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Marketing in an API EnvironmentUsing API to Grow Revenue
Using APIs to Acquire New Customers-
There are two ways to acquire new customers
thanks to APIs
1. Build your own app with extensions that would be appreciated by end users
2. Serve as a platform on which various apps can be created and vended individually
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API As a Platform-
Platforms multiply value creation, facilitate the exchange of
goods, services and social currency
Walgreens offers an API for its in-store photo printing services that enables others to offer photo apps on its platform
Uber leverages Google Maps which uses an API to match drivers with passengers who need a ride
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Using APIs To Grow Revenue-
Any app you have data sitting on is a potential for using
an API
APIs allow you to streamline your
development by:
Expanding your market reach
Reacting to your customers in a quick and personalized fashion
Compiled by author from source: sagacitylab.com
Companies Gaining Revenue-
Financial effects of APIs have gained steam thanks
in part to mobile and social media technologies
Major companies that have gained revenue from APIs
SalesForce.com
Amazon
Compiled by author from source: searchmicroservices.techtarget.com
API As An Upsell Driver-
API opens an opportunity to upsell access to certain
features
Define the features that clients can consume at the beginning, allowing utilization of additional ones later
Grant free use of your API for a short time limit, and charge customers after they overrun the designated amount to encourage clients to consume your API more
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API As A Distribution Channel-
The more people that reach your
content, the more customers you’ll
get
By allowing third-party apps to
obtain your content, you’re
the possibility for them to make
easy money with you
An example of this is a website providing results obtained from a bigger merchant’s
API
The smaller companies can’t operate big data sets, the larger ones use a revenue
sharing model to distribute their content via an API
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Area’s For API Success-
Some of the most common business cases for API utilization:
Mobile enablement
Customer and partner ecosystem growth
Developing reach for content and
transactions
Powering new business models
Driving internal innovation
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Determining ROI-
Is your API going to allow you to sell into new
markets?
If so, you should calculate ROI
based on a sales growth metric
Having a full understanding of how your API is going to
serve its surrounding environment as well as your overall business model is key
Will your API allow expansion of your
internal operations,
enabling control where core functionality
resides Then ROI is derived by
calculating the overall expense-
savings
Compiled by author from source: itproportal.com
API Success Stories
Transforming the traditional business
API Expansion-
Use of APIs is expanding rapidly because it fits the business needs in the client-server world
As IoT (Internet of Things) get smarter, the use of APIs used to transact and negotiate with one another will become the norm
Today, you can remotely adjust the temperature of your room by using an app
When buying movie tickets online, an API is used to verify your card information
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Amazon Payments-
Amazon.com handles millions of web transactions
Reaches consumers via its own brand and puts transaction
power in the hands of thousands of resellers
Enable third parties to pull inventory, pricing and description information
Enable resellers to build sophisticated new niche shop fronts
Sales are tracked via affiliate links that attribute the sale and result in revenue share payments to third
parties
Other partners can embed simple product search or purchasing links in their sites
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Pay Pal 21st Century-
Pay Pal’s Direct Payment API:
Allows developers and websites to add and customize checkout
pages without redirecting clients
Known for its commitment to perform safe and simple transactions
Merchants have access to comprehensive reporting, with all the facts and figures they need to tweak their cash flow and monitor sales
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Nike-
The global sports clothing brand branched out into
wearable electronic devices
Tracking Pod
Nike +
Working to create
a robust
ecosystem of
partner
applications
around its
platform
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Netflix-
The company initially sold a service that made
watching movies convenient
Consumers could go online, select the content, and then receive it in the
mail a few days later
This method, once deemed “fast,” was really a transfer of data to your home
Now it’s archaic, in view of what Netflix API’s are capable of today
Now consumers can turn on their streaming device, click on the Netflix App and get swift access to movies via the cloud
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Rules of API-driven Commerce-
Close the value loop for partners
Ensure they have an incentive to integrate
Select and qualify partners
Particularly those who are permitted to drive transactions
Target partners that can provide reach into contexts in which your buyers expect to find you
Why you must pick the right E-commerce
platform. You need to focus on marketing and
growth:
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CONTACT US FOR THE FULL PRESENTATION:
Mediacontact USA Inc.13575 58TH Street North #160
Clearwater, Fl. 33760
T: 727 538 4112
www.mediacontactusa.com
Sources Cited:
• API As a Revenue Magnet: 5 Ways to Earn More." API2Cart - Unified Shopping Cart Data Interface. N.p., 7 Sept. 2016. Web. 17 Feb. 2017. <https://www.api2cart.com/blog/api-revenue-magnet-5-ways-earn/>.
• How Financial Software Companies are Monetizing APIs - Maxcode. (2015, January 25). Retrieved from https://www.maxcode.net/software-development/financial-software-monetizing-apis/
• Mason, Ross. "How the API Economy is Igniting a Cultural Shift in Businesses." CIO. N.p., 15 Nov. 2016. Web. 7 Feb. 2017. <http://www.cio.com/article/3140646/apis/how-the-api-economy-is-igniting-a-cultural-shift-in-businesses.html>.
• Pettey, Christy. "Welcome to the API Economy." Smarter With Gartner. N.p., 9 June 2016. Web. 31 Jan. 2017. <http://www.gartner.com/smarterwithgartner/welcome-to-the-api-economy/>.
Sources Cited:
• Popow, Ed. "Four Keys to API Business Success | ITProPortal." IT Pro Portal. N.p., 14 Oct. 2016. Web. 17 Feb. 2017. <http://www.itproportal.com/features/four-keys-to-api-business-success/>.
• Werner, Kelly. "Sagacity Lab | Digital Marketing Agency." Sagacity Lab | Digital Marketing Agency. N.p., 15 Nov. 2016. Web. 6 Feb. 2017. <http://www.sagacitylab.com/single-post/2016/11/15/APIs-marketing-strategy>.
• "What is API Economy (application Programming Interface Economy)? - Definition from WhatIs.com." SearchMicroservices. N.p., n.d. Web. 30 Jan. 2017. <http://searchmicroservices.techtarget.com/definition/API-economy-application-programming-interface-economy>.
• Willmott, Steven, and Guillaume Balas. "Winning in the API Economy: Using Software and APIs to Transform your Business, Drive Revenues, Broaden Distribution and Unleash Innovation." 3scale API Management Platform. N.p., 2013. Web. 1 Feb. 2017. <https://www.3scale.net/wp-content/uploads/2013/10/Winning-in-the-API-Economy-eBook-3scale.pdf>.
