Businessmodel of Skout

Customer Segments

Skout can be used in a variety of ways and thus attracts a range of users. The platform is widely used by singletons as a location-based dating app, as well as by tourists and travellers seeking to make connections when away from home and local members wishing to stay up to date with events in their area.

The app is also used by professional wishing to expand their business network locally and abroad.

In addition to its user base, Skout’s counts among its customers advertisers and agencies wishing to reach the Company’s audience with advertisements.

Value Propositions

Skout offers a networking platform that is location-based, enabling users to meet new people with common interests that are close by either at home or abroad.

The applications full suite of tools and services are available at no cost, while paid-for services are available at a limited cost. Skout has fully customisable search and profile settings and privacy controls.

It also purports to be security conscious, managing separate platforms for adults and for teenagers. Skout has announced that it shuts down as many as 40,000 nuisance or anti-social accounts every month in a bid to maintain the community. The platform claims to have more than 10 million individual users, making the platform an attractive opportunity for advertisers.

Channels

The Skout platform can be accessed by users via the Company’s website at www.skout.com as well as via its iOS and Google Play apps. Advertisers and partners can interact directly with Skout representatives by contacting the Company’s sales and marketing team.

Customer Relationships

The Skout platform is entirely self-service. Users are able to register to the service through their existing Google or Facebook accounts, following which they can access the full range of tools and services included in the iOS and Google play apps.

Any additional paid-for services are also available as self-service products. As a networking app,

Skout relies largely on its community to generate to generate content. The community is supported by Skout via its online FAQs, contact forms and safety tips. Skout also interacts directly with its users via social networks Facebook, Twitter, Instagram, Pinterest, Google+ and Vine, and keeps users up to date with changes and developments via its blog.

Advertisers and partners receive a more personalised services tailored to their individual needs and requirements.

Key Activities

Skout develops and maintains a location-based social networking and dating application. It manages a number of partnerships through which it organises events fro its users.

The Company also collaborates with advertising networks and agencies in providing general and location-dependent advertisements to Skout users.

Key Partners

Skout partners with a number of event organisers, tech companies and advertisers. The Company often organises social events with its partners to entertain its own users and promote the services of its partners.

In March 2016 Skout partnered with SF-Marin Food Bank to commemorate National Potato Chip Day by providing meals for 20,000 at-risk individuals. The Company has also partnered with technology company Riviera to put on a casino night for Skout users.

Key Resources

Skout’s key resources are its networking platform, its IT infrastructure, its personnel – notably its research and development teams – and its Community.

The Company also continues to rely in part on its financial backers while it the development of its user base and revenue streams are ongoing.

Skout’s server space and data centres are key, as are its software engineers and support workers who maintain the platform.

Cost Structure

Skout’s most significant costs relate to the development and maintenance of its app, management of its IT infrastructure and its retention of personnel.

In addition to paying a research and development team to keep the sCompany’s software platform up to date, Skout must also pay for the rental and operation of server space and secure data centres, as well as for the rental of office space and utilities.

Revenue Streams

Skout operates under a freemium business model, offering a number of optional paid-for services and products. While the Skout app is available for free, it includes advertisements contributed by third parties, often using location tracking to provide personalised advertisements. Users can pay a small fee for an ad-free version of the app.

The Company also generates a significant amount of revenue through in-app purchases, with users able to exchange real money for in-app currency. This virtual currency can be used to boost user profiles, obtain more information on users that have viewed your profile, or send gifts to other users.