This is a continuation of ‘4M and Netcore 2.0: A Framework for Exponential Growth’, first mentioned in ‘Mystery of the Missing Profits.’ In the fourth part, I gave a few non-tech examples of the 4M Framework and talked about products that personally allowed me to experience the ‘Wow’ factor. In this part, I will discuss problems faced by consumer-facing digital businesses and elaborate upon why Netcore must transition into a new incarnation, Netcore 2.0
Netcore Next – 1
Let’s swing back to the question I asked at the beginning of this series. How can Netcore use the 4M Framework and move beyond the commoditized world of email, SMS, and Martech automation platforms? Let’s start by looking at three key challenges consumer-facing digital businesses face:
- Boosting the Best – How to generate sales from the top 20-30% of customers as they account for most transactions.
- Reactivating the Rest – How to rebuild relationships with customers who have gone dormant as an alternative to retargeting them through Big Adtech platforms.
- Near-zero CAC for the Next – How to acquire the right new customers without breaking the bank and reducing AdWaste created by wrong acquisition and reacquisition.
Solving these problems is key to building an exponential, forever profitable growth business and creating a profits monopoly (Profipoly). This is where opportunities for Martech companies like Netcore lie. So far, Netcore has focused on helping brands communicate across channels (email, SMS, push notifications, and WhatsApp) and customer engagement (campaign management, journey orchestration, omnichannel personalization, and onsite search and recommendations).
Netcore’s revenue model has been to charge based on units of messages sent and monthly active users. In an environment where brands are increasingly conscious of their marketing spending, the budgets Netcore taps into are being reduced. Additionally, intense competition from other Martech companies has made the marketplace a red ocean.
In this context, I began thinking about the 4M Framework. What magical products can Netcore create to power the next money machine and create a moat and monopoly?
In today’s dynamic business environment, the wisdom encapsulated in Dr. Spencer Johnson’s book ‘Who Moved My Cheese’ holds greater relevance than ever. The story highlights the necessity to adapt to change rather than cling to old practices, even if they had been successful in the past.
The world is a living organism constantly evolving and adapting. Markets, consumer behavior, technologies, and competitors are in constant flux. Companies that can pivot and adapt and identify where the ‘cheese has moved’ are the ones that survive and thrive in such an environment.
This is what Netcore has done during its 25-year existence. Now, we need to do so again in a world where brands are looking for efficiency, differentiation, sustainable growth, and profitability. Netcore addresses the challenges of customer communication, engagement, and retention.
However, the next battle will be around sales growth, savings, and supersizing profits. How can Netcore be relevant for global B2C/D2C companies?
Netcore Next – 2
In the context of Netcore, what may have worked for us in the past might not necessarily guarantee future success. The rapid expansion and evolution of the Martech space, increasing consciousness of brands around marketing expenditure, and the growth of competing full-stack solutions signal a shifting cheese scenario for us. It calls for reinvention and transforming Netcore 1.0 into a reimagined and more relevant Netcore 2.0.
This new incarnation must be grounded in a clear understanding of the new realities of the marketplace. It’s no longer about the number of messages sent or active users on the platform. Instead, the emphasis must shift to demonstrate tangible value to brands.
Netcore’s revenue model must move from flat-rate charges to a performance-based model. In this new paradigm, Netcore’s success is directly tied to the success of our clients. The more incremental sales we drive or the more AdWaste we reduce, the more revenue we generate. Such a shift ties Netcore’s growth to the value we provide and differentiates us in a saturated marketplace, clearing the path for a new chapter of success and sustainable growth.
Netcore 2.0 is more than a version upgrade. It is a strategic pivot to a new way of thinking, delivering value, and growing. The ultimate goal is the creation of new ‘magical’ products that can power the next money machine, build an unassailable moat, and carve out a monopoly in the Martech space. Netcore 2.0 can achieve these objectives by focusing on utility and driving demonstrable value for brands.
Here is an excerpt from a previous piece.
“Instead of chasing customers, we needed to get customers to chase us for products that delivered value to them and change our approach from thinking about our solutions to solving customer problems. We needed to move beyond retention, engagement, and personalization, help customers grow their revenue, cut costs, supersize their profits, and create the foundation for their exponential, forever profitable growth and help customers create the best moat in their business – a profits monopoly (Profipoly).”
If we can do this, we will also become a Profipoly. The task is transformative, moving from the present version of Netcore, anchored in units, users, and our unistack, towards a Netcore powered by ubiquity, utility, and uplift.
- Ubiquity – Our initial move involves defining Netcore’s comprehensive reach – an omnipresent force that mirrors the ubiquity of the brand’s interaction with customers.
- Utility – Building on ubiquity, we infuse practicality and efficiency into the marketing process, enabling cost savings and process optimization.
- Uplift – Creating an uplift is the culmination of our efforts. A tangible boost in sales that directly and positively influences the growth and profitability of our customers and their businesses.
Netcore’s evolution involves evolving from a ‘units and users’ Martech company with a comprehensive Unistack to a ubiquitous entity that provides tangible utility and meaningful uplift. Such a transformation allows us to accelerate our customers towards their ‘Profipoly’ goals. In doing so, Netcore transcends from being a mere tool to becoming an indispensable ally in our customers’ quest to create their unique Profipolies.
How do we make this happen? What are the pioneering, magical products that can energize Netcore 2.0 and set in motion the transformative 4M journey?
Continued in Part 6