency and authenticity by means of content interactivity. You might consider taking assistance from any leading SEO company as they are powered with the resources updating themselves with industry trends timely.  After a good content is in the hands, it should be marketed well so that it can have a desired reach to do wonders for your business.

!!!. Segmentation of audience & content personalization: You will be amazed to know that 91% of the users are most likely to buy if the website shows them personalized offers & recommendations.
Let us suppose you like a particular type of top wear, let’s say Kaftan, now if your shopping app shows you a number of options in kaftan and things matching it then will you prefer them everytime you want to shop? Definitely!
This is how personalization works. It has become a widely accepted content marketing method nowadays with 93% of marketers using it for atleast one of the channels on which they work.
If you are not sure what it is all about then we would like to tell you that personalization means tailoring the content according to the demographics, preferences, search history, purchase history and more information of the user. It lets you target specific audience who might be highly interested in your particular product/service.
Personalization has a lot of benefits than you can think.
1.Offers simplified path to conversion
2. Offers a better customer experience
3. Increased time on your website
4. Generate measurable ROI
5. Encourages upselling

Personalization can be done at any degree. There is a big difference between the person who is visiting your website for the first time and the one who is doing it for the 10th time. The one with the 10th visit is well aware of your products and have given you enough of hints about his/her choice and preferences. They want to travel down the conversion funnel but something is there which is restricting them. You have to work on that pain point with personalized offers or service and see you will win them

!v. Maintain brand’s authenticity & loyalty: According to a survey, 90% of the customers said that authenticity and loyalty of a brand matter to them. While a lot of marketers think they are serving authenticity, they fail to do it actually. 51% of the people think that less than 50% of the brand accomplish this factor.
86% of consumers prefer an honest and authentic brand personality on social networks.
You have to offer the content that matches your products and services and being transparent is the key to reach a good amount of users. When you are real and loyal, your customers just know it and they will most likely recommend you to friends, family and professional groups. Deliver what you say and prove what you write.
It will have the best impact on your brand reviews and hence your branding and search engine ranks.
With such a high number of service providers, customers are facing a crisis of faith. Brands need to re-evaluate their content strategies in order to deliver what is true. It can be difficult for your customer to understand and believe you in this world full of seamless product placements, fake news and media scandals.
Even if you put up a right image of your brand in front of people, it might face criticism over social media due to false competitors’ practices. So, you need to work upon both brand messaging and right delivery so that your customers can enjoy a long term relationship with you.

v. Content marketing does not just mean blogging. So, go beyond it: If in the world of photographs, videos, audios and such advanced elements, you target only those who love to read then you are missing on half of the audience clearly. You need to expand your horizons to social media posts, youtube videos, podcasts and more such things which people love these days. Create social media channels of your brand on multiple platforms so that you can capture the interest of people residing in various places over the internet.
Do you know that 1.56 billion people on average log onto Facebook daily?
Did you know that the total number of users of YouTube is 1,300,000,000 and around 300 hours of videos are being uploaded to YouTube every single minute? With 5 billion videos being watched on Youtube daily, it has become the most visited video streaming application round the globe.
You can now perceive the importance for your brand to be on such platforms. Apart from blogs and articles, your content team also needs to focus on creating engaging video/audio content.
With the evolution of content & whole digital marketing in past months of 2019, we will see many new implementation in the coming months with authentic and personalized content wearing the crown. It has become very important for the brand to target a specific niche in terms of demographics, category, choice and preferences. As you focus on such things, you content marketing strategy will itself start evolving as per the trends. Over the past months, we have noticed most of the brands telling true stories to their customers leading to their success and admiration in the industry.

Instagram Business Model : Working and Revenue Analysis of Instagram

Facebook can be on a lot of mouths but still, it is only Instagram which quenches my all time photo sharing psyche. It is less likely that you are not aware of what it is all about. If it is so, then we would like to tell you Instagram is a photo and video sharing website/mobile application which can be used for free by anyone. It is a Facebook acquired model now. Let’s look at what it used to be before.

History of Instagram

You will be amazed with the fact that this big affair got ready to use in just 2 months. It all started with the efforts of a Stanford University graduate Kevin Systrom. He was working with Nextstop, previously worked with Google and Odeo, now known as Twitter.

