8 ways to draw users to your platform with network effects
26 April 2022
Network effects play an important part in the digital commerce world. Businesses utilize network effects to improve the value of their goods or services by increasing the number of people or participants visiting their marketplace or platform. There are 8 different ways that businesses can utilize network effects to draw more users to their platforms.
8 ways to draw more user to your business platform:
1. Product features:
The needs of customers differ, and with a business platform that has the ability to add more products that are complementary to the ones already on your platform. By adding more products, you create a sense of differentiation that draws more users and creates a unique value proposition to all your users.
2. Partner with similar industries:
Create value for your users and for your platform by partnering with industries that build complementary products. Draw and attract more users while triggering other businesses to build complementary products for your business. By creating mutual benefits for each other’s businesses, the result is based on the rise of the indirect network effects. Create value by drawing in more users and businesses to increase the value of your platform and products.
3. Effective business model:
Developing and building an effective business model that is durable and scalable will offer your business the ability to handle the growth of influx of users over a longer period of time. An effective business model allows you to tailor to each customer segment that allows the value of your platform and products to increase.
4. Market strategy:
Developing a unique and durable market strategy will help to gain and attract your initial customers, by selecting a market segment that is specialized in a market niche will help to validate your products and how they fit into the market. Through a robust marketing strategy that is expandable you can continue to reach your target market that will in return increase the value of your platform.
5. Supply and demand scale:
The needs and demands of customers differ and change regularly. By continuing to deliver innovative and market demand products and services that are complementary to your platform. Through continues development and changes of the demands of consumers to ensure a unique value proposition, your products and services have to keep changing to solve the unmet needs of consumers. Creating a unique brand will attract a lot of customers on its own, as businesses and customers keep coming back and keep creating and building solutions for your platform that will increase the overall value.
6. Retain customers:
To sustain long term growth and value for your platform, a business would have to retain customers. To retain customers, businesses could lower their costs as it creates sustainable long term growth. Lower costs will help to maintain the volume of a customer base.
7. Beat the competition:
Multiple businesses enter the same market segment, by differentiation and implementing cutting edge technology to customers at a lower cost will offer you the ability to beat your competition. By implementing solutions as cost reduction and state-of-the-art technology you make it difficult for your customer base to choose someone else and hence will keep returning, which in returns increase the value of your platform and products.
8. Operational excellence:
Providing a positive customer experience to all users that visit your platform helps to retain them and have them keep on coming back to you for more services and products. By ensuring that all your systems are stable, safe and scalable. Through operational excellence, the value for your platform and services increase.
Implementing network effects into your platforms help to draw and retain new and existing users. Enterprise Outsourcing offers businesses the ability to create a stable, safe and secure platform for their users by utilizing state-of-the-art technology and best practices.
Enterprise Outsourcing also utilizes network effects on our own platform as well as for our clients. We strive to offer our customers a unique and valuable experience, which in return increases your value. Through innovative global technology, we aim to offer our customers with solutions that they require while partnering with companies in the same industry.