What is a Heavily Managed Marketplace?
Heavily managed marketplaces have emerged as a business system in recent years because the experience they offer to customers radically differs from anything on the market. TechCrunch gives a breakdown of how a heavily managed marketplace works. Essentially, heavily managed marketplaces add new value that has been missing from the traditional customer experience and sell this value to their customers. They facilitate transactions by participating in the delivery of the transactions to consumers in an innovative and meaningful way. However, anytime a business adds value to an industry, additional risk also becomes part of the equation. Risk is inherent to heavily managed marketplaces because money must go out in order to make consumers aware of how the value of the new service makes their life more convenient. Businesses using a heavily managed marketplace model know that by taking on this risk, they have the ability to deliver a better service to consumers and, eventually, can justify their take rate because of the success of the company. In a heavily managed marketplace, trust is built through the central brand, and not the peers/consumers on either end. By trusting the brand, people at both ends of the transaction can feel better about the product they will receive. Any sort of friction that may occur between the supply side and the demand side is also mitigated because of the management from this system. This allows for smooth transactions to occur by making complex tasks, such as selling a home or hiring a marketing team, simple.
Image from TechCrunch
The Benefits of a Heavily Managed Marketplace
According to Casey Winters, there are many benefits to a heavily managed marketplace that enhance experience on the supply and demand side that many other systems, such as a light managed marketplace or a vertically integrated system cannot offer. Heavily managed marketplaces place an emphasis on building trust and quality. To ensure a top-quality product, they use a proactive management style. This means that heavily managed marketplaces constantly look for new ways to innovate to keep the product fresh and user friendly. The name of the company also signals quality demand is created for the branding of the marketplace because of the quality and innovation users associate it with.
Other systems may also make users jump through hoops to get their money back if a service is not performed. Some may be more friendly to the demand side, others to the supply side. Some systems do not offer a refund policy. A heavily managed marketplace is the only system that offers a customer guaranteed refund if a service is not performed.
A heavily managed marketplace understands the need to work with customers and, unlike other systems, performs heavy customer service on both the supply and demand side. By performing heavy customer service on both ends, a heavily managed marketplace ensures that needs on both ends are taken care of and met throughout the user experience.
Finally, the demand value proposition from heavily managed marketplaces and other systems is built around discovery, efficiency, and trust. However, what sets heavily managed marketplaces apart is the supervision applied to them. This supervision allows those on the supply side and demand side to feel at ease while using the service because assistance will always be available to them.
What are some examples of a Heavily Managed Marketplace?
Image from Casey Accidental
Some of the most successful companies in the world run a heavily managed marketplace system. Uber became one of the most well known heavily managed marketplace over the last decade. Uber put together a network of freelancer drivers to help those who use the service safely get from point A to point B, and take the hassle out of hailing a cab. All drivers register with the company and are rated by users of Uber. Uber manages their marketplace by setting a price point that they believe is both fair to customers and gives drivers a decent wage for their trip. Uber can also track drivers and manage their ratings. If a driver’s rating falls too low, Uber may not match them with as many users in an attempt to maximize the user experience and build a positive relationship.
Another example is the largest company in the world, Amazon. Amazon allows sellers to use their service to sell directly to them or their user base. Amazon added the value of being a one stop destination for all of a user’s shopping needs and grew from there. It is managed in a way similar to Uber, where it will delist some sellers if their rating falls too low or continuous complaints are made against them.
How 150birds works as Heavily Managed Marketplace
150birds, which has been called the Uber for marketing services, fits into both the supply and demand side of a heavily managed marketplace model. On the supply side, we provide consistent, long-term work and high pay which can become the equivalent of a full-time job while retaining the independence of being a freelancer. On the demand side, we understand users’ needs and translate them into a marketing plan while recruiting and managing the ideal team of specialists to ensure optimal service delivery.
The 150birds platform adds value to the user experience as well. 150birds builds the marketing team the user needs, and allows the user to have constant communication with the team, direct the flow of their marketing plan, and scale the team to fit their current needs, all from one platform. 150 also offers unlimited strategic guidance to help us put our users first and allow them to make the right decisions for their business at the right time.
In addition, freelancers in the 150birds network also get added value. Freelancers do not need to actively search for leads because 150birds algorithm is able to place them on teams and projects that match their skills, interests, and abilities. Contract negotiations for freelancers are also done by 150birds.
All along the way, 150birds is there to monitor the work and guide the freelancers and businesses in order to make a successful partnership. To form your own successful partnership with 150birds visit our website and sign up for a free marketing proposal today!