On March 2010, Systrom went to a social meet up at Hunch which was a startup situated in Silicon Valley. He met two investors there who viewed his model presentation and afterwards decided to have further meetings regarding this. Meanwhile, Systrom decided to leave his workplace and in just a period of two weeks, he figured out how to bring $500,000 up from Baseline Ventures & Andreessen Horowitz. Instagram got launched on October 6, 2010 and went on a great velocity for becoming the best photo sharing app.

Instagram Business Model

Instagram is based on picture sharing feature which has been seen expanding with a two digit rate every year. Its inception was marked with an aim to become a portable picture sharing application. Now, after some years it got indulged into some productive ways of monetization like sponsored posts, stories and carousel ads.

Just like other social media sites, Instagram too strives at becoming an application for social interaction. It has got a number of amazing features like photographs/ video uploading & sharing, geo tagging, stories and more to serve the purpose.

Key partners: Facebook, Sequoia capital, Baseline, Greylock partner, Benchmark capital and Andreesen horowitz

Key Resources: Network, Platform, Technology, User base and Advertisers

Key Activities: Web development, Maintenance, App development, Maintaining user data

Value Propositions: The value propositions include some of the great features like Instant photo/video sharing, geotags, hashtags, filters, great photos API, an access to a big user base and more.

Channels: Website, Internet, App Stores and Developers APIs

Customer Relationship: Instagram account can be connected to other social media profiles, community and forums, business profiles and celebrity profiles.

Customer segment: Individuals and businesses

Cost structure: Platform development, server, data maintenance, marketing and customer service

Revenue streams: Advertisement majorly, Sponsored posts, stories and carousel ads

How Instagram works?

Instagram is purely a photo/video sharing which gets mainly operated through phone and having limited functionalities over the web. You can share your pictures/videos as feeds or as self vanishing stories. Instagram offers you a wide variety of amazing filters and editing options as well. You can set your profile as public or private based on your preference. People have to send you a follow request and you have to accept it in order to show your posts to them in case it is set on private mode. Instagram lets you like, comment and share the feeds with anyone in your list of friends. My personal favorite is the search section over which I get to see a lot of random pictures and videos relevant to my interests. You can get a variety of search results by performing  a search here like people, tags, places and more.

Nowadays, it is also used by businesses to connect with their prospects. Instagram offers businesses an opportunity to advertise themselves in the form of photographs clubbed with nicely written text and proper usage of hashtags so that a good reach can be achieved. Along with Facebook, Twitter, LinkedIn and Pinterest, we are also seeing a high demand of Instagram marketing.

Depending upon your comfort, you can enable various kinds of push notification. You can decide whether to receive or not receive notification when someone likes or comments on your photo, when user mentions you, when your photo is posted on some other page or when you are tagged in a picture. Apart from this, Instagram also lets you perform other settings such as setting your password, managing search history, setting account private/public, switch to business account and more. There is much more to do with this amazing application. If you have never used it, there is a lot for you.

How Instagram Makes Money?

The major source of income for Instagram is Advertising, just like Facebook. The quality and commitment of Instagram was the reason why Facebook acquired it. In April 2017, Instagram had over 600 million dynamic clients day by day. 80% of the users are not from the USA.

Instagram’s blog says that “bring the capability of multi-page print battles to cell phones – with the additional advantage of taking individuals to a site to take in more.” We will see the promotion on Instagram advancing now with varied options for the advertisers. Right now, Instagram gets money by letting the users advertise their brand page, images and putting sponsored brand stories. Instagram has become one of the five major advertising websites for the business owners.  Over the explore tab, some of the pictures are featured which serves as a great opportunity for business owners to promote their products/services through it.

Apart from being a highly engaging application for users, Instagram server a lot of opportunities for the new brands to connect with their prospects. Once marketed or advertised over Instagram, users can connect with the business owners through messaging or commenting. Stories have become another point of engagement for the users on which Instagram has also started showing the sponsored ones so that while users browse through various posts by people they follow, your story might catch their eyes.

Facebook’s Instagram generated around $8-$9 billion revenue in 2018 but it could definitely soar to $14 billion in the year 2019 according to fresh estimates.

