Services on demand: a new logic redefining economic schemes
The Internet and digital transformation have transformed business models, industries and virtually every aspect of our daily lives. An example of this is the services on demand services, which have grown exponentially.
We are talking about an economic model based on the concept of immediately satisfying consumer demand. Specifically, by creating goods and services with characteristics determined by customers.
The logic of on-demand services implies a significant change that is redefining economic and social schemes. Do you want to find out how it is doing it? In this post we will explain its impact on business.
Advantages of on demandservices
The market for services on demand opens the door to countless advantages, opportunities and business models. The segments yet to be explored are infinite and examples such as Netflix are just one example of the success of this model.
One of the main advantages is that users pay for the service only when they use it. This condition allows customers to manage their expenses more efficiently and eliminates the fixed costs of monthly payments.
But the advantages are even greater. Do you want to know what they are? Let's see:
For the customer
- It offers and delivers a range of services without limitations.
- It implies a significant reduction in costs, as you pay only for what you use.
- Service conditions can be adjusted according to the consumer's needs.
- They are quick to implement.
- No long-term commitments or obligations are maintained.
For the company
- It can be replicated in business operations to improve many operational aspects of any business model.
- Improved management of expenses and costs.
- Results in terms of profitability or the implementation of new businesses become evident more quickly.
- Improve the performance of human talent.
- They offer optimal response time in resolving incidents.
- It does not require coordination with an on-site team to resolve issues.
- They ensure increased productivity and efficiency in companies.
The importance of satisfying the new consumer
Technological transformation and digitalisation have brought about significant changes in all areas of the global economy and society. This has had a tremendous impact on people, creating new consumer habits.
In this sense, the behaviour of new consumers suggests that they are making their purchasing decisions influenced by technology, a series of needs, emotions, motivations, desires and an optimal customer service.
This change in behaviour and consumption habits should be analysed in a differentiated way. Particularly, because of the increase in the consumption of online content and on-demand services, whose impact on personal and family finances is perceived and understood in a way that is more limited to what is #effectively used.
It is this context that has benefited platforms such as Netflix and Snapchat, Mercado Libre, Facebook and Amazon, which have capitalised on this kind of demand for pay-as-you-go as opposed to the traditional option of long-term subscriptions, for example.
As a result, millions of companies and businesses have had to adapt their products and services.
Given this reality, it is essential to anticipate the needs of new consumers and their changing habits, particularly when it comes to buying or contracting services.
So why focus on the consumer and their new consumer habits? The answer is because knowing the consumer's behaviour and new consumer habits helps to define the customer. In addition:
- If you anticipate their needs, you develop a viable and profitable business.
- CX, in general, and UX developments, on the other hand, are key elements and differentiators to stand out from the competition.
- You increase and improve your business opportunities
- You can improve their shopping experience and thus better meet their expectations.
- A customer-focused CX helps to generate more and better customers.
- You increase customer loyalty and customer lifecycle.
- You help increase positive word-of-mouth referrals.
- You boost your brand image and your competitiveness in the market.
- You achieve satisfied customers who choose you over the competition based on positive experiences and build trust.
New consumers are attentive to the type of response they receive from companies, which is why it is essential to measure customer satisfaction through a complaints, claims and suggestions management process.
On the other hand, identifying dissatisfied customers is a valuable asset for solving problems and demonstrating a willingness to do things differently.
The impact of on-demand services today
Today, AI (artificial intelligence) and IoT (internet of things) have drastically changed much of our consumer habits. In response, companies have been forced to provide much more efficient deliveries, with higher quality and service standards.
On-demand services are then geared to offer new standards around service delivery models. In addition, they are forced to reduce delivery times and the value of deliveries, which can be fixed or variable.
In short, it is about offering a type of service that is always available, for which you pay only when you use it.
As a result, it is now possible to contract on-demand services ranging from home renovation and domestic services to video and movie channels such as Netflix. Other famous examples are Uber, AirBNB, Rappi and Pedidos Ya.
Finally, on-demand service companies require partnerships to facilitate the purchasing process for their customers. For example, with mobile payment networks such as PAGO46, an ally to optimise cash payment methods.
PAGO46 and its contribution to the world of on-demandservices
E-commerce users are increasingly demanding better shopping experiences and on-demand access to products and services. In addition, they offer inclusive payment systems such as PAGO46, a mobile network for cash payments.
We are a cash collection system for online purchases of goods and services. Our aim is to bring the unbanked closer to online shopping.
In this respect, we offer an on-demand cash collection network. Our partners46 , distributed at fixed points or by delivery, conveniently receive cash payments anytime, anywhere.
Our App provides on-demand services in Latin America to clients such as; Uber, Movistar, Rappi, Beat, Netflix, Glovo, PedidosYa and Virgin Mobile, among others.
Conclusion
Many people associate on-demand services with online television and the Internet. However, any business model can reap benefits that include improving worker performance and increasing productivity.
In this sense, this trendy business model lowers investment costs and guarantees the efficiency of companies. Particularly, because it is strictly adjusted to the requirements and demands of consumers.
An example of this is the mobile online shopping payment network PAGO46 which provides on-demand services by collecting cash. Want to know more about our services? Click here.
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