Marketplace businesses are becoming increasingly popular, but how are they succeeding? In this blog post, we will explore the different growth channels that marketplaces such as Uber Eats, Etsy, and Airbnb have used in order to scale their businesses. From word-of-mouth marketing to SEO and performance marketing to creative solutions from restaurant owners, sellers, and creators – we’ll look at the strategies these successful companies have employed.
Word of Mouth – The Most Important Growth Channel
Word of mouth marketing is one of the most powerful strategies for marketplace businesses. This type of advertising happens when existing customers recommend a product or service to their friends or family members. Companies like Uber Eats use this strategy all the time by offering incentives such as discounts, referral codes, and cashback rewards when customers share their experiences with others. This type of advertising is cost-effective and has been proven to be extremely effective in growing a business quickly.
Supplying Directly Drives Demand
Another great growth channel for marketplace businesses is understanding the dynamics between supply and demand. Companies like Airbnb know that if they can secure more supply (i.e., hosts) then more people will be interested in using their services due to increased availability and variety. They often employ tactics such as offering incentives for hosts to join the platform or creating special campaigns that highlight certain neighbourhoods or areas where they need additional supply.
SEO and Performance Marketing – Vital Early Demand Drivers
Search Engine Optimization (SEO) and Performance Marketing are two other vital growth channels for marketplace businesses. These strategies involve optimizing your website so that it ranks higher in search engine results pages (SERPs). Additionally, performance marketing involves using data-driven campaigns such as pay-per-click (PPC) ads on Google Ads or Facebook Ads to target potential customers who may want your product or service. Companies like Etsy have successfully utilized these strategies in order to increase their visibility online and reach more customers with ease.
Creative Solutions from Restaurant Owners, Sellers, and Creators Helped Drive Demand for Marketplaces
Creative solutions from restaurant owners, sellers, and creators can help drive demand for marketplaces too! Restaurants can offer special discounts or loyalty programs through mobile apps like Grubhub in order to encourage customers to order food through them instead of using third-party delivery services like DoorDash. Furthermore, sellers can promote their products on Instagram or Twitter while creators can utilize YouTube videos as a way to showcase their creations in an engaging way that drives interest amongst potential buyers/sellers on websites such as Etsy or Amazon Handmade.
Finally, Hacking Ad Platforms as a Way to Increase Onboarding & Overall Growth For Marketplaces
Hacking ad platforms is another great growth channel for marketplace businesses because it allows them to quickly onboard new users without having to spend too much money upfront on marketing costs. Companies like Uber Eats have used this strategy by targeting people who live near restaurants already listed on the platform with ads offering discounts if they sign up for an account within a certain period of time. This type of targeted approach helps draw attention towards the company’s services while also increasing onboarding rates by providing incentives for people who might not otherwise consider signing up for an account with them otherwise!
Conclusion:
Marketplace businesses are relying on various growth channels in order to succeed in today’s competitive environment. From word-of-mouth marketing techniques like referral codes & cashback rewards; supplying directly which increases demand; utilizing SEO & performance marketing; creating creative solutions from restaurant owners/sellers/creators; & hacking ad platforms – there are many different strategies available that companies can use in order to grow quickly & effectively! It’s important for project founders & CEOs understand which strategies will work best for them depending on their target audience & goals so that they can make sure they’re setting themselves up for success!
