Aspects of Digital Revenue Models

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The first model that is necessary to discuss in regards to promoting the usage of highly-involved products is the on-demand approach. It implies that customers desire to receive certain commodities or services immediately and without delay (Taylor, 2018). For instance, Tesla recently cooperated with the Luxe company to deliver parking and charging services for its drivers (Luxe, no date). However, although this model can provide certain advantages over the competitors, there are some problems that the companies should solve. First of all, businesses should ensure that their websites or mobile applications are constantly available and are free from technical issues. Secondly, customers waiting-time-sensitiveness significantly increases the costs of delays and mistakes for the companies as buyers may never use their service again.

Another digital model that sellers of high-involvement products can use is revenue from sponsorship of site sections. It signifies that certain agents or organizations pay or provide equal services to other companies in exchange for website advertising (Chaffey and Smith, 2017). For example, Zillow  a real estate firm  integrates various services that can be useful for those who decide to purchase a property, such as real estate agents and photographers or mortgage providers (Zillow, no date). This approach may help the businesses consolidate expertise and, thus, enhance user experience and satisfaction greatly. Yet, the company also bears the reputation risks as any unscrupulous behavior of a partner would be linked directly to the advertiser.

Finally, the last but not least model is email marketing based on the information of the subscribers. Although such an approach is not associated with direct revenues as other models, the research found that, on average, one dollar spent on email development and distribution results in $28.5 additional profit (Hartemo, 2016). For that reason, such companies as Ford actively engages in promoting their product through the channel mentioned above. However, as the number of companies that use the same strategies has increased significantly during recent years, the same has happened with the number of spam messages that customers receive. For this reason, not engaging emails can lead to customer irritation and dissatisfaction instead of attraction.

Reference List

Chaffey, D., and Smith, P. R. (2017) Digital marketing excellence: planning, optimizing and integrating online marketing. London: Routledge.

Hartemo, M. (2016) Email marketing in the era of the empowered consumer, Journal of Research in Interactive Marketing, 10(3), pp. 212-230. doi: 10.1108/JRIM-06-2015-0040

Luxe (no date) Luxe & Tesla. Web.

Taylor, T. A. (2018) On-demand service platforms, Manufacturing & Service Operations Management, 20(4), pp. 704-720. doi: 10.1287/msom.2017.0678

Zillow (no date) Change starts here. 

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