The company is building a vertical digital ecosystem based on a key product. This is a product that brings the business the bulk of the income and benefits the client. For example, in the case of an airline, these are air tickets.
To build a vertical ecosystem, the company creates a chain of pre-sales and after-sales services that complement the core product. And for this you need to understand what else is important for the client when buying.
For example, an airline customer chooses a country for a holiday. He is looking for a suitable flight, planning a budget, thinking over a transfer, applying for a visa, taking a test, or simply contacting a travel company. On the day of departure, the passenger goes to the airport by taxi or private car, checks in and checks in the luggage.
The client spends money and time at every stage. But the airline may offer to do all this with them in order to simplify the customer’s journey and earn more. To do this, it launches additional services. For example, a service for searching and booking tour packages, booking a taxi by the time of arrival, and escorting at the airport. It turns out a vertical ecosystem of services, which is based on the service of selling air tickets.
Which companies can create a vertical ecosystem
The company had to be ready to scale business processes and fulfill three points:
● Have a core product.
● Know the target audience, its pains and desires. That is, to be able to build a client’s path from understanding the need to solving it.
● Have competencies and infrastructure to launch new directions. The infrastructure includes a customer base, partners and a digital platform.
Uber is an example of a vertical ecosystem
The key product of the company is a taxi. Uber is building the best digital ecosystem of urban mobility and complementing the key product with new services: from hourly taxi rental to car delivery in conjunction with a flight.
Uber teaches customers to use their services in parallel and seamlessly. For example, Uber Reserve helps to order a taxi in connection with a flight: the user can book a trip 30 days in advance. He indicates the airport from which he needs to be picked up, selects the destination, indicates the flight number and pays for the reservation. The driver waited for him upon arrival for an hour, even if the plane was delayed.
What tasks have companies solved with the help of a vertical ecosystem?
Strengthened user loyalty. A vertical digital business ecosystem builds deeper relationships with customers because its services help the customer every step of the way until the need is closed. This keeps old customers and attracts new ones. For example, since 2017, Uber’s active user base has grown by 49% per year.
Improved user experience. Vertical ecosystems are filled with services based on 3 questions: what customers need, how they think and how they behave. This creates a systematic approach to solving a problem within a single platform.
Increased average revenue per user. The duration of the cycle of work with the client increases if he chooses additional services to the main product.
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