This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why Momo's Business Model is so successful?

Get all the answers


Momo’s Company Overview


Momo Inc. is a leading mobile social networking platform in China. Established in 2011 and headquartered in Beijing, the company connects people in a uniquely personalized and social way through a revolutionary mobile-based social networking platform, which incorporates social and entertainment features. Momo's services include a live video platform, value-added services, mobile marketing services, mobile games, and other mobile internet services. It has created an innovative platform where users can discover new relationships, expand their social circles, and build meaningful connections. Momo's business model is primarily based on user engagement, where it provides an interactive and user-friendly platform for its users to connect, communicate, and engage with each other. The company's platform integrates social and entertainment features, including live video, chat, and games, which are designed to facilitate interaction and engagement among users. By creating a vibrant and dynamic community, Momo is able to attract and retain a large and active user base, which is essential for its business success. In terms of its revenue model, Momo mainly generates revenue through a combination of in-app purchases, advertising, and subscription fees. The majority of its revenue comes from its live video service, where users can purchase virtual gifts for their favorite broadcasters. The company also earns revenue from advertising, where it provides targeted advertising solutions to its advertisers based on user demographics and behavior. In addition, Momo offers a premium subscription service, where users can access exclusive features and content for a fee. This diversified revenue model allows Momo to monetize its large and active user base effectively.

https://immomo.com/

Country: China

Foundations date: 2011

Type: Public

Sector: Information & Media

Categories: Internet


Momo’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, wellness, therapeutic value, fun/entertainment, attractiveness

Functional: connects, integrates, informs, variety, quality


Momo’s Related Competitors



Momo’s Business Operations


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.

Advertising:

This approach generated money by sending promotional marketing messages from other businesses to customers. When you establish a for-profit company, one of the most critical aspects of your strategy is determining how to generate income. Many companies sell either products or services or a mix of the two. However, advertisers are frequently the source of the majority of all of the revenue for online businesses and media organizations. This is referred to as an ad-based income model.

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.

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.

Freemium:

Freemium is the sum of the words free and premium and refers to a business strategy that provides both free and premium services. The freemium business model works by providing essential services for free and charging for enhanced or extra capabilities. This is a typical practice among many software firms, who offer imperative software for free with restricted functionality, and it is also a popular approach among game developers. While everyone is invited to play the game for free, extra lives and unique game features are accessible only once the player buys.

Online to Offline O2O:

Online to offline is a term (often abbreviated as O2O) used in digital marketing to refer to systems that entice customers to purchase products or services from physical companies while they are in a digital environment.

Mobile first behavior:

It is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices. The term is “mobile first,” and it is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices.

Social stakeholder:

Social responsibility will only be accurate if many managers embrace moral leadership rather than immoral leadership, organizational management, and business ethics that engage morals and values in corporate governance. In a nutshell, it addresses the concept of who or what really matters.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Subscription:

Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.