Emerging service marketplace industry: How to meet the demands of millennials?
Today, the service marketplace industry accounts for $214 billion, Moreover, the industry experts have predicted a total turnover of $435.41 billion during the forecast period (2017 – 2021).
The world of business has begun tune into what we call today ‘the digital transformation’. This new dimension of digital has altered the requirements and demands of businesses. In fact, it changed the perspective, that the main focus of businesses today has shifted from generating massive profits to delivering an excelling and unrivaled experience for the consumers.
The concept of on-demand marketplace arises as the world recognized the need for an organized system to avail all immediate home services without any hassle. Introducing an all-in-one digital platform that contains all the needed services was the idea.
And guess what! The concept was a huge success. Today, the service marketplace industry accounts for $214 billion, Moreover, the industry experts have predicted a total turnover of $435.41 billion during the forecast period (2017 – 2021).
What’s Happening in On-demand Service Marketplace Industry?
Since its origin, the on-demand services marketplaces have excelled in meeting the day to day needs of the population. It provides a great deal of business for the service providers as well. Figures show that more than 86.5 Million Americans (42% of the adult population) have used an on-demand service last year. Similarly, 45 Million Americans (22% of the adult population) have offered some kind of on-demand services. Out of this 51% has testified that their financial situation has improved over time due to this. What is more impelling is that the global on-demand services industry is predicted to grow at a CAGR of close to 49% during the period of 2017-2021.
Emerging and Future Trends in On-demand Services Marketplace Industry
Despite its current course, many further future innovations are expected in the on-demand services market. Apart from possible technological innovations, there are few business trends that will probably become reality in near future.
The merging of on-demand service marketplaces - Due to the overwhelming number of service marketplaces, the industry leads might take a step forward to acquire the small organization that provides similar services. The acquisition of Yardsale and FOBO is the perfect example for this.
On-demand Partnerships on Rising - Creating partnerships with businesses has always been a proven strategy. But when it comes to service marketplaces, it can deliver more value to the customers. Partnering together to deliver a complete and unrivaled service is admirable, isn’t it?
Improving Efficiency and Speed - To deliver the best possible service at the right time, service marketplaces are striving to push their limits.
Essentials of a Service Marketplace Business to Meet the needs of the future
We are a part of an ever-changing world. Our demands, expectations, and needs change all the time. To survive required a great deal of adapting and innovating. The same is a necessity when it comes to businesses as well. Services marketplace industry has gained stability and grip but, what it takes for a business to survive. Let’s have a closer look at some of the things that must be done in order to keep your business alive.
Adopt an Efficient Business Model that Fits Your Purpose
Business models are crucial for any business since they define the plan to achieve your goals. So, the most vital step in building a successful marketplace is the business model. Fundamentally, there are 3 kinds of business models. Now, let’s take a brief look at those.
Transaction-Based Model - Transaction based model is the most common among all. The marketplace platform receives a fixed portion of an amount for every successful transaction. The more sales happened the more revenue generated.
Lead-Based Model - This is also known as a pay-per-quote model. The platform connects the service seekers with the service providers. Professionals who are interested or available will make bids for customers.
Subscription Based Model - This is more of a long-term commitment. Customers will receive services constantly for a particular time period. Customers are billed on a recurring basis as well.
Keep Yourself Updated with Upcoming Technologies
Technology is one thing that has an enormous impact on everything we do. We are so dependant on technologies since it makes our life much easier than before. Therefore, when a trend hits, never repel but flow, give it a try. Even though on-demand services marketplace industry acquired a stable position in the global market, it has a lot more to go. Especially in terms of more convenience, efficiency, etc., one must rely on edible technologies to solve the issue. However, as living in a technology era, one must update the platform on a regular basis. This helps to stay upgraded, making it possible to stay ahead of the curve.
And if you are an entry-level service marketplace business, make sure you keep your company’s backend layered. This helps you see how information from one section affects the layers above and below.
Components of Marketplace Matters
When it is about the components, service marketplaces are tough to handle. Dealing with the individual parts of the platform are even harder. Below given the fundamental components to be included in a service marketplace.
Authentication Options - Authentication options are vital. These requests can be approved or declined by the admin. This allows the users or service providers to use the platform without interruption.
Systematized Categorization - Categorizing the listed services properly is highly admired. It allows the service seekers to easily find their requirement and thus finish their task immediately.
Payments and Invoices - This refers to the most crucial yet sensible part of any business. When it comes to money, we all panic. So, providing secure methods and gateways for flawless transactions is crucial and cannot be neglected.
Customer Behavior Monitoring - Whether it is on-demand services or any other business, tracking and monitoring the customers and their actions are important.
Ratings and Feedback - Feedback and reviews play a significant role in online ranking. Moreover, it helps businesses improve further by knowing the customer expectations and demand.
Improve Efficiency - Be Quick, Reliable and Accurate
As the technology improves, as the world becoming better, you should keep up with the pace. The only way to survive is to deliver the best version of yourself. Adopt the right technologies, take steps to enhance the efficiency, improve the quality of services, quickly deliver the services your customers need. The less time that passes between an order and its fulfillment, the happier the customer will be, the more jobs you will be able to process and the more revenue you will generate.
Speed is indeed very desirable, especially when someone is in need of urgent assistance. Apart from being quick in delivering services, one should also be fast in terms of payment. Delayed payments can restrict users, it will eventually lead to loss of potential customers.
All Set to Play Your Part in Modern-day Service Marketplace Industry?
The biggest mistake entry-level businesses will commit today is building software platforms from the scratch. Here are some of the ready-made solutions, which can be employed by any startup businesses to deploy an efficient on-demand service marketplace quickly.
Agriya - On-demand Service Booking Solution
This solution helps businesses set up a service marketplace from the get-go. Inventive features such as social media authentication, built-in templates, automated insights etc., drive more value. Moreover, the dynamic admin dashboard brings into the hands of businesses the power to control the whole process happening on the platform.
Orange Mantra- Multi-Vendor Marketplaces
Orange Mantra refers to a ready-to-deploy software script, which can be employed by startups to set up an eCommerce business store. Even if it has been introduced as a multi-vendor marketplace, it can be transformed into a service marketplace by making necessary changes. By making it user-friendly Orange Mantra has ensured simplicity in functioning as well as utmost user-interaction.
Thumbpin - Ncrypted Websites
Thumbpin is a bundled service marketplace software that enables you to get started with an effective online on demand website. Since Being open for improvements, it can also be considered as a logical choice for entry-level businesses. Moreover, it integrates many useful attributes to deliver an immersive experience for both users as well as businesses.
Today’s service marketplace market is hyper-competitive, which makes it hardly possible for anything normal to succeed. A significant amount of innovation with a clear-cut plan will keep the show running. However, despite all these competitions and hardships, the global service marketplace economy is accelerating at a rapid pace with a greater mission to serve the world’s population more effectively. With progressive technological advancements, efficient and timely upgrades, on-demand service marketplace industry will soon be able to surpass all its current limitations.
Elavarasan Siva is a startup advisor and a growth hacker who loves to help startups & businesses to improve their visibility and reach, With a passion and drive to share his hard-earned knowledge with the world, he began writing blogs and articles which continue to create an impact until today.