Sharing Economy: An economic system based on sharing underused assets or services, for free or for a fee, directly from individuals. In the so-called terms collaborative consumption, the sharing economy or the peer economy, owners rent out something they are not using, such as a car, house or bicycle to a stranger using these peer-to-peer services. The company typically has typical style of rating or review system so people on both sides of the transaction can trust the other. With the popularity of these services, many people don’t need to buy when they can rent from others.
We live in an era of customer revolution. This means —an era when a single empowered customer can have significant impact on your brand. The companies must rethink their approach to customer relationships in order to survive. Companies that ignore the growth of the sharing economy are at the risk of becoming irrelevant. The companies that are well established also can’t ignore the sharing startups because the collaborative economy is here to stay.
The companies that engage in customers can be aware of latest trends, customer behavior and attitudes. This is the reason why companies should focus on customer engagements. On-demand, mobile-enabled ,customized products and services are fast becoming the new normal in the sharing economy. Companies that fail to offer customers what they want, when and how they want it are in greater peril.
Sharing Economy Companies
Determining the right Strategy
Developing a deeper understanding of your customers can help you build the right strategy for them. Companies need deep customer intelligence in-order to determine the the right path forward. If you understand what motivates your customers and how trends shape buying behavior overtime, you are better prepared to pivot proactively and evolve your strategy and explore tactics. If you understand what motivates your customers and how trends shape buying behavior overtime, you are better prepared to pivot proactively and evolve your strategy and explore tactics.
There are three main ways companies can compete in the collaborative economy:
1.Price: Price is a significant driver to the growth of the collaborative economy. A great majority of sharing transactions are at least partly motivated by price. Getting a good price is an extremely or very important factor in 68 percent of sharers’ latest sharing transactions.
More than half of traditional purchasers, those who choose traditional ways of buying instead of using a sharing service will consider the collaborative economy if it means saving 25 percent. Cost is an even bigger factor among younger customers like millennials and Gen Zs.
2. Convenience : Convenience was the important reason for using sharing service, beating price and product or service quality. Enabling on-demand and instant access to your products and services is a necessary step to competing in the collaborative economy.
3. Brand : Positive brand recognition is important for top players in the collaborative economy. Brand is the most useful path for companies with strong brand recognition and positive brand sentiment. This is particularly true in markets where customers are sensitive to risk. The rise of on-demand technologies doesn’t change the fact that brand recognition and market dominance are still closely related. In fact, across all age groups, brand is as important as convenience in determining whether a customer will consider sharing or buying. Brand trust determines whether buyers will choose traditional buying over sharing, and vice versa.
To determine the right path forward, however, companies need deep customer intelligence. If you understand what motivates your customers and how trends shape buying behavior overtime, you are better prepared to pivot proactively and evolve your strategy and explore tactics.
This is the age of sharing economy, companies need to better anticipate and resolve customer issues, boost their brand affinity and drive customer loyalty. Achieving all of these requires customer intelligence that’s rooted in ongoing engagement with the increasingly empowered customer. In order to keep up with the competition, and the high demand from customers, the every industry needs to serve people more quickly and efficiently.
What is great about constant evolution of technology and the objective is that to make people’s lives easier. Now people expect things to come to them faster and easier, new technology helps solve that need. There have been several different advancements in technology that have been a part of revolutionizing not only how people live, but how businesses work.
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