Do you remember the first time you saw a sleek, sporty Tesla outshining everything in sight—in a mall? Maybe you had just dodged a pushy perfume peddler or had just dove into a cup of Dippin’ Dots when you stopped, gawked and mumbled, “That’s… genius.”
By making its products available in malls and through their website, Tesla was generating a value-creation network, the wisdom of which is undeniable, especially in hindsight. Whether you’re aiming to be the next Elon Musk—or simply the first *you*—a value creation network can help get you there faster. Here’s what these unique sales tools are, their benefits and how you can create one using a platform business.
What are value networks?
Value networks refer to connections between people or organizations that interact with each other for the benefit of the group in general. One of the primary purposes of a value network is to foster a way for individuals and businesses to sell to one another. In addition, all parties benefit as different parties share helpful or profitable information.
The benefits of a value network
A value network gives you several advantages, including:
- The ability to control how you interact with your target market.
- Faster speed to market because you can launch a product or service using your own ecosystem instead of having to depend on retail middlemen.
- The ability to monetize the data created in your ecosystem. For example, you can not only collect advertising revenue from businesses but also offer them detailed insights into how customers interacted with their ad content.
Platform businesses and value network creation
Platform businesses can leverage value network creation to build the heart of their sales system around their network. In this way, their customer base consists of people and companies in their network, those with whom the business already has a personalized connection. As a result, an organization ends up selling to people who’ve already demonstrated a level of commitment to their network, services, products or information.
For example, JetBlue does most of its bookings through its platform. This enables them to not only leverage committed customers but to have granular control over the customer engagement process, the timing of promotions, and how they price their tickets.
Another way of thinking of a value network via a platform business is as your very own social media platform. Facebook, Instagram and LinkedIn generate funds and support their success using 21st-century gold: user and platform data. By controlling their own value networks, they can custom-tweak how they leverage the data insights the platform makes possible. A platform business can accomplish something similar by its infrastructure and support revenue streams.
If you’re ready to see the potential of consolidating your audience into a value network, you can connect with Community Cloud. By monetizing your following, you generate fresh revenue streams while simultaneously supporting your existing sales. Learn more by booking a demo today.