Business Model of Crown It – How CrownIt works
Before talking about the business model of Crown It , let us first discuss a bit about affiliate marketing.
Through the years we’ve seen a rise of many affiliate marketing websites / applications. These websites/mobile applications have a very simple approach – they are reputed or luring brands which generate customer traffic for themselves and divert them to their partners for which they get commission in return.
Affiliate Marketing is simple. You sell other’s product and earn via commission.
But Crownit’s Business Model is not the typical affiliate marketing business model. It is a well planned and organised online to offline business model.
Crownit is a mobile application (operating only in India) started in 2014 with a core proposition of driving users to the partner businesses/outlets (like restaurants, spas, salons) by providing them cashback whenever they upload the bill of the product/services purchased from its partners. The the cashback was used to for online shopping, movie tickets and talktime, which again were its partners
The idea was simple – Drive more sales to the partners and get more commission.
The business model of crown it has evolved over time . Besides partnering with more offline (like fashion outlets, movie theaters, events) online stores (like amazon, makemytrip) and cab aggregators like Ola and continuing its affiliate practices, the company, because of its huge database, also now deals in following services –
- Branding & Engagement
- Targeted Offers
- Sale platform
- Lead Generation
Business Model of Crown It
Crown-it’s business model is just like a coin. One side is facing the partners, while other facing the consumer.
Crown-it & Business Partners
Crown-it’s main revenue source is through commissions from the partners. Crownit is now a brand with lakhs of users using the service. Crown-it always strives to increase its partner base.
To make customers stick to the app and help crownit make more commission, crownit provide them cashback in the form of Crowns which can be used to get discounts on products and services of other partners of Crown-it, enabling it to make more money.
Crown-it & Consumers
It’s the consumers who run crown-it’s business. Hence, crown-it, just like any other business, has to keep its king happy and encourage him to use its application more.
Crown it provides –
Cashback / Crowns
The only reason people use Crownit is because they get rewarded to use the application. The cashback is credited in the form of crowns which can be used for further discounts on services/products of other partners of Crownit. These services include – Discounts on shopping outlets, discounts on online stores, mobile recharges, etc.
Crownit has started rewarding its customers in form of tickets which they can use to be a part of the weekly rush.
Crownit Weekly Rush is a weekly competition in which users become eligible to win various prizes upon matching of “Rush Tickets” which they earn as rewards by using Crownit partner services. The participants are eligible to win macbook air, watches, and other ‘vouchers’ from crownit partners hence they are more motivated to use its services to get tickets to take part in weeekly rush.
Weekly rush is tempting and hence consumers tend to spend more on crownit’s partner services to earn more tickets.
Following Paytm’s business model, Crownit has also launched its wallet. This strategy lets you to transfer your money from your bank account to Crownit wallet for fast and easy transactions. The money deposited in Crownit wallet, is deposited in an escrow bank account, which fetch them interest.
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