We speed up the decision making process.Melanie Alex Xiaodi VictorB.S., Chem. Junior, CS B.S., Eng. B.S., BEMPh.D., Chem. Grad. Student, CNS 1
Before making a product purchase:>65% of all consumers read online reviews* * From online research(2010)
>80% of consumers say a negative or positive review will influence their decisions >125 MILLION Americans CARE what online reviews say!
Of the 94 people we asked this week:• 95% say they read online reviews for consumer electronic products• >75% of those said consensus matters• One company says consensus means >20 reviews for their users consensus – lots of typical user experiences
What happens when consensus is not reached?• Consumers face indecision• Indecision is very important to online retailers• Returned goods • Website providing a similar solution has observed a 50% reduction in return rates
Sony BRAVIA KDL55HX850 55-Inch 240Hz 1080p 3D LED Internet TV
Sony BRAVIA KDL55HX850 55-Inch 240Hz 1080p 3D LED Internet TV Amazon Amazon 18 CNET 6 Sony 9 Pricegrabber 1 Pcmag 1 Tvbestcovery.com 1 Youtube 3 Total: 39 Consensus!!! AlaTest Total: 198 reviews
Companies are already doing this Company Investment (MM) Buyout (MM) Hunch 19.2 80 (eBay) gdgt 3.72 FindTheBest 6M Decide 8.5 Sparkbuy 1M 6 (Google)
MAXKey Partners 6 Key Activities 7 • Design the Business Model Canvas Day 1 Value Propositions 1 Problem: frustration with online electronic reviews since no Customer Relationships 4 • Publicize on Customer Segments 2Amazon ConsumerCNET platform central source exists that: trending key words electronics usersNewegg • Optimizing • filters fake reviews & word of mouthEngadget UI/UX, and AI • sorts by key words Young, tech-savvy • Publicity & • Building trust andGizmodo • normalizes reviews convenience to customersand more….. Partnership Development increase the Needs: save wasted time spent Provide condensed, stickiness on visiting multiple sites and organized and Key mentally filtering spam reviews trustworthy Resources 8 information from Technology Key Features: aggregated data Channels 3 product reviews (web scraper) that provides: • Website Some • personalized ranking of reviews Financial • any statistically significant • Mobile apps resources product failure/design flaw • Social networks • channel to issue a complaint (reports and Cost Structure 9 infographs)Possible contracts with key partnersInternet infrastructuresOperational cost Revenue Streams 5Annotation cost Affiliate marketing / Selling data / Selling serviceAdvertising 9
Business Model Canvas Day 2 Key Key Value Propositions 1 Customer CustomerPartners Activities 7 Problem: frustration with online Relationships 4 Segments 2 6 • Design the electronic reviews since no central • Publicize on Consumer platform source exists that: trending key words electronics usersAmazon • Optimizing • filters fake reviews & word of mouthCNET UI/UX, and AI • sorts by key words (customizable) Young, tech-savvyNewegg • Publicity & • normalizes reviews delivers • Building trust andEngadget customers Partnership detailed technical information convenience toGizmodo increase the Development Needs: save wasted time spent on Amazonand stickinessmore….. visiting multiple sites and mentally CNET Key filtering spam reviews Newegg Resources 8 • aggregate all reviews Engadget Technology • prioritize detailed, intelligent reviews Channels 3 Gizmodo (web scraper) with informational value • Website and more….. Some • collapse but include general ones Financial (consensus is important) • Mobile apps Provide condensed, resources organized and Key Features: aggregated data that • Social networks trustworthy provides: (reports and information from Cost Structure 9 personalized ranking of reviews infographs) product reviewsContracts with key partners statistically significant productInternet infrastructures failure/design flawsOperational cost channel to issue a complaint Revenue Streams 5Annotation cost detailed comparison of products Affiliate marketing / Selling data /Advertising Selling service 10
Business Model Canvas Day 3 Key Key Value Propositions 1 Customer CustomerPartners Activities 7 Problem: frustration with existing Relationships 4 Segments 2 6 • Design the online electronic resources. • Publicize on platform trending key words DiscerningAmazon •Time consuming • Optimizing & word of mouth customersCNET •Information overload UI/UX and AI •Lacking confidenceNewegg • Publicity & • Building trust andEngadget Problems/Needs: convenience to PartnershipGizmodo • Delay in purchasing increase stickiness Amazon Developmentand • Creating new customers CNETmore….. Newegg Key Engadget Key Features: Resources 8 Credible Channels 3 Gizmodo Technology • Website … Personalized (web scraper) • Mobile apps Comparison of ‘soft’ specifications Financial • Social networks Uncover product failure resources (reports, infographs) Direct Contact Cost Structure 9Contracts with key partners Revenue Streams 5Internet infrastructuresOperational cost Affiliate marketing / Selling data /Annotation cost Selling serviceAdvertising 11
Business Model Canvas Day 4 Key Key Value Propositions Customer CustomerPartners Activities Problem: frustration with existing Relationships SegmentsAmazon • Design the online electronic resources. • Publicize on platform trending key words DiscerningCNET customersNewegg • Optimizing Problems/Needs: & word of mouthEngadget UI/UX and AI • Publicity & • Personalization • Building trust andGizmodo convenience toand Partnership • Delay in purchasing increase stickiness Amazonmore….. Development CNET • Creating new customers Newegg Key Engadget Resources Channels Gizmodo Technology Key Features: • Website (web scraper) • Mobile apps LinkedIn Financial Personalized Airbnb • Social networks resources (reports, infographs) Comparison of ‘soft’ specifications Direct Contact License IP? Cost Structure Need more data!Contracts with key partnersInternet infrastructuresOperational costAnnotation cost Revenue Streams Affiliate marketing / Selling data / Selling service/License IP 12
Business Model Canvas Day 5 Key Key Value Propositions Customer CustomerPartners Activities Problem: frustration with existing Relationships SegmentsAmazon • Design the online electronic resources. • Publicize on platform trending key words DiscerningCNET customers • Optimizing Problems/Needs: & word of mouthNeweggEngadget UI/UX and AI • Indecision • Building trust andGizmodo • Publicity & • Product Returns convenience toand Partnership • Lack resources to develop similar increase stickiness Amazonmore….. Development algorithm CNET • Creating new customers Newegg Key Engadget Resources Key Features: Channels Gizmodo Technology Personalized • Website (web scraper) Comparison of ‘soft’ specifications • Mobile apps LinkedIn Financial Uncover product failures • Social networks Airbnb resources (reports, infographs) Direct Contact License IP? Cost Structure Need more data!Contracts with key partnersInternet infrastructuresOperational costAnnotation cost Revenue Streams Affiliate marketing / Selling data / Selling service/License IP 13
The SolutionKey Features• Personalized• Sort by ‘soft parameters’ in addition to tech specs• Allows comparisons on these ‘soft’ parameters Soft parameters – Info regarding usability of product not provided by a spec sheet. e.g., how hard is it to unbox 55” tv?
What we’ve learned• Indecision is a big problem for online retailers• Consensus – people want non technical user experience• Returns are an issue too• Fake reviews don’t matter• Not just Tech savvy users are frustrated• Focus on Consumer electronics (because fastest growing online segment)
Next steps• More market research since our target market is much larger than what we have sampled• Speak to more experts in the field• Speak to businesses that have a small presence on Amazon• Explore algorithm licensing option