liquidity

How Modern Marketplaces like Uber and Airbnb build trust to achieve liquidity

Introduction

Create a managed environment

Invest in your interface

Provide social proof

Introduction

In the modern marketing era, a correct strategy may take you from rags to riches. Similarly, one wrong step may lead to the collapse of your company. There are uncountable registered businesses throughout the globe still only a handful of them pave their way to soaring heights. You need to make a strategy very carefully and have to be patient after its correct execution.

In 2009, Airbnb was on the verge of a shutdown. Its revenue was merely 200 dollars a week. We are well aware of its achievements today. What did it do to deserve that trust and position? The success graphs of Etsy and Uber followed the same trends.

Trust lays the foundation of a company. The more trust your customers will have in you, the more frequently they will connect with you. The success of a venture is directly proportional to its ability to gain and maintain the trust of its customers.

Create a managed environment

For quick and ensured success, a start-up must try to attain liquidity ASAP. It strengthens the base of a start-up and gives a boost to sales and income.

You can adopt the following strategies to attain liquidity:

  • Actionable Rating Systems

There should be a two-way rating and review system, i.e., for both the service providers and consumers. For example, Uber, Flywheel, and Ola ask both drivers and passengers to rate their experiences. It helps them to identify and improve their flaws effectively. It takes into account the inconvenience faced by both the driver and passenger and then takes appropriate actions. Thus, it keeps improving and updating itself. At the same time, good ratings attract more customers and enhance their trust in the service providers.

  • Carefully Curated Content

These days, people already have a rather hectic schedule. They don’t have time and patience for questionable content. For this, you need to keep updating and reviewing your content and filter out the content that’s not up to the mark. Airbnb again sets a perfect example here. It always features its best apartments and eliminates the shady ones from the list from time to time.

  • A Human System that Learns like a Machine

A company can neither work without software nor humans. Consumers usually expect quick and quality services (much like a machine), but at the same time, they expect that the company cares about their opinions and issues. Thus, it becomes a challenge to meet the expectations of your customers perfectly.

  • Focus on Supply

While the buyers are used to ordering commodities online, fewer people are well acquainted with shipping and carrying services. Thus, it becomes necessary to devise an easy and convenient system for the suppliers and train them well. You must also ask for their valuable feedbacks and communicate with them from time to time. According to a survey, this strategy can improve the overall performance of the supplier chain to over 70%.

Invest in your Interface

There are three magic areas where start-ups should concentrate more with better investments for desired results:

  • The Mobile Imperative

Mobile technology has miraculous potential to add value and enhance user experience. Multi-purpose mobile apps can effectively reduce the workload on participants and are much easier to use. A well-designed app can connect you to both suppliers and consumers at the same time. It would save your time and energy.

For example, delivery service “Postmates” made the right decision to invest in a mobile app that enabled the delivery people to access the exact delivery location through an easy-to-read map. It also allowed the users to text and contact suppliers anytime. It has improved the user experience and established trust among its consumers.

  • Frictionless Payment

It is beneficial for the buyers because it guarantees them a certain amount and avoids bargaining beyond certain limits. Online payments are fully encrypted and have gained enough trust and popularity among users. Amazon made over 2.4 billion dollars in a year after introducing the one-click payment facility.

  • First impression

“The first impression is the last impression” Snappy, attractive, and brief introductions are vital because they create the first impact on the mind of users. Simple yet eye-catchy illustrations attract more and more users towards a commodity or service.

marketplace

Provide Social Proof

Promoting that many other people are using and loving your product is a simple yet proven way to attract new buyers. Don’t be shy to flaunt your achievements and trustworthiness a little. The promotion through a social proof is like a relatively untapped goldmine whose worthiness never decreases. Even if your business is relatively new with fewer customers, even a few influential testimonials and positive quotes can give miraculous results.

For example, Airbnb uses Facebook data to expand their connections to their users’ friends and acquaintances.

Social media can act as a game-changer here. Peoples’ pictures as social proof can upgrade your marketing to the next level. It would not only attract buyers. By showing the success stories of your suppliers, you may attract more sellers to your platform.

In this way, the leading marketers gain liquidity by building trust and strengthening relations.