One of the hottest spaces in the Web 2.0 world is referred to as the consumer review space. Basically, a group of startup companies are all trying to become the go to place for independent consumer reviews and recommendations.
I view this all as the How’s My Driving bumper sticker coming to the web.
Last week saw dueling press releases from two of the recognized leaders PowerReviews and Bazaarvoice announcing they have each raised another huge round of funding. Other startups in the space include Buzzillions, RatePoint, and Yelp. I’m probably missing a bunch of other good companies too. Just looking at these five companies, it is easy to estimate venture capital investment into this space closing in on $100 million dollars by the end of the year. Probably much more. One (or two) might have a healthy liquidity event. The rest will quickly spend all of their VC’s money.
Thankfully, these business models do look slightly different,spiced with some client focused creativity and sales efforts. At least, they aren’t all simply saying their model is eyeballs and adsense.
However, what I find unsettling is the technology tools they have built to run these sites are all so similar. All of these sites require consumers and their core group of high intensity reviewers to change their behaviors. Send a review to a website, go to the site for a review, even though the business transaction may not use ecommerce. Most of these sites are focused on traditional retailers and local buying patterns.
Web 2.0 folks here is a hint from the Telco folks, assuming a competitive market place with alternatives, technology fails if it requires people to change their behaviors.
I agree that consumers do look, give, and ask for reviews and recommendations constantly. Just analyze your own consumer behavior every weekend and count how many times an internal review process happens. I agree that most businesses really do want feedback from consumers whether they are happy or unhappy. More importantly, business owners want feedback in real time and they want a chance to address a problem or highlight a strength. Most consumers are willing to give feedback if asked at the time they care the most…like when the good or bad business transaction has taken place.
So, why not inject a little real time communications technology into these processes? We have all seen the bumper sticker on the back of the freight truck asking “How’s my driving? “and providing a phone number for feedback. That bumper sticker is simply a brilliant process innovation. Lets do that for every business and consumer transaction.
For all the money being invested in the consumer review space there really doesn’t seem to be much thought given to how businesses and consumers actually behave on a daily basis.
I’ve just watched a movie, bought a dishwasher, had dinner at a restaurant…please text or call and tell us what you think.
If you are trying to change the consumer review industry…ask yourself “how’s my driving?”