Understanding How Consumers Behave to Implement Digital Revenue Business Models
Businesses are always adopting new and innovative trends throughout the world to help optimize their structure and performance with potential customers. As a result, digital businesses often adopt the use of subscriptions, performance-based pricing, microtransactions, and freemiums to boost monetization.
Gone are the days when the use of ‘set thresholds for a fee’ and ‘single-unit transactions’ were the norm. The latest trend is rewarding users/customers for their interaction. High activity digital sectors such as mobile apps, content platforms and startups are booming with demand, ranging from fitness to fintech industries. The commonality between each sector is using methods of advertising through conversion to subscription, pay-per-click, in-app purchases and gamification reward systems to boost revenue and customer retention.
Companies that monitor actions as they happen are automating behavior-driven engagement and personalization, with much greater retention and engagement outcomes. But companies are also required to know not only what customers are doing, but also how and more importantly, why they are doing it to truly benefit.
Customer interactions define their risk-reward expectation
Each monetization strategy is built well by remembering one key factor, people take risks. The more feasible the risks are with immediate rewards, the higher the willingness to engage regardless of the success rate.
This is where the design of the rewards system used becomes quite important. From the shifting popularity of tiered membership systems to referring bonuses, businesses can steer user activity with value perception. Some sectors thrive on the very idea of risk and reward. Consider trading platforms, auction-based marketplaces, and skill-based gaming apps. These models all leverage real-time decision-making and financial stakes to keep users engaged.
A good example is online casinos that accept real money bets from customers, allowing players to enjoy gaming with the potential for real money returns. Each sector of the economy has its own unique form of regulation. From a business perspective, however, the success of these platforms stems from their knack for crafting engaging monetized content that gives the customer the impression of instant gratification.
These are also applicable to other sectors: a well-defined set of boundaries, low friction in exchange, and a well-thought-out promptness all add to the customer confidence bubble, even in the most dangerous of scenarios.
Ethical Design and Transparency
Designing the monetization model should be based off customer actions and interactions. Keeping seasonal spending spikes and traffic highs and lows in mind can help digital-first companies plan for changes experienced and every single element of the user experience. Well thought-out models enable setting reasonable expectations, offer the customer better service, and uses the right analytical tools to address potential pain points.
Companies should routinely check their engagement policies as there can be certain restrictions that need to be accepted to be conducive to user objectives while also aligning the business’s growth targets. Looking into important aspects such as putting limits on expenditure, confirming opt-in agreements, and what kind of intentional pause windows should be added, can further add to the relationship of trust that’s been developed between the customer and company to improves long-term loyalty.
Final Takeaway
When it comes to using rewarding business strategies, like gamification, loyalty programs adding real-time payments to user accounts and subscriptions that expands from multiple industries like gambling and trading into the digital world , all depend on the value a customer. Digital Businesses can learn from the real money online casinos model in this regard as a smart way to turn daily interactions from customers into monetization.