Also Read: Whatsapp Business Model : How Does Whatsapp Work And Make Money?

##  How does Amazon Work: A Look into Amazon Business Model and Revenue Analysis

## Facebook Business Model: How Does It Work & Earn Money?

## Pinterest Business Model Analysis | How Does Pinterest Work & Make Money?

Pinterest Business Model Analysis | How Does Pinterest Work & Make Money?

Ever wondered about the business model of Pinterest, how does Pinterest make money or how does it work exactly? We have done a deep analysis of the model and here we are sharing the associated facts and figures.

What is Pinterest?

Pinterest is a web based pin board or we can say a bulletin board over which people share the images of their projects, goods or services and simultaneously browse the images others have posted and discover new interests.  In simpler words, it is an online replacement for the physical boards that we used to have in our rooms on which we used to affix images of our interest using pins. Pinterest was found in 2010 by Ben Silvermann, Evan Sharp & Paul Sciarra. Silvermann who is the former employee of Google says that Pinterest is catalog of ideas.

It is also a social networking website on which people can interact with each other by commenting, liking, re-saving images or even by private messaging.

On Pinterest, people generally pin images that they find on the web or even on Pinterest itself. They pin it to different boards which are used to categorize the images. Most of the images are clickable and once clicked, they open up in new tab. For instance, Pinterest is considered as a very good platform for cooking or food lovers. Here, people can browse through the amazing collection of food pictures which when clicked takes the user to the recipe.

How to use Pinterest?

Like any other social network, Pinterest lets you sign up for totally free. You just need to create an account by filling out a few details like name, gender, age, language and country. After successful sign up, the platform gives you a number of categories to choose from. You have to choose a minimum of categories based on which it will show you personalized pins as per your interest.

How does Pinterest Work?

It all started with Pinterest being just a graphic sharing app. Now, it’s kind of a big deal by becoming an attraction for millions of users. There are two types of users on Pinterest- Users & Businesses. Users are the people who browse through a variety of pins & pin anything on their board as well whereas Businesses are basically the advertisers who aim to promote their products/services by means of amazing photographs with nicely written sales copy. Along with Facebook, Instagram or Twitter, now businesses are also bearing the consideration of Pinterest in mind. The main aim of the platform is to connect people with the things that they find interesting.

Pinterest experienced an unexpected success in the year 2013 when for the first time it surpassed email as sharing platform and even Facebook. Most of the users of Pinterest, nearly 80% at that time were women which is surprising. We are not sure why but might be because when it started it had most of the women oriented categories like decorating, cooking, gardening, fashion but now it is not so. Now, it has hunting, cigar and such topics which capture men’s interest more than women.

Talking about the figures, according to Pinterest, it receives 200m users on a monthly basis out of which 80% used to be women but recently Pinterest stated that 50% of the new registrations are from men. With the rise of mobile technologies, 80% of the total users access Pinterest using its application.

Pinterest Business Model

With a reported value of $11 billion and 200 million active users, Pinterest has already acquired a special corner in the social media sphere. Launched in the year 2010, the business model of Pinterest was designed to capitalize on the network effect. It had a lesser emphasis on making money. The company launched its very first revenue generation feature in 2013 with ‘promoted pins’.  

Just like any other social network, Pinterest now has Ecommerce, content aspects, cataloging features.

Since pins make most of the foundation of Pinterest, lets know about them along with the business model developed by the company.

Pins: Pins are what Pinterest is all about. Pinterest is a catalog used to save and share pins. Users can pin images they like on the web. It happens using a browser extension or through uploading on Pinterest website or application.

Pinboards: Pinboard is a collection of similar kinds of pins. Users can pin similar stuff under a pinboard which can be both private or public. For example, if there is someone whose major interest is cooking. He/she can pin everything related to cooking under one pinboard. It is said that public pins and pin boards have longer retention value than normal posts on other social media sites.

Purchasable pins: Pinterest has integrated ‘Buy’ button on its pins through which user can directly buy from Pinterest without having to visit merchant’s website. The platform does not earn any kind of money from users or sellers but has introduced this feature just to give more reasons to the users to use Pinterest. The feature has been given to only those systems which are built using BigCommerce, Shopify or Salesforce Commerce Cloud. Though, it has not been revealed yet whether Pinterest earns commission from these partner or not. The company has partnered with two of the payment gateways – Stripe and Braintree that are digital wallets for the store users.

