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What collaborative economy offers to Public Relations

pr copyYou must have heard of Rent the Runway, AirBnB or Lyft? These popular conglomerates work on the concept of ‘collaborative economy’. The consistent and rapid growth of collaborative economy — also known as sharing economy — is making apparent that sharing is not just a fad; it is here to stay and it sure to find greater acceptance as a business enabler over the next decade.

Collaborative economy

Based on the model that mandate that sharing can actually change the way business is done. Marketing gurus and online PR pros define sharing economy as a fast-emerging market driven by social technologies promoting purchasing, selling and sharing of products among people. In simple words, collaborative economy focuses upon the relevance of ‘buy and share’ instead of ‘buy and sell’.

Collaborative economy pushes people to share their time instead of sharing regular day-to-day things like home, car etc. Then, how does time assume relevance in collaborative economy? Time is significant in collaborative economy as it is ‘shared’ to implement projects, ensure timely deliveries, help business enterprises etc. Thanks to collaborative economy, the crowd has taken the shape of a company and enterprising marketers have begun leveraging this growing trend.

Businesses face the risk of becoming disintermediated by clients who connect with each other. This is where collaborative economy value chain is at play as it helps enterprises rework their business models by changing their position/stance – company as a service, marketplace etc.

The world of online PR has experienced the effect of technology in many ways, encompassing marketing and client servicing. Social media plays an integral part in everything, from product development to HR operations. Many consider these social changes a natural evolution of technology that can’t be avoided within the realm of business.  This is in fact a crossroad propelling PR professionals to carefully review the different stances and then move forward.

Although PR has limited control over the product development processes or purchasing cycles, PR agencies can still help brands successfully navigate and thrive during the transition time. PR can’t be avoided as such specialists possess key skills – understanding an enterprise’s target audience/market, focusing on reputation and trust building which is equivalent to ‘currency’ in collaborative economy, using social communication tools etc. Clearly, PR consulting agencies enjoy an upper hand over the rest as it lends support to brands to re-evaluate business models in accordance with the consumers’ collaborative consumption preferences which eventually helps to cultivate new relations with audiences.

We list below a few takeaways that influence PR agencies in this new economic model.

  • buyer-seller-relationshipBuyer-seller relationship redefined by audiences

We all know that PR professionals emphasis upon developing sustainable relationships with the public. The collaborative economy framework can strengthen the clientele base, which means PR agencies have to care for more people, offer support, interact with them and respond. This new model empowers consumers as they decide the norms of transactional terms.

  • Tech-focussed entrepreneurial ventures redefining conventional business practices

New-age startups ensure use of innovation-focussed business models that are backed by advanced technology. As clients are getting accustomed to the tech-enabled environment, this will cut across domains.

This means PR professionals have a higher number of opportunities to help more businesses—startups, established companies and SMEs.

  • Consumers prefer to rely on one another instead of just enterprises

Enterprises that are socially engaged are likely to incorporate the human element in their businesses compared to MNCs that have a poor social presence. This is where PR consulting agencies are capable of helping businesses to make a successful transition. Various communication channels can be used by the PR agencies to introduce the human face behind the brand. When a brand is able to humanise, they are able to stand out amidst competition.

  • 1-1Engage in social work

From the time of its advent, social media has played a key role in the promotion of good causes/philanthropic work undertaken by businesses or individuals. The desire to help one another is assuming relevance everywhere and becoming an integral part of purchasing/selling habits. Since this new economic era demands conglomerates to partner with audiences, PR agencies can actually help to bridge this gap.

Also Read: How to choose social channels most suitable for your business

Conclusion

Is your business keen to engage or competing against the idea of collaborative economy? We would love to help you identify your niche. Just share your queries in the comment section below and our experts will be more than happy to answer your queries.

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