The Importance of User Experience
Yelp Inc.
Team 3
Chia-Hsin, Fan(Carrie); Chun-Yu, Fan(Claudia);
Ittitep Tepkasetkul(Jim)...
MetropolitanCollegeMetropolitanCollege Background
Background:
• Founder: Jeremy Stoppelman and Russel Simmons in
2004 (ex-...
MetropolitanCollegeMetropolitanCollege What is Yelp?
4/17/2014 3
What they think their product is
AD741 D2 (Spring 2014) T...
MetropolitanCollegeMetropolitanCollege
Ideal
Product
Generic
Product
Expected
Product
Whole
Product
For Business: messagin...
MetropolitanCollegeMetropolitanCollege Target Customer & Revenue Model
4/17/2014 5
Partner
ProductTarget
Market
Revenue Mo...
MetropolitanCollegeMetropolitanCollege Expense Causes Loss
Expand new markets increases revenue
but also increase expense
...
MetropolitanCollegeMetropolitanCollege Industry Analysis
4/17/2014 7
Threat:
• Low-profitable
industry
• Powerful substitu...
MetropolitanCollegeMetropolitanCollege Complaints about Yelp
4/17/2014 8
AD741 D2 (Spring 2014) The Innovation Process: De...
MetropolitanCollegeMetropolitanCollege Losing Business Clients
Yelp is useless due to neglect of user experience
• Not eno...
MetropolitanCollegeMetropolitanCollege Prick the Bubble of Engineer (1/2)
4/17/2014 10
Tactics
Kick It (UI) Simple and Stu...
MetropolitanCollegeMetropolitanCollege Prick the Bubble of Engineer (2/2)
4/17/2014 11
Tactics
Click rate: “Activity Feed”...
MetropolitanCollegeMetropolitanCollege Prick the Bubble of CEO
Reducing marketing expense
• Suspend expanding internationa...
MetropolitanCollegeMetropolitanCollege References
• Darwell, B. (2013, 4 30). Facebook earnings preview: changes to ads, p...
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The Importance of User Experience for Yelp Inc.

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The Importance of User Experience for Yelp Inc.

