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Why Truecaller's Business Model is so successful?

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Truecaller’s Company Overview


Truecaller is a leading global technology company specializing in innovative communication and identity verification services. Founded in 2009 in Stockholm, Sweden, the company offers a comprehensive suite of tools that include caller identification, spam blocking, and intelligent dialer functionalities. Truecaller's mission is to make communication safer and more efficient for everyone. Their services are available on multiple platforms including Android, iOS, and the web, with a user base that spans across more than 150 countries. The company's flagship product, the Truecaller app, is a powerful tool that enables users to identify unknown calls, block spam calls and SMS, and record important calls. Truecaller's business model is primarily based on freemium and advertising. The freemium model allows users to download and use the basic features of the app for free, while premium features such as call recording, ad-free experience, and advanced spam blocking are available for a subscription fee. This approach allows Truecaller to attract a broad user base and then monetize through premium subscriptions. The company's revenue model is a combination of premium subscriptions, advertising, and partnerships. Premium subscriptions contribute a significant portion of the revenue, providing a steady stream of income. The advertising revenue comes from in-app ads targeted at non-premium users. Truecaller also partners with other businesses and telecom operators, providing them with a platform to reach a global audience, thereby generating additional revenue. This multi-pronged approach ensures a sustainable revenue model for Truecaller.

https://www.truecaller.com/

Country: Sweden

Foundations date: 2009

Type: Private

Sector: Technology

Categories: Communication


Truecaller’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access, fun/entertainment

Functional: saves time, simplifies, connects, informs, reduces effort, avoids hassles


Truecaller’s Related Competitors



Truecaller’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 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 data:

It primarily offers free services to users, stores their personal information, and acts as a platform for users to interact with one another. Additional value is generated by gathering and processing consumer data in advantageous ways for internal use or transfer to interested third parties. Revenue is produced by either directly selling the data to outsiders or by leveraging it for internal reasons, such as increasing the efficacy of advertising. Thus, innovative, sustainable Big Data business models are as prevalent and desired as they are elusive (i.e., data is the new oil).

Digital:

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

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.

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.

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.

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