5 Interesting Business Models
We can all stand to learn a lot from enterprises that take a different approach. Business health is measured by how adaptable our models are, and how creatively we pursue our customers.
Here are five businesses with something to teach us.
Pictofit
Pictofit is a very simple product — an app that lets online shoppers upload an avatar to try on clothes before buying them. Rather than relying on guesswork, consumers can make purchases with the right information in hand.
Why is it interesting?
Pictofit really embodies the entrepreneurial ideal — find a gap, and fill it. In this case the gap is the large volume of clothing returned by consumers when it doesn’t fit.
Preventing these returns is a win/win for both the businesses dealing with tough distance selling regulations, and consumers who want to make the right purchase first time. The app is so simple to use, consumers readily provide valuable data about their browsing and buying habits.
Keyword: Convenience
Ziferblat
The pay-as-you-go model has been applied to all kinds of products, but Ziferblat is probably the first coffee shop to work this way. The proposition is simple — rather than paying for hot drinks, customers pay for the time they spend there, at a rate of 8p per minute.
Why is it interesting?
In the highly competitive coffee shop market, it can be hard to get your customers to keep coming back. Through a distinct payment model, Ziferblat has managed to find a way to mark a corner for themselves, and keep the same customers returning. (Presumably, many of them visit to get work done…)
Keyword: Loyalty
Which factors most inhibit SME innovation?
Share Frome
Frome is a sleepy market town in the South West of England, that also happens to be the home of a revolutionary non-ownership concept. By registering for a free membership, Share Frome customers gain access to rental items like gardening and DIY tools, saving the need to buy their own.
Why is it interesting?
The idea of renting equipment is nothing new. However, rolling that into a free membership model enables Share Frome to source new equipment through credited donations, which in turn means that they can charge far lower prices.
While their stated aims are environmental, there is also a persuasive business case for appealing to a broad and price-conscious market.
Keyword: Targeting
Friendsurance
This insurance broker groups policy holders and places part of their premiums into a cashback pool. Small claims are paid out from the pool, and if no larger claims are made, members receive a portion of the premium back.
Why is it interesting?
Once again, this is a model that benefits both the industry and the consumers. By relying on the shared pool, and collectivising payments, Friendsurance has massively reduced the number of escalated claims. In the broader sense, this product works because it reintroduces transparency in an industry that has a short supply.
Keyword: Trust
CircleLoop
Well you didn’t really think we’d leave ourselves off the list did you? CircleLoop provides affordable cloud-based telephony to users, enabling them to take their entire business with them wherever they go.
Why is it interesting?
By putting landline and mobile telephony in the cloud, CircleLoop helps businesses of all sizes establish their credentials with local and national numbers. It also caters to the changing business environment by aiding remote working and BYOD initiatives, while saving money on unnecessary hardware.
Keyword: Flexibility / Modernity / Scale
If you want to buy clothes online, grab a coffee, rent a drill, or buy insurance, you have some great options. If you want to move your businesses telephony into the 21st century, you have CircleLoop. Get in touch with us now to find out more.
