These days digital marketplaces and social media cannot be separated from each other. Social media has taken up the digital marketplace to revolutionize the way people perceive the online presence of brands and the way they interact with the manufacturer or producer of the products and services they are interested in. As a result, a new business model has emerged in the online sphere, which is popularly referred to as the ‘market networks’.
But since this is a relatively new concept, there is not much awareness about it. So, everyone- customers and producers-needs to understand how market networks are different from traditional marketplaces. Also, there are various key components about a market network’s working and success that its users should analyze. Finally, since this model is not equally effective for every kind of business, a rough idea about which type of industries will actually benefit from it is necessary to be understood.
The emergence of Market Network
At the outset, ‘market network’ can be defined as a combination of online marketplaces with high reach and unique features of social media. This new business model was first introduced by a venture capitalist working in Silicon Valley. James Currier first introduced this new form of the marketplace that operated online and was vastly different from traditional marketplaces. According to him, this business model will be especially beneficial for people dependent on freelancing to conduct their business and earn a living. Whether clients or freelancers themselves, market networks will provide them with a platform to run their business activities with greater ease.
This business model is so effective to conduct business because it introduces a unique blend of professionalism with a personal touch. Using market networks, you can showcase your professional work and profile to your clients and use the features of social media to build a bond of trust that will greatly benefit your business. On the other hand, customers also benefit from such a platform since they get access to all relevant information to be able to choose the product or service provider that will suit their needs the best. Transactions are also made easier on such platforms providing an overall smoother business experience.
To summarize the definition of a market network, it can be defined as a means of simplification of complex services that require human involvement and benefit society.
Factors affecting the operation of a Market Networks
There are various ways in which you can ensure the success of your market network. Certain key elements are closely associated with the operation of the market network that will help you understand these platforms’ functioning and make your market network successful.
1. Give special attention to complex services on your market network
Market networks usually involve dealing with complex services and projects that are complicated in nature. Simple transactions are not as frequent on such platforms. To understand this better, you can take a simple example of online shopping. While purchasing a book or a piece of clothing online does not require much time and effort, using an online service provider for planning an event or working on long-term projects requires much active participation and involvement for longer periods. Thus, a market network will be better suited to the latter due to its ability to carry out complex services smoothly.
Also Read: What is Social Networking?
2. Recognize the unique identity of each customer
In the case of a complicated project, you will never find two clients who are the same. Each client has his own set of preferences and requirements. Similarly, each service provider who caters to the needs of the clients is also different. This is what sets the market network apart from traditional marketplaces. Such a platform helps indulge the benefit of having an identity online. It enables you to better sell your products or services and help clients have better faith in your services.
3. It provides a platform for communication
Communication is always key to any business transaction. This is another factor that distinguishes the market network from other platforms. Since market networks usually facilitate long-term projects, communication between the client and the service provider becomes extremely important to ensure everyone is on the same page. The market network provides a good platform for such communication.
4. A suitable platform for recommendations
Every business flourishes with recommendations. When your old customers provide insightful review and suggestions about your services, your chances of gaining new customers increases and your business grows. This happens in the case of market networks. When you get positive feedback, you get a free flow of referrals, reducing your acquisition costs.
5. Helps provide better customer satisfaction
By facilitating a higher transaction speed between the clients and service provider, market networks help ensure that your customers are satisfied with your services. It provides you with the right kind of platform and software to carry out your business, making the entire process much more efficient and reducing risks of miscommunication.
Market networks obviously have the ability to challenge conventional economies. Finally, this current category of online auction sites may have a huge effect on how service providers perform their duties and make a living. The outlook for business networks seems to be rather positive. James Currier believes they have a bright future ahead of them.