Being part of the Corporate set up, we have witnessed that those brands & retailers willing to innovate, to provide value and serving the customer's needs, outperform those that sell products at a price. Tests between Defy & PnP in RSA around "deferred Value" assisting customer's to re-fill the fridge with fruit juice for 6 months after the purchase suggest that the customer is ready for the next step.
The next step is two-fold:
- by creating a FinTech solution you convert an once-off high USD cash amount, acting as barrier of entry, into a subscription-based low USD amount payable over the pre-agreed term. The added benefit is that by default (you are entering a Finance agreement) you got to get to know the consumer. This we refer to as the "can opener"
- by knowing the consumer you can now add externalized products and services, allowing you to "earn" a fee/commission as you see fit. By way of example. The fridge buying consumer now wants a delivery, installation, an extended warranty and weekly groceries as part of their monthly subscription. This we refer to as "lego tower" as we add personalized products & services, brick by brick.
In a nutshell: Subscription Model to sign up Customer for Life. Entering a Customer life Time Value discussion ! Enhance Consumer’s Scope, Relevance & Acessibility by curating a suite of personalized & complimentary products & services Converting Engagement from Once off/ Product & Price towards an Annuity-based Relationship (Product-as-a- Service) Relentless Focus on the “Customer’s job to be done” Deployment of Platform to access ecosystem of Service providers for externalized value creation Guaranteed Future Value / Buy Back to
- lower monthly installments ( & increase affordability)
- shorten the product life cycle ( & increase market size)
- repair & refurbish at end of Finance period ( & create employment)
- Re-sell / Re-finance “previously loved” appliances (& provide access to consumers traditionally not able to use Defy
- Increase sustainable Engagement with communities (& drive circular economy)
Log in or sign up for Devpost to join the conversation.