The whole operation definitely captures attention. It may be a good way to communicate with the public about the brand and its cool, innovative spirit, but is this a viable business model?
The obvious business model for this app feels like being affiliation, whereby online merchants will pay ASAP54 a fee for business the app sends their way, but there is also strong potential for that app actually becoming a tool of trend-setters and influencers in fashion, interior design and styling.
Dropbox started sending out emails to its users with a special offer granting 48 GB of storage free for two years. That feels like a killer approach to convert non-paying users to subscriber status because when you have all those gigs available online you will be tempted to keep them there. If conversion does not reach their target levels they still have the options of: (a) extending the free period, (b) lowering the entry level subscription, (c) offering a special discount for a period of time to new subscribers.
- the alignment of internal resources to the new model
- communication with the market
- transition to the new model in terms of customer retention, service continuity and discontinuity, operational interfaces with established ecosystems
When we are dealing with such transitions in larger organizations the pivot is less of a pivot and more of a tectonic shift with a completely different magnitude of challenge when it comes to managing change, training people, hiring, firing, reorganizing processes, changing tools and methods... etc.
In this post, you'll find a good presentation about pivot, while in future posts we'll give you:
- an example of a botched pivot move at GetGlue, now tvtag
- an account from the field in an established company that needed to re-invent itself