Platform businesses operate on a fundamentally different model from traditional service or product-based businesses. The success hinges on actively engaging two main sides of the market: suppliers and consumers, and the primary tool to do this is through incentives.
Traditional incentive management often involves bulky spreadsheets, complex queries, and inefficient processes. It's not uncommon for businesses to channel more than 40% of revenues toward marketing and incentives – a costly endeavour, especially when these incentives do not yield desired results. The high churn rates indicate that most incentives are misaligned, inefficient, and fail to compel users to stay loyal to the platform.
Like many areas of business, automation is paving the way for a future free from the constraints of manual processes. Incentive automation provides an innovative solution to these issues, offering a more streamlined, effective, and cost-cutting approach.
Incentive automation in platform businesses involves the following:
i. Effortless segmentation – dividing users into groups based on specifics behaviors,
actions, or events.
ii. Triggering incentives – based on varying user behavior or predefined parameters.
iii. Enhancing communication – communicate personalized messages directly with customers.
Businesses that implement incentive automation can expect numerous benefits:
i. Reduced churn – personalized and targeted incentives increase loyalty and user retention.
ii. Increased lifetime value (LTV) – with reduced churn comes increased LTV.
iii. Viral growth – well-strategized incentives create a stronger, stickier relationship that promotes growth.
Despite the clear benefits, successfully implementing incentive automation can be a challenging journey with many moving parts. Luckily, platforms like Village are uniquely positioned to assist businesses in this endeavor.
Village is designed specifically for platform businesses of all sizes that aim to automate segmentation, incentives, and communications. The platform is fueled by best practices, cutting costs, and driving revenue with powerful automations. Village integrates seamlessly with your existing operations, providing embeddable solutions personalized message cards, leaderboards, and more – all with simple API and low-code options for an engaging user experience.
By leveraging Village’s tools, you can take a proactive stance against high churn rates, inefficient spending, and the imbalances between supply and demand. Village has a proven track record in automating previously manual, inefficient processes, transforming them into streamlined, effective, and data-driven strategies that fuel growth.
Invest in the future of your platform business today with Village, and experience firsthand how incentive automation can revolutionize your operations, user engagement, and bottom line.
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