A Guide for Crowd Companies Members to Aid in Program Development Around New Business Models, Including:

Brand as a Service, Marketplace Model, and Enabling a Platform

Jeremiah Owyang and Jaimy SzymanskiPREVIEW| April 2016

Collaborative Economy Use Case Playbook

Collaborative Economy: Value Chain

Each Business Model Offers Multiple Use Cases for Collaborative Economy Programs

Brand as a Service• On-demand delivery • Subscription model• Rental model• On-demand services

Marketplace Model• Used goods marketplace• Service provider network

Provide a Platform• Crowdfunding • Co-innovation of ideas• Makers’ partner• Crowd-based supply chain• Crowd-based marketing• Crowd-based customer care

Supplemental• AdvertisingEmerging: Autonomous World

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Use cases for program deployment “Brand as a Service” Playbook

“Brand as a Service” Use Cases• On-Demand Delivery: On-demand delivery allows customers to order physical goods for delivery to

their location immediately (from less than an hour to same-day, depending on product), rather than them physically coming to your business.

• Subscription Model: Customers commit to a recurring subscription (weekly, monthly, annually) to receive goods from companies, many of which are seasonal or trend based. May overlap with rental model, depending on revenue structure.

• Rental Model: With this model, companies can sell one durable good, multiple times, through renting it out to customers. The real value comes with creating an experience around the rental though, offering complimentary services, coverage, and perks - essentially creating a full-service solution model.

• On-Demand Services: On-demand services allow customers to order services for use at their location in the near future, rather than them physically coming to your business. May overlap with Marketplace Model (service provider network) and Brand as a Platform (crowd-based customer care).

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Descriptions

Brand as a Service Business Model On-Demand Delivery

Definition On-demand delivery allows customers to order physical goods for delivery to their location immediately (from less than an hour to same-day, depending on product), rather than them physically coming to your business.

Purpose or Situation This model is crowd-enabled and works well in retail, food, and CPG.

Resources Required Company pays for deliveries made by vendor. Ecommerce platform that ties into inventory system. In some use cases, a native brand application will be required, where in others brands may become partners with vendors and offer their products for delivery through third-party apps.

Vendors Instacart, UberRUSH, Postmates, Door Dash

Measurement • On-demand delivery sales and in-store sales• On-demand customer satisfaction and in-store CSAT• Delivery times• Average delivery order• Lifetime customer value• Repeat customers• Advocacy metrics• Share of wallet on on-demand deliveries vs. in-store spend

Brand as a Service: On-Demand Delivery

Credits: Master & Dynamic; Whole Foods 7

Implementation Process

1. Align business development and marketing internally around the benefits and opportunities of on-demand delivery. Build a strong business case with shared KPIs and plans for pilots to learn and grow. Include input from e-commerce, as well as operating and purchasing teams, as their integration will be critical at the store level to ensure program success. Consider a “gains sharing” incentive that directly rewards stores and their employees for increased on-demand sales.

2. Choose the right vendor for your needs. Some vendors will directly integrate into your inventory and ticketing system to fulfill orders, while others require more manual input to execute. Depending on your size and budget, explore multiple vendors and run pilots to determine feasibility.

3. Look for areas to open up communications between your brand and the vendor, not just push the vendor to make all the cost reductions.

4. Consider technical integrations needed to ensure prices shown to guests onsite or in partner apps are inline with actual charges. Technology at the point-of-service (POS) system will also be required to reconcile vendor invoices. These processes typically use a tracking code at checkout that can be used in auditing.

Credits: Master & Dynamic; Whole Foods 8

Brand as a Service: On-Demand Delivery

Interested in the full Brand as a Service playbook? Contact Jeremiah@CrowdCompanies.com to learn more about

becoming a Crowd Companies member!