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YELP Case Study Analysis Sheryl Kantrowitz, sherylk@temple. edu
ANALYSIS OF YELP’S PRIMARY COMPETITORS SITE PURPOSE REVIEWERS’ BENEFITS REVIEWEES’ BENEFITS BUSINESS BENEFITS TRIP ADVISOR Offers travelers a chance to share their experiences and review various aspects of their trip(s). Can share experiences, join forums, etc. May ask questions and seek answers through search or through forums. Can use reviews to boost their business. YP. com Formerly known as Yellow. Pages. com, YP's comprehensive guide makes it easy for customers to find local restaurants, attorneys, home improvement experts, and health and wellness providers. Can share ratings and reviews via website (has issues with mobile aspects of the review process). Consumers are more apt to contact business or make a purchase after searching on YP than many other sites. (see source below). Many businesses have a lower amount of YP reviews than on competing sites ANGIE’S LIST Angie's list is fully dedicated to helping members find the best contractor to do a job. Members can post feedback about your experiences with service or health care providers through our website Membership is required to read reviews. Monthly fee is minimal for those who often use contractors for various services. • • • Get more business Manage your reputation Customize your profile Read & respond to reviews Access business tools.
ANALYSIS OF YELP’S PRIMARY COMPETITORS YELP GOOGLE SITE PURPOSE REVIEWERS’ BENEFITS REVIEWEES’ BENEFITS Offers a space for consumers to share reviews and seek reviews and recommendations from other like-minded consumers. Yelp covers a wide array of industries from services to restaurants to local shops. • Complain about a problem and seek customer service from company. Offer product or service feedback or reviews. Desires to be a greater part of the Yelp community • Offers businesses the opportunity to have a listing that can include hours, website, customer reviews, photos, etc. • Offer feedback and rate a business Help others learn more about a company • • BUSINESS BENEFITS Get an answer to a • question. • Get customer opinion on a product or • service. Find a coupon or a deal for a product or service Find more information about a product or service. Seek out a company in an industry and find out about others’ experiences with these companies before choosing one. • • Ccan offer deals Can respond to reviewers’ issues or simply thank them. Can use Yelp as a way to work on their business. Businesses can be verified by owners who then can be in control of all business info. Can become active members of the community and respond to reviews.
Yelp’s Annual Net Revenue from 2007 -2014 (in million U. S. dollars) Where Users Go to Seek Opinions Before Purchasing SOURCE: http: //www. statista. com/statistics/278022/yelpsannual-net-revenue/
How Yelp Monetizes Their Platform Currently Yelp generates revenue by: • Selling advertising package subscriptions • Offering a feature for businesses to place their ads on pages of similar businesses in the area (example on right below) • Competitor ad removal: removal of ads purchased by nearby businesses from your Yelp Business Page. • Selling ‘review advertisements” (see example on left below) • Offering customizations such as business videos and “call to action’ buttons • Selling advertising space to larger companies (not currently reviewed on their site)
Future Ideas for How Yelp Should Monetize Their Brand CRISIS COMMUNICATIONS By selling advertising space to businesses featured on Yelp as well as offering various special enhanced business features in return for monthly fees, Yelp is losing their credibility and in turn, their stock price is falling. NEW MONETIZATION STRATEGY: Monetize the site by offering Yahoo or Bing an exclusive arrangement for Yelp reviews to appear in search results on their sites, much like Google+ Reviews and Business pages do on Google’s search engine.
How Yelp Contributes to Consumer Decision-Making Process AWARENESS UNDERSTANDING ATTRACTIVENESS + AFFORDABILITY AVAILABILITY PURCHASE INTENT PURCHASE Word-ofmouth online and offline about Yelp review site Star Ratings, reviews and information about business pricing # of reviews, credibility of reviewers (Yelp Elite or friends one is connected to on Yelp); value for the money Business owner response could greatly affect the customers’ decision to purchase 82% of users visit Yelp with the intent to purchase from a local business 89% of users who make a purchase at a business they found on Yelp do so within a week after researching (SOURCE: Nielsen, April 2013)
Role Yelp Plays in Customer Satisfaction POST PURCHASE EVALUATION: Yelp needs to then turn people who visit to read reviews into reviewers and eventually part of the Yelp Elite Squad. They can do this by: 1. Following up with visitors as to their satisfaction with their Yelp experience using surveys and polls. 2. Offer a ‘rewards / points’ program for visitors which could help them over the pain point of registering for an account. This program can offer them special offers from local businesses based on the amount of points earned as well as entry into the Elite Squad at a point in the rewards cycle.
Thank you. Sheryl Kantrowitz, sherylk@temple. edu