How to double your revenue in a taxi booking business with this simple yet profitable technique
Want to get double revenue from your taxi booking business? You must read this tips.
Million dollar or billion dollar companies never reveal their major source of earning. But a few business analysts peep into moneymaking companies to find out the hidden attributes of their business models they have never revealed. One such attribute, especially in the taxi booking app business, is customer segmentation. Though it is the very exhausted concept among entrepreneurs, a few of them let it fall between crack easily as they don’t know the fact that a simple practice to distribute their customers into the different groups can double their revenue. How? Let’s find out.
In this blog, we will study the customer segmentation and how this very easy practice is helping top taxi booking app providers to earn well. We will also discuss how you can also double the revenue of your taxi booking app business and how much does it cost to develop a taxi app with premium features.
What is customer segmentation?
Customer segmentation is nothing but a practice to divide customers into different groups based on their similarities, like personal characteristics, preferences, financial situation and behaviour. The process to divide customers into different groups requires a workable strategy and understanding of behavior analysis.
For example, as a taxi booking app provider, you need to identify those users who use your one particular service actively and those who use your other service once in a while.
But why it is required to do so? Why you can’t follow the ‘one-size-fits-all’ approach?
► Importance of customer segmentation
Customer segmentation is the most important attribute in the business model canvas. Any company which is successful allocates dedicated resources to identify the users and place them in different user groups to offer personalized service – the first advantage of the customer segmentation.
Following are some more advantages of customer segmentation.
► Effective marketing
Marketing requires a big budget and so, it should be effective and efficient. But without knowing the customers and their preferences, it is impossible to present your service to potential users. It is similar to driving a car in the night with headlights off!
However, customer segmentation breaks down users in different user groups, making it easier to reach to the only target audience with the service which they want. This will boost the efficiency of marketing and turnout ratio.
► New market opportunities
During the process of fitting users in various user groups, you sometimes end up finding a totally unidentified user group which is profitable but you haven’t introduced any service for them. So, If you find such a user group, you can craft a different value proposition for them and start earning from them too.
When Uber launched their services in Bangladesh, they found out a totally different user group who prefer to ride only on the motorcycle taxi due to many factors, so Uber introduced a motorcycle taxi for them.
► Premium business model
Using customer segmentation technique, companies identify groups that require premium services. All moneymaking taxi booking app providing companies work on this simple principle to double their revenue. They craft premium business models for only premium users as 20 premium users help companies to make more money than 100 economy users.
To understand the concept of the premium business model more rationally, let’s consider the Uber and its premium service.
Uber is providing Uber Go, economy service and Uber Black, a premium service. The major users of Uber’s Uber Go service are students, women, and commuters who are charged a very affordable fare. Whereas, only premium users utilize Uber’s Black premium service which is, of course, cost more. That means Uber generates more revenue per employee from premium users than Uber Go users.
In the aviation industry also, they are putting more emphasis on business class seats than economy class seats, as the money they earn from 20 business class seats compared to 20 economy class seats is very high.
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Since you now understand the importance of customer segmentation, let’s find out the different strategies you can take into account to identify the users and to place them in user groups.
► Customer segmentation methods
Customer segmentation is an easy process but only for those who choose the right method to determine common features of users and their buying habit.
You can start distributing users according to their demographics. It discloses all the important features of users like location, age, gender, life stage, and marital status. To get rid of a prolonged and tedious process, you can use Facebook and other social platforms which often have all these information of users.
Another important method is knowing their decision-making status which says a lot about their financial status and their ability to pay for your premium service or economy service. To know their decision-making status, hold personal interactions with users or conduct an online survey which blows their job title wide open.
Knowing the history of users is also a very useful method as it unfolds the future behavior of users. From the database of your company itself, you can study the usage data (how long each customer had used your one particular service) of your users.
How Coruscate helps you to double your revenue from the taxi booking app?
As we have discussed earlier, Uber is earning more from its premium service than economy service. So, if you want to follow the legacy of Uber, we, at Coruscate, accommodate a few highly skilled business and development team members who have earned expertise to craft a premium business model for your taxi booking app business and to add premium features in your taxi booking app.
With our taxi app development solution which cost you only $10k, you can get the following premium features into your taxi app.
- First of all, we integrate economy and premium services in a single app to eliminate the need for more IT resources. Users can easily select the type of service they would like to use. Moreover, all information like what users will get in each service is well documented in the app.
- If the user opts for premium service, the app shows him the all available drivers nearby with their ratings and car model. User can then select his desire driver.
- User can request the driver to wait up to 10 minutes at the pickup location.
- From the app itself, the user can even request the driver to help him with his luggage.
- User can demand to maintain a certain car temperature during the ride.
- An airport pickup is treated differently as we write a different algorithm for the airport.
To know more about premium features you will get into a taxi booking app, contact us today.
How much does it cost to develop a taxi app with premium features?
Coruscate is the top taxi app development company which has entertained many taxi app development related queries. We work in 5 simple steps – requirement check, planning and designing, front end development, back end development, testing and implementation, to deliver a next-gen taxi booking app which dominates the market quickly. We will not only develop your taxi booking app, but we will also be the strategic business partner to help you to get everything out of the taxi booking app and a robust admin panel.
With our rapid app development technology, we will deliver your taxi booking app within 45-55 business days and under $10k. Click below to get Free taxi booking app and admin panel demo.