I think the concerns you mentioned are very valid. Regarding data, I wonder if Farfetch can support brands on its website by providing them analytical reports regarding user behavior on the platform, things like click-rate on items, browsing, etc. (the brands will only be able to see behavior around their own brand, and high-level aggregate data on other generic user behaviors). By providing these reports, Farfetch would’ve created a value-add service that will make the relationship with brands stickier and that could potentially make brands prefer this platform over other (maybe reducing brand multi-homing).
Farfetch could also use data to reduce customer multi-homing. As you mentioned, they could create a loyalty program and fuel with personalized and target product recommendations and discounts. This will also help improve the customer experience and increase retention.
Thank you for this great article.
I completely agree that disintermediation is one of the biggest problem Upwork is facing. As you mentioned, they have already changed their pricing strcuture to try to reduce disintermediation (higher fees for the first transaction -20%- and then lower for other transactions – 5%). I believe this is helpful but is not enough.
I agree that they should focus more on providing value-added services and increase the stickiness of the platform. They already started doing this – a cool example i saw was allowing clients to monitor the work of freelancers in real-time through screenshots (although it got some negative reactions). Maybe they could take a page from the book of ZBJ and partner with co-working spaces like WeWork to provide space for freelancers on its platform for a subsidized fee.
Thanks Petra – Great article!
I completely agree about the need to reduce customer acquisition costs. Maybe some sort of referral program could be helpful. For example, if a woman already got married but still referred her friend to use the platforms, they would both get some sort of discounts (e.g. for the woman that already got married, maybe a discount on frames or books for wedding pictures, or a discount on the fee for a designer to create a collage of the picture)
Another idea would be to incentivize the bride to add the bridesmaids/ friends on the platform and assign tasks to them (e.g. bachelorette party planning). Once these bridesmaids engage with the platform and notice how easy and user friendly it is, they would be more likely to use it for their own plans.
Another idea would be to add the wedding registry function on the website to raise awareness about the platform (i.e. guests would know about it).
Great post! Netflix did indeed change the media landscape.
As you mentioned, Netflix has amassed huge amounts of data on its customers. It is interesting to see how they are using this data for multiple use cases such as for content development as you mentioned, as well as for content selection (e.g. green light, etc.), next-best product recommendations, customer retention, etc. I would be interested to see how they plan to push the barriers on that front.
In addition, it would be interesting to see how they plan to incorporate other digital technologies that could be impacting media such as virtual reality and augmented reality. They have already started experimenting with these (e.g. AR app for Stranger things, VR with Black Mirror) – looking forward to see how they innovate further on that front before they get disrupted.
Great post! Very informative.
I really admire how the company manages its partnerships and acquisitions.
A clear example of this relates to the Venmo acquisition that you have mentioned. Paypal made a strategic decision to keep the brand separate given how popular the brand was and how simple and easy the interface was to use. Paypal knew that by keeping it separate it would keep the “magic” of Venmo and would not impact the engagement of users, which worked. They used the Paypal expertise and scale to help grow the platform behind the curtains. Great acquisition play!
Another partnership you mentioned is related to Cybersecurity. It is interesting to see that Paypal has been leveraging AI to try to improve its risk management practices!
Great article! I completely agree with the levers you have mentioned and your assessment of each.
Potentially, a lever you had mentioned that they can expand on more is experience. Macy can potentially leverage key digital trends to allow it to improve the customer journey, increase their engagements and reduce costs. These can include digitizing the in-store shopping experience and leveraging data analytics.
For examples on digitizing the in-store shopping experience, Macy can launch shoppable digital windows (similar to Selfridge for example) or increase engagement with smart fitting rooms (similar to Ralph Lauren for example).
Macy can also double down on its data analytics efforts to improve customer acquisition, customer service and customer retention as well as improve its product offerings (e.g. predict taste of customers) and its operations (e.g. inventory management, workforce management), among other things.