Establishing a new business model in a market is no easy feat. You talk to as many prospective customers as possible, finalise your approach, launch your product or service and then hold your breath. When you see your first transaction it is a superb moment of validation. (Growing beyond that initial transaction is something I will save for another post.)
At Bidvine our model is based solely on a term we have coined as Cost Per Accepted Lead. And before I get in to the “What”, let me cover the “Why”.
As you may know, Bidvine is a marketplace that connects local service professionals to customers. We enable users on both sides of the equation to liberate their time by making it easier to find the right professional or your next customer.
After many conversations with service providers, we noticed a common theme. Specifically, that they were spending way too much time, effort, and money trying to build their business. These professionals try everything from distributing flyers, posting on message boards, building websites, to trying to figure out how to run ads online. We wanted to drastically simplify the process to enable service providers to focus on their craft/trade/passion.
Our thorough understanding of these pain points, led us to the solution of a Cost Per Accepted Lead (CPAL). I am sure you are familiar with Cost-Per-Lead marketing, where you only pay for customers that visit your website. With CPAL, professionals view all incoming leads (i.e. consumer requests) for free – they only pay to get in touch with leads that they are interested in. Moreover, if the lead doesn’t read your message (i.e. quote) – that cost is refunded.
As a marketer, if you told me there was a way to get a steady stream of relevant prospective customers that I could cherry pick from and be guaranteed that they would see my message, I would be all over it.
Why should you care?
Whether you are starting a new business of your own or are in a position to influence your current organisation’s business model, it is imperative that you understand the pain points of your prospective customer. Don’t just look at what has previously been done, but instead look across many industries. By finding the approach that best aligns your business with your customers needs, you will be able to discover a critical component to your strategy.
Cross posted from LinkedIn