Promoted Pins: As we have already told you, Promoted Pins are the only revenue generation source for the company. Pinterest shows advertisements in the form of pins to the users based on their interests, demographics and other factors. A lot of businesses are making use of Pinterest for their branding and sales goals.

How does Pinterest make money?

Pinterest’s only source for making money is through Promoted pins. These kind of pins are shown on dashboard, searches and other places on Pinterest. When clicked, like any other advertisement, it takes users to sponsor’s website, application or any other target landing page.

The promoted pins work like any other promoted content on other social media sites. The reach of these pins depends upon the bid placed by the sponsor and the bid rate depends upon the users interest and other factors.

It is still unsure if the Pintetest is making any kind of money out of buyable pins as well or not. It is sure that businesses are not giving anything in return but we can talk about the technologies to which this feature is restricted. They might be one of the sponsor types for Pinterest. Though, we would love to update if we see any news coming in regarding this.

We feel that Pinterest is a better social media platform for users with its major focus on the relevancy. It shows you the pins according to your interest. Along with this, even if you sponsor, you will be shown to the users who will be highly interested in the products/services you provide which ultimately increases the click through rate. Pinterest is one of the fastest growing websites with 50% growth rate every year.

Tell us more

If you think we have skipped on any of the important information, please write us in the comment box along with the source so that we can include those valuable points.

Also Read: Whatsapp Business Model : How Does Whatsapp Work And Make Money?

##  How does Amazon Work: A Look into Amazon Business Model and Revenue Analysis

## Facebook Business Model: How Does It Work & Earn Money?

5 Most Productive Digital Marketing Strategies Along With Quick Tips for Startups

Marketers believe that marketing has changed more in the past two years than in the last 50 years. Most of the startups are utilizing the power of digital weapons but not all tools in their arsenal are effective. In this article, we will put forth 5 of the most effective digital marketing strategies.

Inevitably accepted Email Marketing: Despite predictions of its death, Email marketing is still shining on the checklist of marketing experts. I can still see my email marketer delivering long spreadsheet of responses he gets out of his email marketing campaigns. The responses are generally blended with a variety of queries, requests for quotation, suggestions etc. Email marketing still delivers a handsome ROI, specially to the newly started businesses. Email marketing is not dead but has taken a new birth with personalization. Nowadays, more and more companies are indulged in hyper-personalization to get most of their email marketing efforts convert into sales.

Quick tips for startups:

A. Do-not buy readymade email databases from third parties. If you send your emails to the people who have no idea about what you do, then you will soon sound fake to them. I feel pity for one of my friends who registered herself on a matrimonial site and started getting emails from 3 more unknown sites. Selling or purchasing data is a false practice. Focus on people who have subscribed to your emails or shown interest in any of your advertisement or social media campaigns. Always give an option to unsubscribe at the end of your emails so that you may know when a person is getting irritated due to your emails.

B. Make your email look good with a clean, catchy and good design. It should not look like a boring lump of text. Create your own sleek templates or you can even hire a good Digital marketing company to carry out the designing as well as execution work.

C. Make your email subject line look exciting because you have just one millisecond to convince your potential client to click and open mail. It is half the battle to getting people click and read your email.

D. Make sure to send emails from a person’s account rather than some no-reply@whatever.com. People prefer to engage only when they trust that you are a real person and not some robot.

E. Make sure to include a strong call to actions like “Get your free course now” which strikes the reader’s mind firmly

Social Media Marketing for an effective brand promotion:  According to a report by Statista, it has been found out that 90% of marketers believe that Social media marketing is important for a business. It majorly gets its significance in branding of business. Especially, if you are a startup and want to get known in the industry or among audience, you need to focus upon your social media strategies. More importantly, Social media sites give you a wide range of advanced filters to refine your audience at a deep level which enables a better targeting & increases the chances of 50-80% conversion.

