Choosing a customer centric internet business model is the strategic decision you have to make when starting a web based business. Being customer centric is about doing everything possible to learn about your customers and give them what they want. Using your knowledge about the customers you’ll be able to sell more products to them.
The decision is strategic in a sense that it sets the method of doing business. Instead of focusing on selling products to as many customers as possible this business model tries to maximize revenues by offering different products to the same customers. You can’t change this strategy down the road without radically changing the way you do business.
Designing a Customer Centric Online Business Model
To understand how this business model works let’s start with the concept of customer lifetime value. The lifetime value of your customer is how much they spend with you over the years until they stop buying. If you only sell one item and then never approach them again you’ll have bad lifetime visitor values because you always rely on new customer to support your business.
Customer centric strategy focuses on maximizing value from each of your visitors for building loyal, repeat customers. Repeat customers are your key to build long-term sustainable revenues. They already have positive experiences and have a deep trust in you and your products. They are more likely to buy other products from you in the future.
To build a customer focused company you have to design your business process around your ideal customers. This includes profiling the ideal customers, developing a customer oriented value proposition and providing communication facilities for the customers. The strategy for growing your business is not product innovation but customer intimacy.
Internet Business Models You Can Use
Once you design the method of doing business it’s time to find ways to generate revenues. Here is a list of internet business models that you can apply for building a customer centric internet based business:
1. Subscription revenues. You can set up a membership site that offers either premium information or web based software. It’s possible to charge anything from $10 to $500 per month depending on the value of your protected contents. With zero overheads you can get regular residual income, month after month.
2. Affiliate revenues. You create a theme based site and offer a free newsletter to build relationship with your prospects. Next, join several relevant affiliate programs that offer residual and monthly commissions. In this internet affiliate business you get commissions by promoting affiliate products that your prospects want via your site and newsletters.
3. Sponsorship revenues. Sell your free space for sponsorship ads based on time, not on the number of impressions. If you have so many targeted visitors advertisers will want to pay to sponsor your site.
In addition to the above internet business models there are other sources to generate more revenue stream. Offering online advertising spaces, selling your own stuff or products from your dropship business and generating leads are some of them. But whatever you do the focus is still on your customers. You’ll start with identifying customer needs and then provide as many products, services and solutions as you can to satisfy the needs.