One of the best business models is a membership based business. If you have ever signed up for a gym, learning center or cell phone plan, it is all about the relationship. For most people to commit to a contract, they need to be very comfortable about the services, products or value they are receiving. After all, most people have trouble committing to basic things like short term goals or making a loved one’s recital. The new business model is growing in popularity focus on customer relationship management and retention.
If your company communicates and offers enough value, people just might sign up for all sorts of new business models. This is where the real money is for business owners and investors. The income is residual, predictable and stable. It’s no wonder so many companies rely on this great model. You should too.
And it is also a win-win for the customer who gets locked in pricing for services or products that could become higher in demand, leading to higher pricing. Customers are also benefiting from increased stability and reliability. So, what turns them off instantly?
High Pressure Sales Tactics
New business process models are important for growth. Sorry, but hard pressing, high pressure sales tactics just do not work like they used to. Today, information is available instantly. That means, you can not have someone come in for the first time, then tell them, “Hey! We have this deal that ends today!” Today’s consumers are way smarter than that and you come off looking sleazy. In fact, if hard sale tactics are done perfectly, you could risk coming off as careless and earning yourself a terrible reputation.
For example, there a high pressure sales people that will actually try to “sell” you and get you to sign up before you have even tried the services or products. Now, if there is no free trial, that is understandable. However, we are talking about asking someone to sign up before they have even toured the gym, seen a lesson plan or unlocked the display phone.
People Want To Try Things Out
People want to try things out. That is why rent-to-own stores are so popular. They need to feel comfortable before making any commitments, big or small. In the off chance, they do give in to high pressure decision-making, they often feel buyer’s remorse (a feeling of regret post purchase). With new business models that are incorporating longer trials, customers feel more comfortable and confident in their purchasing.
Consider Your Customer’s Feelings
Furthermore, if you ask someone to sign up before a trial or proof. It really shows that you are not considering how the customer feels. If you are using old business models, being considerate matters to attract and retain customers. Asking customers to sign up without providing them substantial proof of value just shows that you do not care.
So, be considerate for your customers and avoid pressuring anyone with obvious, simple SEO tactics. It does not work. In the end, new business models will put their customers first, winning over the majority of market share.
Create Your Own Business Model
The best way to guarantee that you are delivering what your customers want, is to create your own business model. Only you, and your customers of course, know what it is that your target audience wants and needs. That is why creating your own business model is an excellent idea. This allows you to tailor absolutely every aspect of business to your customers. You will undoubtedly find that this increases customer satisfaction and,ultimately, business performance and sales. If you really want to please your customers, create your own business model to satisfy their wants and needs.
Ad Revenue Model
Outside of the subscription business model, there are many other commonly used business models used by many of the most popular business companies. The free product/ad revenue model is another common one for today’s online businesses. This is the business model used by Facebook and other social media platforms. In fact, this is true for almost all content businesses online as well. That makes this business model one of the most commonly used among digital businesses.