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Top Three Things To Know When Marketing A Marketplace

Forbes Communications Council
POST WRITTEN BY
Jennifer Shernoff

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Uber and Airbnb are two of the most popular examples of how technology has disrupted entire industries, and for good reason. They created a new kind of marketplace, from supply to generating demand. Today, we take their success for granted, but success was anything but guaranteed. They had to convince consumers to stay or ride with a stranger through a mobile app and convince suppliers that hosting or driving is safe and lucrative.

What did they do right? How do you leverage this model for other industries -- in professional services, for example? Here are a few key elements to keep in mind:

Clarify the value proposition for each audience -- and go beyond the benefits.

It might seem perfectly obvious to you and your colleagues why someone should want to provide services for your marketplace or why someone would want to use those services. But building a solid supplier and consumer base requires a clear value proposition for each audience. And it must go beyond what the benefits are for each audience (“Earn extra money by hosting guests when it’s convenient for you!” or “Stay in a cozy, local home for less!”). It also has to include the reason for people to trust your marketplace.

How did Airbnb build trust? Today’s technology made some things turnkey, like having a secure payment system. But it was equally important to have a way to promote word of mouth with a review and rating system that applied to hosts and to guests. If John Doe is a guest who held a raging party that resulted in damage, the host can let other hosts know that. If an amazing host goes the extra mile, their guests can rave about them. Crowd-sourcing ratings is a great way to build the element of trust into your value proposition.

Now your value propositions look like more like this:

Supplier: “Earn extra money by hosting top-rated guests when it’s convenient for you.”

Consumer: “Stay in a cozy, local home for less with a highly rated host.”

Find people where they are -- and where they are may surprise you.

Finding and reaching your target audience where they are spending their time is, at this point, age-old marketing advice, but there is something new to say about it when it comes to marketing a marketplace. Today, when so many suppliers -- like Uber drivers and Airbnb hosts -- are literally your neighbors, your consumer-facing marketing can and does automatically work double duty. This holds true with professional services too, thanks to the reach of the internet.

For example, instead of targeting doctors, lawyers, financial advisors or others in professional services only through their professional groups and industry associations, use the same performance marketing and social media tactics that you use on the consumer side. Doctors and lawyers use Amazon to shop. They use Facebook, too. You can personalize data on consumer use, for example, to build trust and encourage them to join your marketplace. Simply using sparklers like “over 10 million people get help on our site every month” can accomplish this.

Professional groups and industry associations are still important for the supply side, especially because so many professional service industries are tightly regulated. Make sure potential suppliers see your brand as a consumer too -- it builds trust and lets them know that you are investing in the marketing that will ultimately bring them more clients.

Activate your audience with compelling data.

Today, we have an extraordinary amount of data. Most online businesses capture information about consumers and suppliers fairly seamlessly, from demographics to clicks to purchases. But is your company using data in a compelling way that helps close sales for both sides of your marketplace? If you aren’t using data to personalize your marketing, you’re missing an opportunity.

For example, if you’re running an Etsy-like business, you might send an email that highlights one searched item from each customer and offers them similar items by other vendors. If you’re connecting financial advisors to potential clients, you might highlight how many people viewed their information on your site and encourage them to advertise with you to bring in more views -- and more clients.

By marketing to your consumers and suppliers in meaningful ways, you’ll create a flywheel that will lead to a successful, self-sustaining marketplace.

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