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Why Customers Leave Platforms — and How to Retain Them
Anna Noakes Schulze shared the article from Harvard Business Review created by Marshall Van Alstyne, Grace Gu, and David Finger:
"Companies often misunderstand the problem of users leaving their platforms. Disintermediation is a sign that your customers don’t think you are adding as much value as you think you are. Firms struggling with disintermediation can take simple steps to stop the bleeding before it’s too late — if they understand what’s really taking place. They should consider six factors: urgency, rake, risk, skill, frequency, and modularity. The solution for disintermediation is quite simple: Create more value than you take. Stop playing the role of toll-taking gatekeeper and start playing the role of value-adding partner."
Digital product passports: EU legislates circular economy
In the age of information and conscious consumerism, businesses are finding themselves at a crossroads where profitability meets responsibility. Until now, sustainable business practices have been largely optional, driven by consumer demand. Thirty-five percent of consumers of all ages view sustainability as an important factor in their product purchases. And with 73% of Gen Z consumerswilling to pay more for environmentally-friendly products, there’s been no shortage of demand.
But due to legislation and the new digital product passport requirement passed as part of the European Green Deal (EGD) last year, transparency about product sustainability will be mandatory starting in 2026.
Who Should Price a Gig?
Successful platforms must balance economic considerations and power dynamics with providers and customers as they determine who sets prices.
Arriving at Boston’s Logan International Airport after a tiring journey, Mia opened the Uber app to find a ride home. Her relief at seeing the message “Your Uber driver is arriving in 3 minutes” was short-lived because the driver canceled. In the next 30 minutes, half a dozen Uber drivers accepted her ride request, then canceled, before one eventually arrived. What was happening?
Circular Platform Professional Jobs
Peter C. Evans shared: "Linear marketplaces make up the majority of digital platforms operating worldwide. It is therefore not surprising that most platform professional job opportunities are found among platforms operating in line with this conventional economic model that largely ignores material reuse and life extension.
However, this is beginning to change. As I show below, circular platforms exist and are posting interesting and well-paying jobs. A circular platform is a digital or online ecosystem that facilitates the exchange, trade, or sharing of products, materials, or assets with a focus on promoting circular economy principles. A circular economy aims to minimize waste and resource consumption by extending the lifespan of products, promoting their reuse, repair, and recycling rather than the traditional linear model of "take, make, dispose.“ In short, circular platforms aim to leverage digital technology and platform advantages to internalize externalities as their primary business model."
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