Quick tips for startups:

i. If you are a startup then beware of your own random acts of marketing like tweeting about the launching date of your brand or about your USPs. Every step is to be well taken. Do extensive research of your target market, their choice and preferences. Notice their response on your competitor’s posts and efforts.

ii. Once you are aware of your target audience, you need to see where do they remain active the most. Find out which platform they are using. Instead of coming up with a rigorous marketing on all the platforms at once, you need to focus on one or two good platforms that are relevant to your business. Suppose, you are coming up with CRM solution then you need to target professional class, probably the ones who are running their own firms. You will find such crowd either on LinkedIn or Twitter. On the other hand, if you are about to launch a picture/video editor then chances are you must be targeting the young people which can be found on Facebook or Instagram.

iii. At the initial phase of your marketing, create a high level social media marketing plan which can include your daily or weekly goals of acquiring 10-100 followers. Draft platform based marketing plans as per your research.

iv. Be consistent with your posts as per the crafted marketing plan. After you have delivered your brand message, it is the time to keep your audience engaged with consistent posts.

v. Usage of social media automation tool is highly recommended. These tools come up with such features that you have to invest time in crafting your strategies and posts, the rest of the work is managed such tools. These tools help you schedule and deploy updates from one single dashboard.

Pay-per-click for making a quick reach to your target audience: PPC also profoundly known as Google Adwords is a widely accepted tactic nowadays to swifty reach target audience. It allows you running advertisements on Google listing as well on various relevant sites on which your potential audience comes. It is known for generating sales ready leads. For example, when you type any keyword over Google like “Buy Black Shoes”, what you see at the top are search ads tagged with symbol ‘Ad’. If done properly, PPC can build heaven for you but it can destroy your venture and eat all your budget if not done with care. If we talk about startups, they generally come with little budget. So here are some tips on how to run PPC on small budget.

Quick Tips for Startups:

a. You cannot hit and try too much as far as PPC is concerned because it constantly eats up your marketing budget. Being a startup, you need to spend enough time understanding Google Adwords like how the Ad auction works, how to set up negative keywords, how to run a successful campaign and more. So, hit the library and start reading. If you do not want to spend time in reading then there is a quicker way to reach your goals- Hire a leading Digital Marketing company & it will not only assist you but also would also bring results.

b. Focus on what problem are you solving or what changes are going to bring in the existing market. Do not just keep pushing your product name or category on to people, instead focus on the problem solving keywords. For example, if you are selling a weight loss tracking bracelet then rather than targeting “Weight loss tracking bracelet”, you need to target “Weight loss help” or “Weight loss equipments”.

c. What startups are generally restricted at is budget. They generally make a big red flag with creating a big list of keywords and running multiple campaigns. This is the reason why most of the businesses are scared of running PPC. Your campaigns should always be determined with budget with two-three campaigns at starting.

d. Keep an eye on your competitors! If you are a startup coming up with a unique offering then you will not have direct competitors but if you are into something mainstream then obviously how can you can your Ad alongside Northface or Levis. Show you ad along with the companies that are lesser known or new to the market.

Search engine optimization for stable business generation: Now that you have built a website with a great design, it is also important to make it visible. You cannot rely on advertisement for long hence it is important to appear in organic searches. Search engine optimization is a set of techniques adopted to make your website appear high on search engine results mainly, Google results. Any digital marketing company you approach would first work on the on-page issues of the site so that it can be made search engine friendly. Later, time is spent on link building and other activities so that high ranks can be achieved and hence leads can be generated.  

Quick Tips for Startup:

1. A startup needs to first decide on to its goals and desired outcomes from SEO. For example, an ecommerce website owner would aspire to get transactional sales out of his efforts whereas big publishers care all about personalization and traffic. SEO goals can be even broader depending upon the business line. It can be done for increasing the topical authority of a website or increasing awareness in a particular industry.

2. Take some required foundational actions such as Setting up Google Analytics, Google conversion tracking, Search Console, Marketing automation tool, CRM etc to execute and analyse your strategies.

3. Perform a high level SEO audit including a check for duplicacy, robot.txt, meta robots, broken media assets, 404 pages, improper redirects etc. These are some of the onpage factors that affects your site’s ranking. Before proceeding with linking, influencer marketing or other costly tactics, you need to first make sure that the website is at least search engine friendly.