  1. 1. The Importance of User Experience Yelp Inc. Team 3 Chia-Hsin, Fan(Carrie); Chun-Yu, Fan(Claudia); Ittitep Tepkasetkul(Jim); Kanlayarat Santiwijit(Tipp); Nawaporn Chirananondh(Wow); Pakanun Poolvoralaks(Ib); Pei-Jung Huang(Patti) Dr. Barry Unger 4/17/2014 1 AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services
  2. 2. MetropolitanCollegeMetropolitanCollege Background Background: • Founder: Jeremy Stoppelman and Russel Simmons in 2004 (ex-employees from PayPal) • Motivation: the perfect pizza (yellow page only have paid ads) IPO in 2012/3/2 Small group of contributors that Yelp “Take the lead” Current situation & Dilemma: • Charging local businesses (current) vs. readers • They don’t know what they are 4/17/2014 2 AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp
  3. 3. MetropolitanCollegeMetropolitanCollege What is Yelp? 4/17/2014 3 What they think their product is AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp
  4. 4. MetropolitanCollegeMetropolitanCollege Ideal Product Generic Product Expected Product Whole Product For Business: messaging system, account manager For Reader: Order Delivery, Deals & Coupon, Health Score Sponsorship Program Yelp Ads Banner Ads Activity Feed (Free) Platform Data (Click Rate, Review) Community Product Analysis 4/17/2014 4 What their product actually is AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp
  5. 5. MetropolitanCollegeMetropolitanCollege Target Customer & Revenue Model 4/17/2014 5 Partner ProductTarget Market Revenue Model Sponsorship Program Yelp Ads Banner Ads AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp
  6. 6. MetropolitanCollegeMetropolitanCollege Expense Causes Loss Expand new markets increases revenue but also increase expense • Sales & Marketing costs 55% • Sales Staff’s commission Once achieve saturation point, Yelp will die. 4/17/2014 6 S&M 55% Expenses in 2013 Why Yelp isn’t profitable? AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp -50 0 50 100 150 200 250 2010 2011 2012 2013 Inmillion Revenue Expenses Net Loss
  7. 7. MetropolitanCollegeMetropolitanCollege Industry Analysis 4/17/2014 7 Threat: • Low-profitable industry • Powerful substitutes Opportunity: • Highly dependent users(readers) Existing Rivalry - User Review Site • High competition • Low-profitable (advertising expense, sales force) • Keep changing revenue model New Entrant - Info Media • Low entry barriers • Capital requirement Potential Substitute - Social Network • Similar feature can easily replace • Large financial support • Large loyal community Why Yelp isn’t profitable? Winners must find the Blue Ocean to contain users AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp
  8. 8. MetropolitanCollegeMetropolitanCollege Complaints about Yelp 4/17/2014 8 AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp Why Yelp isn’t profitable?
  9. 9. MetropolitanCollegeMetropolitanCollege Losing Business Clients Yelp is useless due to neglect of user experience • Not enough local database to attract readers • Biased comments or fake reviews • Unfriendly user interface • Unprofessional interaction and communication • Poor customer services New idea of product, “Filters”, but it’s overwhelming “Old tech isn’t surpassed by disruptive tech but because the market demand” (Bower & Christensen, 1994) 4/17/2014 9 Why Yelp isn’t profitable? AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp
  10. 10. MetropolitanCollegeMetropolitanCollege Prick the Bubble of Engineer (1/2) 4/17/2014 10 Tactics Kick It (UI) Simple and Stupid • Website: make homepage simple and focus on searching • Mobile: make it ease to share (i.e. picture menu, restaurant atmosphere) Create “Pick for Me” (advising feature) • Randomly select three 4-stars- restaurants by location Excepted Product Platform Strategy Enhance features AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp Recommendation
  11. 11. MetropolitanCollegeMetropolitanCollege Prick the Bubble of Engineer (2/2) 4/17/2014 11 Tactics Click rate: “Activity Feed” (= Google Analytics) Reviews: Filter by system and then monitor by user-support team • Fake: Delete biased reviews to maintain reputation (= Google Scorecard) • Negative: Consulting Program Accumulate more database Excepted Product Data (Click Rate & Review) Strategy Develop new business model AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp Recommendation
  12. 12. MetropolitanCollegeMetropolitanCollege Prick the Bubble of CEO Reducing marketing expense • Suspend expanding international markets • Decrease budget on Elite program Collect more user experience • Setup feedback feature on site • Encourage Yelper to give feedbacks • Fix the problems seriously Develop new products • Host event advertising (i.e. restaurant week) • Create “Consulting Program” Find a big brother: Sell to Facebook 4/17/2014 12 AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp Recommendation
  13. 13. MetropolitanCollegeMetropolitanCollege References • Darwell, B. (2013, 4 30). Facebook earnings preview: changes to ads, payments, gifts and other revenue streams in Q1. Retrieved 3 31, 2014, from InsideFacebook: http://www.insidefacebook.com/2013/04/30/facebook-earnings-preview-changes-to-ads-payments-gifts-and- other-revenue-streams-in-q1/ • Lardinois, F. (2012, 10 10). Shrink To Grow: Citysearch And Urbanspoon Parent Company CityGrid Lays Off 15% Of Its Employees. Retrieved 3 30, 2014, from TechCrunch: http://techcrunch.com/2012/10/10/shrink-to-grow-citysearch-and-urbanspoon-parent-company- citygrid-lays-off-15-of-its-employees/ • Piskorski, M. J., Chen, D., & Smith, A. (2013). Yelp. Boston: Harvard Business School. • Tsai, L. (2009, 12 9). Chowhound Comes of Age (For Better or Worse). Retrieved 3 31,2014, from East Bay Express: http://www.eastbayexpress.com/oakland/chowhound-comes-of-age-for-better-or-worse/Content?oid=1524763&showFullText=true.html • Chris Silver Smith (2010). Is “Yellow Pages” Becoming An Obsolete Concept?. Retrieved 3 31, 2014 from Searchengineland:http://searchengineland.com/is-yellow-pages-becoming-an-obsolete-concept-38752 • Nick Stamoulis (2012). Why Yellow Pages Will Be Dead in Five Years. Retrived 3 31,2014 from searchenginejournal: http://www.searchenginejournal.com/why-yellow-pages-will-be-dead-in-five-years/40008/ • Rusell Perkin (2011). Rating the Zagat. http://infocommerce.typepad.com/my-blog/2011/09/rating-the-zagat-deal.html • Laurent Kirchner (2011). Zagat Remains a Profitable Brand. Retrieved 4 1, 2014, from CJR:http://www.cjr.org/the_news_frontier/zagat_remains_a_profitable_bra.php?page=all • Tsuruoka, D. (2012, 07 24). TripAdvisor Q2 Sales Miss Analyst Views; Shares Down. Retrieved 4 1, 2014, from investors: http://news.investors.com/technology/072412-619352-tripadvisor-second-quarter-sales-miss-estimates.htm?p=full • Trefis Team. (2013, 09 05). TripAdvisor Revised To $79: Advertising Business Has A Brighter Future. Retrieved 4 1, 2014, from Trefis: http://www.trefis.com/stock/trip/articles/201440/tripadvisor-revised-to-79-advertising-business-has-a-brighter-future/2013-09-05 • Bussgang, J. (2012, 08 17). Scaling is Hard, Case Study: TripAdvisor. Retrieved 4 1, 2014, from Inc: http://www.inc.com/jeff- bussgang/scaling-is-hard-case-study-tripadvisor.html • SAUL HANSELL. (2008, 05 12). Why Yelp works. Retrieved 4 1,2014, from New york times. • Paula Forbes. (2013, 4 22). SF Restaurant Calls For Yelp Boycott: 'Stop the Bully’. Retrieved 4 1, 2014, from EATER. • Michael Luca. (2011, 9 16). Reviews, Reputation, and Revenue: The Case of Yelp.com. Retrieved 4 1,2014, from Harvard business school case study. • Sandy Banks. (2013, 4 22). Putting Yelp in their rear-review mirror. Retrieved 4 1,2014, from Los Angeles Times. • THE YETI. (2013, 10 29). 4 Reasons Why You Shouldn’t Trust Yelp Nightclub Reviews. Retrieved 4 1,2014, from THE YETI 4/17/2014 13 AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp

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