How business model evolution can and will help to overcome the trust challenge for corporations
Traditional business models have largely been built on the expectation that customers will pay upfront for a product or service. The more explicitly we can tie payment to impact achieved, the more successful we will be in restoring trust.
Today’s upfront payment business models tend to foster a short-term transactional mindset in companies – make the sale, collect the cash and move on. If we start to focus on impact, companies will need to evolve a longer-term view of customer benefit.
The second dimension of business model evolution involves the increasing revenue potential from providing insights from data back to the customer. They can start by providing data-driven services to give customers more insight into the current context in which they are using products and services. This is in sharp contrast to how most data about customers is used today.
In today’s business models, the ideal outcome for the vendor is a one to one relationship with the customer. That’s going to change. As customers become more powerful and demanding, they are going to seek out vendors who can connect them with a broader range of products and services from third parties. If customers pay for this service, they will begin to see that vendors have their interests in mind and are becoming more and more helpful in connecting them with the resources and expertise that are most valuable to them.
As business models evolve on these three dimensions, there will be an opportunity to deepen the alignment of the long-term interests of vendors and customers.
Business Models and Trust by John Hagel on LinkedIN