Appkodes Tinder Clone Script with Customisable Solutions.pptx
The Importance of User Experience for Yelp Inc.
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
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AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and Services
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
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AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and
Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp
3. MetropolitanCollegeMetropolitanCollege What is Yelp?
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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
5. MetropolitanCollegeMetropolitanCollege Target Customer & Revenue Model
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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. 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.
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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. MetropolitanCollegeMetropolitanCollege Industry Analysis
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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. MetropolitanCollegeMetropolitanCollege Complaints about Yelp
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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. 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)
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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. MetropolitanCollegeMetropolitanCollege Prick the Bubble of Engineer (1/2)
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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. MetropolitanCollegeMetropolitanCollege Prick the Bubble of Engineer (2/2)
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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. 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
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AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and
Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp
Recommendation
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
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AD741 D2 (Spring 2014) The Innovation Process: Developing New Products and
Services Team3 Carrie, Claudia, Jim, Tipp, Wow, Ib, Patti - Yelp
