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Is the On Demand Economy Reducing Your Sales?

7 Dec

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The on-demand economy is growing exponentially, and the effects of this growth will be felt in every industry. If your business is not ready to change with the times, then you may suffer a loss in sales because of the new ways which business will be done. The now $57 billion on-demand economy is showing no signs of slowing down – as a matter of fact, more industries than ever are switching to an on demand model to satisfy the needs of their customers.

The Harvard Business Review reports that the on-demand economy brings in more than 22 million customers every year. The largest part of this economy is online marketplaces such as Etsy and eBay. People spend nearly $36 billion on websites like these. After this, transportation companies such as Lyft and Uber bring in around $5.6 billion in yearly spending. Third in line is grocery delivery services such as Instacart. Consumers spend almost $5 billion every year on food delivery.

A very telling statistic is that these on-demand services are being used by people of moderate incomes. Around 46% of the people who are using the on-demand economy have an income of less than $50,000. If the industry has already penetrated into the lower middle class, you can definitely expect it to expand far into the future. Savvy business owners are now looking into ways to incorporate the on-demand economy into business rather than fight or ignore it.

How exactly will the on-demand economy affect your sales if you do not jump when this new technology says jump?

First of all, if your business does not specialize in obsessively solving a universal problem for your buyers, you will have trouble making sales. On-demand means a higher degree of specialization. Not only that, but this specialization comes with a high degree of transparency, security, and convenience in the transaction. As on-demand expands into more industries, it will be virtually impossible to find a service that cannot be rendered immediately with a few clicks from a mobile phone or laptop.

Secondly, there will be an increase in the number of single service entrepreneurs. The on-demand economy is giving individuals the ability to scale to the level of a B2B company quickly. It is now quite possible for a single person with the right technology on his side to function just as well as a team of human beings. The customer, of course, does not care who is rendering the service as long as it is done correctly. These entrepreneurs are also highly skilled in very precise areas. If your business is in any way general, you will need to shore up your most profitable niche in order to compete with these niche ninjas.

The increased emphasis on entrepreneurship will also make it more difficult to find top talent for your business. As more people choose to work for themselves, you will not only be competing for customers, but also for talent. Your business will need to market its culture and the benefits that come with working for you in order to attract the human capital that you will need to stay ahead.

Personalization is now the norm. If your service is equal to that of your competitors, but you are able to offer a more personalized experience, you will come out on top 10 times out of 10. However, you will need to work quickly. Companies in every industry are moving towards personalization, so shore up your audience today.

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Measure Value, Not Activity

30 Aug

Are You Measuring the Right Results?
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Open rates, click through rates (CTRs), and conversions are just a few of the metrics most B2B marketers tend to use when determining the results of their work. But are those really the best metrics for determining success?

According to new data from Forrester, not necessarily. More and more B2B marketers are now struggling to tie these results to revenue. The truth is that while the metrics described above do a good job in a vacuum of helping marketers determine whether their marketing is working, they don’t necessarily shed light on whether or not the marketing efforts are generating real dollars for the business as a whole.

Increasingly, it’s not just CMOs who are looking at marketing results, it’s the CEOs. They want to see a direct correlation between marketing spend and sales generation. If the numbers don’t work out, then the marketing department or creative agency might not work out either.

Despite the demand for revenue-based results looming above them, B2B marketers are still struggling to deliver these types of results. So what is complicating their efforts? According to the article, there are several main challenges:

  •  Internal data is difficult to collect, connect, and analyze given the silos that exist in many workplaces.
  • Too much data! Marketers have access to more than ever before, and sometimes it is difficult to cut through the clutter.
  • Marketers aren’t always “numbers people.” Think of the best ones you know—they’re usually creative types who may not have developed the analytical skills necessary to excel—no pun intended.
    Marketing is a subjective field, but by looking at the right numbers and presenting them to the right people, B2B marketers can convert numbers into usable information that can drive real results for the business. (For some fabulous tips about presenting results to others, read this blog by an account service professional at ER Marketing, Matt Bartlett.)

Testing subject lines and measuring open rates and CTRs is great, but only insofar as it improves your approach to your marketing goals. If it helps you fine tune your approach, all the better. To prove your worth as a B2B marketer, you need to start measuring the value of what you do, not just the activity.

To read the full article about the Forrester findings, click here.

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The Housing Economy Experiences Gradual Growth

2 Aug

Harvard’s Joint Center for Housing Study Releases Important Data

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With numerous housing reports coming out each month, many have debated what these new economic performance measurements will mean for the future of housing rates and for the building industry. According to Harvard’s The State of the Nation’s Housing 2016 report, new home sales are strengthening with a 6.39% increase to 5.3 million. Although these numbers may indicate that the housing economy is not back to where it once was, it does show that there is substantial improvement from recent years.

Major report findings:

  • Multifamily starts rose 11.8% to 397,300, the highest in 27 years. Single-family starts were also up, rising 10.5% to 715,000.
  • Sales of both new and existing homes are up. The existing homes inventory remains tight with a supply of 4.8 months.
  • The inventories of for-sale homes in the low and middle price tiers dropped 9% between 2014 and 2015, contributing to a total decline of 38% between 2010 and 2015.
  • The median price of existing homes rose 6.6% to $222,400. Rising home prices have contributed to a reduction in the number of homeowners with negative equity.

However, other issues have risen, specifically the cost burden for renters. According to the report, 36.4% of households in 2015 opted to rent, which is the highest numbers seen since the late 1960s. This stems from low-income rates, as well as millennials who still are deeply in debt with school. Many millennials say that they envision themselves purchasing a home of their own one day, but due to financial troubles do not see themselves buying a home in the near future.

The report also shows that US housing starts have risen more than excepted in June due to construction activity. Despite the rise in housing starts, data points show that there will be a leaner second quarter, especially with it being an election year. While we are still far away from a boom period in housing, the latest housing starts from Harvard’s Joint Center for Housing Study shows that we are on a gradual recovery path.

Key Takeaways:

  • Americans remain optimistic toward homeownership
  • Household growth is on the rise
  • Rental housing remains in high demand
  • New construction of single-family homes is on the rise

While the numbers show a gradual recovery, there’s still a lot of situations in which the housing economy may not reach the housing peak that it once was. Although, with those numbers being as unstable as they were, it’s possible that they may not be such a bad thing.

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