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Why Edenred's Business Model is so successful?

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Edenred’s Company Overview


Edenred is a leading global digital platform for services and payments that aims to enhance the everyday life of individuals and improve the efficiency of organizations. The company, headquartered in Malakoff, France, operates in 46 countries and serves over 50 million users. Edenred offers a wide range of solutions for employee benefits, fleet and mobility solutions, and corporate payments. Its solutions are designed to foster loyalty, motivate employees, and manage expense claims more efficiently. The company is committed to digital innovation, with more than 80% of its business volume managed electronically. Edenred's business model is centered on the provision of specialized digital solutions to businesses, public institutions, and individual users. The company offers a variety of products and services such as meal vouchers, fuel cards, corporate payment solutions, and incentive and reward programs. Edenred's solutions help businesses manage their employee benefits, expenses, and incentive programs more efficiently, enabling them to focus on their core activities. The company earns revenue by charging service fees on the solutions provided. As for its revenue model, Edenred primarily generates income through transaction fees from the services it provides. The company charges businesses a commission for each transaction made using their digital solutions, like meal vouchers or fuel cards. Additionally, Edenred earns interest on the funds it holds on behalf of its clients before they are redeemed for services. The company also generates revenue through subscription fees for some of its digital platforms and services. This diverse revenue stream allows Edenred to maintain steady growth and profitability.

https://www.edenred.es/en/

Country: France

Foundations date: 1962

Type: Public

Sector: Consumer Services

Categories: Professional Services


Edenred’s Customer Needs


Social impact:

Life changing: motivation, affiliation/belonging

Emotional: rewards me, provides access, wellness

Functional: simplifies, integrates, connects, reduces cost, informs


Edenred’s Related Competitors



Edenred’s Business Operations


Affiliation:

Commissions are used in the affiliate revenue model example. Essentially, you resell goods from other merchants or businesses on your website or in your physical store. You are then compensated for referring new consumers to the company offering the goods or services. Affiliates often use a pay-per-sale or pay-per-display model. As a result, the business can access a more diversified prospective client base without extra active sales or marketing efforts. Affiliate marketing is a popular internet business strategy with significant potential for growth. When a client purchases via a referral link, the affiliate gets a portion of the transaction's cost.

Corporate renaissance:

Improving management and performance for companies of all sizes, industries, and globally via creative solutions. Alternate Capital Raising Platform is a novel method of obtaining money that connects the prospective buyer with available capital sources such as venture capital funds, angel investors, and others.

Credits:

A credit arrangement is when a consumer purchases items on credit (without paying cash) and spends the provider later. Typically, trade credit is extended for a certain number of days after the products are delivered. These credits may be deducted from one's tax liability.

Cross-selling:

Cross-selling is a business strategy in which additional services or goods are offered to the primary offering to attract new consumers and retain existing ones. Numerous businesses are increasingly diversifying their product lines with items that have little resemblance to their primary offerings. Walmart is one such example; they used to offer everything but food. They want their stores to function as one-stop shops. Thus, companies mitigate their reliance on particular items and increase overall sustainability by providing other goods and services.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Channel aggregation:

Consolidating numerous distribution routes into one to achieve greater economic efficiency. A business model for internet commerce in which a company (that does not manufacture or warehouse any item) gathers (aggregates) information about products and services from many competing sources and displays it on its website. The firm's strength is in its power to create an 'environment' that attracts users to its website and develop a system that facilitates pricing and specification matching.

Discount club:

The discount club concept is built on perpetual high-discount deals utilized as a continual marketing plan or a brief period (usually one day). This might be seen as a reduction in the face value of an invoice prepared in advance of its payments in the medium or long term.

Ecosystem:

A business ecosystem is a collection of related entities ? suppliers, distributors, customers, rivals, and government agencies ? collaborating and providing a particular product or service. The concept is that each entity in the ecosystem influences and is impacted by the others, resulting in an ever-changing connection. Therefore, each entity must be adaptive and flexible to live, much like a biological ecosystem. These connections are often backed by a shared technical platform and are based on the flow of information, resources, and artifacts in the software ecosystem.

Experience:

Disrupts by offering a better understanding that customers are willing to pay for. Experience companies that have progressed may begin charging for the value of the transformation that an experience provides. An experienced company charges for the feelings consumers get as a result of their interaction with it.

Group buying:

Group purchasing, also referred to as collective buying, provides goods and services at substantially discounted rates in exchange for a minimum number of customers. Typically, these websites offer a discount of the day, which becomes active after a certain amount of individuals agree to purchase the goods or service. In addition, numerous group purchasing sites operate by arranging discounts with local businesses and increasing foot traffic in return for lower pricing.

Micropayment:

Micropayments are financial transactions involving a tiny amount of money that is frequently conducted online. While micropayments were initially intended to apply minimal amounts of money, practical systems allowing less than one dollar transactions have met with little success. One impediment to the development of micropayment systems has been the need to keep transaction costs low, which is impracticable when transferring such tiny amounts, even if the transaction charge is just a few cents.

Product innovation:

Product innovation is the process of developing and introducing a new or better version of an existing product or service. This is a broader definition of innovation than the generally recognized definition, which includes creating new goods that are considered innovative in this context. For example, Apple launched a succession of successful new products and services in 2001?the iPod, the iTunes online music service, and the iPhone?which catapulted the firm to the top of its industry.

Referral:

Referral marketing is a technique for acquiring new consumers by advertising goods or services through recommendations or ordinary word of mouth. While these recommendations often occur spontaneously, companies may influence this via the use of suitable tactics. Referral marketing is a technique for increasing referrals through word of mouth, arguably the oldest and most trusted kind of marketing. This may be done by incentivizing and rewarding consumers. A diverse range of other contacts to suggest goods and services from consumer and business-to-business companies, both online and offline.

Reverse engineering:

It is a legally sanctioned technique of duplicating a technology in which, rather than beginning from scratch, one starts with an existing product and works backward to determine how it works. Once the product's basic principle or core idea is established, the next stage is to replicate the same outcomes using other methods to prevent (legally prohibited) patent infringement. The cost of manufacturing is significantly lowered.

Software as a Service (SaaS):

Software as a Service (SaaS) is a paradigm for licensing and delivering subscription-based and centrally hosted software. Occasionally, the term on-demand software is used. SaaS is usually accessible through a web browser via a thin client. SaaS has established itself as the de facto delivery mechanism for a large number of commercial apps. SaaS has been integrated into virtually every major enterprise Software company's strategy.

Solution provider:

A solution provider consolidates all goods and services in a particular domain into a single point of contact. As a result, the client is supplied with a unique know-how to improve efficiency and performance. As a Solution Provider, a business may avoid revenue loss by broadening the scope of the service it offers, which adds value to the product. Additionally, close client interaction enables a better understanding of the customer's habits and requirements, enhancing goods and services.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Two-sided market:

Two-sided marketplaces, also called two-sided networks, are commercial platforms featuring two different user groups that mutually profit from the web. A multi-sided platform is an organization that generates value mainly via the facilitation of direct contacts between two (or more) distinct kinds of connected consumers (MSP). A two-sided market enables interactions between many interdependent consumer groups. The platform's value grows as more groups or individual members of each group use it. For example, eBay is a marketplace that links buyers and sellers. Google connects advertising and searchers. Social media platforms such as Twitter and Facebook are also bidirectional, linking consumers and marketers.

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