The modern digital business models and customer values

A good business model is a core factor of whether a business can be successful or not. A good business model needs to be infinitely reproduceable, that is to constantly creating values for the cusotmers. it is called as the customer value. but what is a customer value? It means that a service or a product is beneficial and valuable to a population and it is probelm solving so that the users are willing to pull out their wallet. In simple words, customer value is a trigger for the buyers, emotional value? functional value? or experimental value? One example can be a product called the posture corrector which is shown in the diagram below.

what does this product do is to correct people’s back posture. from the google trend above we can see that since from 2018 this product has became the most trendy product in the digital market. From my own experience, many online store were selling this product online via doing facebook ads. A digital business guru named Gabriel St Germain has made around 200k US dollars in just less than 6 months with this SINGLE product! how does this product create customer value? there are lots of people have bad back posture due to lots of reason. people generally care about their look in the public, a good posture will undoubtly give out better impression of yourself. this is what we call a functional customer value.

Nowadays, there are lots of online digital models. Only those who created value for the users survived! This is a shocking fact. According to many sources, more than 90% (Ninety percent) of all Internet business start-ups end in failure within the first 120 (one hundred twenty) days. therefore to create customer value is a crucial steps for digital businesses. A very good example is netflix, Netflix is an online DVD ‘rental’ website in subscription model, base on research, netflix has around 7 millions customer. The key values they created for customers are the quality of films, cheap subscription fee (13-15 dollars per month which is very afforable for the customer)convenient for the customer to watch any films they are interested in.

Therefore, creating customer value is to place the benefit directly in front of the potentail customers that is how a business model can be long lasting.