The Power of a Specific Audience and the Business Model of Sweatcoin

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Hatched by Glasp

Jul 29, 2023

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The Power of a Specific Audience and the Business Model of Sweatcoin

In today's crowded digital landscape, it's no longer enough to simply aim for mass appeal. The concept of the "smallest viable audience" highlights the importance of focusing on a specific group of people who would truly miss your product or service if it were gone. This approach requires a deep understanding of who your target audience is and what they value. By creating a unique and valuable experience for this specific audience, you can cultivate a loyal following who will spread the word to like-minded peers.

To exemplify this idea, let's take a closer look at Sweatcoin, a company that has successfully implemented a specific audience strategy. Sweatcoin is an app that incentivizes physical activity by rewarding users with virtual coins, which can be redeemed for various offers and products. The company has raised significant funding and employs a well-defined business strategy to generate revenue.

Sweatcoin limits the number of coins users can earn per day, and offers users the option to upgrade their earning potential for a fee. This strategy effectively narrows down the number of individuals eligible for certain offers, such as marathon offers. By doing so, Sweatcoin creates a sense of exclusivity and scarcity, making these offers more desirable to its users.

The primary way Sweatcoin generates revenue is through its partner-offer strategy. Similar to Groupon, Sweatcoin partners with brands to provide exclusive offers and discounts to its users. These brands pay Sweatcoin to be featured on the app, and the partnership contracts vary depending on the brand. This model allows Sweatcoin to monetize its user base while providing added value to its audience through attractive offers.

In addition to featuring partner brands, Sweatcoin also generates revenue through in-app advertisements. However, it's worth noting that the app's continuous GPS tracking can drain the user's battery, which may impact the overall user experience. This highlights the importance of balancing monetization strategies with user satisfaction.

Now that we've explored the concept of focusing on a specific audience and the business model of Sweatcoin, let's discuss three actionable pieces of advice for businesses looking to implement a similar approach:

  • 1. Identify your smallest viable audience: Conduct thorough market research to identify a niche audience that aligns with your product or service. Understand their needs, desires, and pain points to tailor your offering specifically to them.
  • 2. Create an exceptional experience: Focus on building a great product, service, or content that brings value to your chosen audience. Strive to create a connection and delight your customers to the point where they become advocates for your brand.
  • 3. Foster strategic partnerships: Collaborate with complementary brands that resonate with your audience. By featuring partner offers, you can provide additional value to your customers while generating revenue through partnerships.

In conclusion, the power of a specific audience cannot be underestimated in today's competitive landscape. By identifying and catering to a niche group, businesses can create a loyal following that brings sustained success. The example of Sweatcoin showcases how a well-defined business strategy, focused on specific offers and partnerships, can generate revenue while providing value to its users. By applying the actionable advice mentioned above, businesses can effectively attract and retain their own smallest viable audience.

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