“A business model describes how company creates, delivers and captures value”.
Generally, a business model is a framework done by the company, used to run the business profitably and productively for the long term aspect.
In this, let us see some of the business models here:
The subscription, it is generally based on offering the brand’s product/service on a payment basis (i.e., for monthly or yearly) for a specific period. This model mainly focuses on a profit-based motive for a single product which uses that for the long term by the customer. Also, customer satisfaction was important for the business to run it productively and make them use their product for a longer period. Nowadays, many companies/business sector are offering subscription-based products for the customer.
- Outcome-based model:
Generally, the outcome-based model is done by the companies for making the customer buy their products/services by paying the amount for that and getting a benefit. This model makes the company gain more profit and also gaining a good relationship with the customer.
- Sharing Economy model:
It is one of the new business model element which drafted for giving the customer by creating more value and also selling capacity for the existing product/service.
- Razor Blade Model:
The Razor Blade model is a business strategy used by the business in which they sell the core product/service for a low cost and make the customer buy the paired/dependent product for the high cost, which generate profit for the business. This model makes customer satisfaction, also make them buy their branded products more and also maintains a relationship for a longer period.
Generally, data is based on collecting information about the customer. It is the utilization of data and tries to satisfy the customer according to their needs and wants. This model makes the business to enhance the productively and also a healthy customer value.
Pay-per-use is based on paying for the product or service, which is used each time by the customer. This model depends on when the customer uses the product/service (i.e., types of products used, time and so forth). This model helps the business to gain profit, also get better feedback about the service (i.e., pricing, quality, etc.)
- Service offer:
Generally, the service offer is done by the business when the customer purchases any product (i.e, guiding, consulting for the usage of the product and so forth.)
These are some of the business models. The business model helps the business sector to achieve the goals/objectives effectively, also to generate more customer value for the business which maintains a standardized position in the market and also helps to gain more profit.