4. Check website’s UX, navigation and most importantly, mobile friendliness. Nowadays, it is the most important thing for your target market as well as for Google. Google is nuts behind providing a great User experience to its users. Even if the user jumps on your app or website somehow, only a good UX and navigation can keep him/her engaged. You can consider tracking the engagement with heatmap or may be mouseflow which would help you understand the weak points of the website.

5. Search for the relevant directory and make sure you get listed and linked there. Search for the influencers of your niche and convince them to put your product/service’s reviews on their sites or social media platforms. With the high usage of social media, influencer marketing is gaining popularity, since they have a great followers base.

Content Marketing to create a long term relationship with your potential audience: When they say Content is King! It is not a statement to ignore. Content is the base for all types of marketing you perform. It helps you develop a long lasting relationship with your target audience. Apart from hundreds of other benefits, it also lets you build an authority and credibility in your niche.

Quick Tips for Startups:

!. If you are a startup then chances are that you must be a big lost in terms of what content is to be written. It is simple! You need to visit and analyse some of the great doing blogs of your niche. Means, suppose you are coming up with a digital marketing blog then you should be following Moz, Searchengineland, Searchenginejournal and more such blogs which are already doing well.

!!. If you are new to the industry then Guest posting is a great opportunity for you to reach a great audience. Guest posting is done on high authority and high traffic sites relevant to your niche. These sites might or might not charge you for the blogs. You need to seek such sites and ask them for a link so that people can travel from their blogs to your site. There are a number of guest blogging opportunities out there and some of them would be found in the form of “Write for us”, “Contribute”, “Guest Blogging” or “Become a competitor”.

!!!. Content does not mean posting a 100 words text on social media. Its is about pictures, videos and infographics as well. When you scroll down to social media, which type of content catches you attention the most- A 100 words post or an infographic with a catchy and engaging presentation? More likely, the infographic!

!!!!. Consistency is the key to success if you are doing content marketing. If you are able to generate engagement then you should make such type of content available to the readers on daily basis else they might feel betrayed. It was just yesterday when I cleared out  some of the unnecessary pages that I once followed on Instagram as there is no regular content I am getting from those.

Influencer Marketing as it is catching on really very fast:

Influencers are the ordinary people who have power to influence the decision of buyers. They operate according to various industry lines like Fashion, Travel, Food, Healthcare and more. Generally, they are seen to increase and serve their followers through their websites, apps or mostly social media platforms. Big brands are still indulged in celebrity endorsements while the new entrants use the power of influencer marketing. Even the popular brands now know its importance. It is a great off page tactics these days which leads to a good branding for a business. Suppose, you provide digital marketing services then chances are- you will reach out to Neil Patel to review your ideas or may be give you a link.

Quick tips for startups:

a. Start with finding the influencers that are ideal for your industry. There are several tools available on the internet to filters influencers on that basis of engagement rates, platforms, category and location. You need to keep your focus on both relevance and popularity.

b. You need to provide freedom in terms of creativity to your influencer. Do not impose your thoughts on them as they know their audience more than you. You just need to tell them about your products/services and USPs. Rest, suggestions should be given but not forced. People do trust influencers for expertise and authenticity. Almost all the good influencers spend a lot of time on crafting their post to best suit the audience.

c. Choose to start with micro influencers of your niche who have a 1k to 100k of followers rather than celebrities. A study has found that 82% of people are more likely to follow micro influencers than celebrities. Choose micro influencer would increase the chances of conversion as they know your target market the most.

d. Influencer bloggers are always seeking for fresh content so you can consider guest blogging for them. If you are coming up with something new in your industry then your chances of getting published automatically increases.

e. If you do not have monetary values to deliver then you can consider providing free products to the influencer in return of the reviews. Some influences might agree whereas some might not. It is a technique adopted by Startups generally who do not have much funds to spend on paid advertisement of the products.

Startups have started emerging more than ever before because of the rising business opportunities. It is not just to come up with an idea and maintain digital presence, you also need to promote and market your products well enough to reach your target audience. If you fail to make a reach to your target audience then it is a waste of time and effort even if you reach 1000 of irrelevant people in a day. The above given tips would be helpful for you to step into digital marketing world. Do not forget to mention in the comment box about  which strategy do you think is the most effective out of all.

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