Retention figures as a basis

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Retention figures should often even form the basis. The margin that you make as a retailer when you sell a television or a pair of shoes will in many cases not differ much from competing retailers who sell the same. However, when the customer orders something from you 6 times a year, and does not return to the competition or only orders something again 2 times, the differences become very large.

Amazon Prime source:
source: Hadrian / Shutterstock.com

Retention programs such as Amazon Prime and Bol Select also play an important role in the growth strategy of these platforms. With these retention programs, Amazon and Bol are able albania phone number library to retain customers for longer. As a result, they earn more from these customers, which in turn allows them to invest more in the acquisition costs of new customers. A great flywheel for sustainable growth.



13. The battle for the winning business model
In essence, we only know 4 different business models. The oldest – and in many cases also the least flexible – model is the model of hotels and car manufacturers. Another well-known model is the advisory model, which includes consultancy companies, for example. In addition, you have so-called asset light models, where the initial investments for 1 version are often large, but then cost almost nothing.

Microsoft and Salesforce are examples of this. Finally, you have the network orchestration model, with platforms such as Amazon, Facebook, Booking.com, Uber and Airbnb. When you look at where the value that has been created within, for example, the Fortune 500 in the past 20 years, it consists of about 20 percent of asset light models and about 80 percent (!) of network orchestration models.