Five Ways to Differentiate Yourself from Larger Double-Sided Marketplace Service Providers
There are concrete methods available for business owners to positively differentiate double-sided marketplaces that are just starting out from their larger, more established competitors. In this article, we’ll discuss five of them.
Start with a Niche
Starting with a niche market currently being underserved is an excellent way to engage the audience your company most hopes to attract, with as little cost and outward energy as possible. Begin with a segment and become a household name within the niche market so that the recognition and momentum propel you forward. Once you have the propeller going, it’s time to move on to bigger segments – but you have to start somewhere local first.
Location, Location, Location
Powerhouse people pleasers like UberEATS and Deliveroo have a major marketing edge: they are available in all the major cities, making food deliver easier than ever. So, how does a small, local company compete with this kind of force?
Ad-tech company tamme was designed to assist double-sided marketplaces in balancing supply and demand suburb by suburb, everywhere around the world. The program automates budgeting, channel selection, creative selection, dynamic content generation, ad buys, placements, and reporting for double-sided marketplaces based on the analytics data received from the marketplaces website and apps, as well as the predictive data produced by our proprietary machine learning algorithms.
It takes a plethora of dedication to make something magical happen when you’re against seriously large competitors. Unless you have buyers, sellers won’t be attracted to the service and, without sellers, how will you get buyers? Automation whenever possible puts your company in the driver’s seat.
Build Trust, Achieve Liquidity
Personalized businesses like TidyMe and MadPaws are prime examples of how companies work alongside their customers to build trust. How much more personal can a business get than offering to walk your pet or clean your house? House cleaning and pet sitting and walking are niche markets and both businesses stepped up to fill them.
If a double-sided marketplace is going to succeed, it needs to meet liquidity as early on as possible. In order to make this happen, the trust factor has to come into play. The use of highly verticalized plays are increasingly compelling, so stick with what you know, build trust and liquidity will soon follow.
Create a Network Effect
Not only should the product or service fit a specific need or demographic, the network itself should be accessible. A Network Effect occurs when you have a critical mass of users in one social vertical. Social media is an excellent example, as are websites like eBay, Flickr, PlayStation, and others. A valuable piece of the networking puzzle is ease of transactions.
As users populate the platform, returns increase exponentially. Create a network effect and watch the users spread the word themselves without cost and pressure on your part.
Don’t Overpromise, Always Deliver
Setting reasonable expectations is one of the top reasons smaller double-sided marketplaces succeed – and doing the opposite will almost always result in failure. You can’t build trust and create liquidity if you’re always over-promising and under-delivering.
Remember your customers and always put them first as much as humanly possible. Not only will this create the business model you can be proud of, it’ll also put you on the fast track to standing apart from the competition.