Ever since Uber launched in 2010, it has grown both in popularity and in revenue with their profit and business challenges in constant speculation. In February 2015, Wall Street Journal reported that Uber recently told investors it forecasts net revenue, or the amount it keeps after paying out drivers, of more than $2 billion this year. Chris Myers in May 2015 provided great insight decoding the latest $50 billion valuation.
While the company is clearly flourishing now seamlessly connecting riders with drivers, it wasn’t an overnight success. Uber’s growth was the result of several brilliant business and marketing strategies. If your company is trying to expand, here are four important lessons you can learn from Uber:
Make Sure Customers are Satisfied
Before expanding your company, you must make sure it’s solving your target audience’s problems. If you can’t guarantee that your business is already on the right path, then premature growth could take you even further down the wrong path. Before launching its services in other cities, Uber ensured that it solved all of the problems that taxi users in San Francisco were experiencing.
By eliminating issues such as lack of nearby cabs, poor customer service, and drivers unwilling to accept credit cards, Uber’s satisfied first-time customers kept riding. Once they knew that their early adopters were truly happy, Uber knew it was time to pursue other cities. Ensuring customer satisfaction is a fundamental lesson from Uber’s business model.
Get Your Customers Talking
If you want to expand your company, make it easy for your satisfied customers to help spread the word! After Uber pleased its early adopters, these new supporters instantly began to tell others about this new way to ride. Then Uber began offering free first-time rides, which make it even easier for advocates to promote their company. My team at StringCan got very close with the local Uber support team in Phoenix and after visiting with us they gave each employee ride credits. Our team referred hundreds of others onto Uber due to that tactic alone, not just because they took great care of us but our team was able to early on try out Uber and all loved the service.
Once Uber users told their friends about this new company and free ride, tons of people downloaded the app. By giving their happy customers easy ways to promote their company, Uber created a growing network of passionate advocates. Word-of-mouth marketing is a powerful lesson from Uber’s business model.
Use Marketing Strategically
By choosing marketing strategies and tactics that work best for your specific audience, you can gain more brand awareness and support that is needed for successful growth. As Uber expanded from city to city, they found distinct ways to market to each unique city.
For example, when Uber launched in San Francisco, the company knew that it was important to impress this early adopter tech community. Uber took aim at those people by sponsoring tech events, providing free rides, and engaging with techs. Uber also carries out several different marketing campaigns such as delivering flowers, ice cream, and even kittens to appeal to specific audiences. In addition, Uber utilizes stunt marketing and social marketing to create hype and excitement for its company in every city. Tailoring marketing strategies to specific audiences is a crucial lesson from Uber’s business model.
Stay Local
No matter how much your company grows, don’t forget the little guys! As you can tell in their marketing, Uber makes a strong effort to appeal to cities on a local level rather than a national one. This makes the company less intimidating and much more approachable and likeable. Staying local also allows Uber to relate to their customers better and find even more ways to keep them satisfied. By always focusing on the small details while keeping the bigger picture in mind, Uber was destined for success. Maintaining a local focus while growing is a key lesson from Uber’s business model.
After Uber combined a great business idea with effective marketing strategies, it became a beloved company and national superstar. If you want to successfully grow your business, listening to your customers and carefully planning your next steps is crucial.
Uber’s ability to balance customer satisfaction, strategic marketing, and local engagement has been a cornerstone of its success. These lessons from Uber’s business model can guide your company in navigating the challenges of expansion while staying true to your core values and customer needs.
If you have any other tips for expanding businesses, please comment below!
