It is hard for beauty product retailers to establish a loyalty program that will reveal the preferences and behavior of their customers. Poshly creatively solves this problem by allowing companies to get product feedback in exchange for freebies and Poshly’s fee. In the end it is a win win!
My only concern was about ensuring that product ‘reviewers’ align with the product’s target market, but it seems like Poshly is using a data driven approach to solving this problem.
My las question is why Poshly’s revenues are “still limited.” Is poshly capturing enough value to cover its costs? What is the demand for this type of service? What is the WTP? How much can Poshly realistically grow?
Amazed by the $1B value of the loyalty program. I wonder how they measure the ROI of the program, like how much additional revenue does each award dollar produce? This number may not exist as some of the value is hard to measure, such as the value of more targeted marketing and improved customer experience. Considering that the data is only being used for the benefit of caesars palace (it has not been sold to external parties), I’m curious as to how the program comes to be worth $1B to Caesar’s Entertainment corp.
Great Piece! I agree in that the $100M bid for house of cards rights was a significant investment for the company. The fact that the decision was supported by data is astounding, as is the success of the show. Yet I wonder if Netflix if capturing equivalent value from the series. Have their revenues increased as a result of their original content? are subscribers hanging on to their subscriptions for longer than they would were original shows not available? How is Netflix measuring their return on investment?
It would be interesting to know whether Netflix original content strategy is about new member acquisition, current member retention, or both.
People go to Yelp to see if the food at a restaurant is good. Then users go through photos and reviews to discover more about the ambiance and service of the restaurant.
Yelp has captured the crowds, but it is failing at structuring the data. Reviews can focus on any aspect of a restaurant experience, but users have to look for reviews that talk about what matters to them. Yelp can definitely step up its data collection and can even do some analysis of this data to make users life easier when finding restaurants or any other business.
I agree with you in that categories would create much value for Yelp’s users. And the solution is as simple as changing the format of user reviews.
Wikipedia has managed to remain true to crowdsourcing. Commercializing Wikipedia could perhaps help grow, verify, and keep its content and format relevant (imagine wiki answers instead of yahoo answers!). However, does Wikipedia’s non-commercial nature add value in the eyes of consumers? If not, then I would agree withy you in that Wikipedia is at great risk of being pushed out by tech giants.
“While we didn’t create Reddit to be a bastion of free speech, the concept is important to us. /r/creepshots forced us to confront these issues in a way we hadn’t done before. Although I wasn’t at Reddit at the time, I agree with their decision to ban those communities.”-Reddit CEO Steve Huffman
Reddit has found itself tangled in the crowdsourcing challenge that is managing the crowds and content. While users view reddit as a place to speak and read what people really think, reddit has banned content promoting racist views and exposing minors. Basically reddit has made the decision to exclude the dark side of the internet from its scope. I agree with your assertion that this had to be done to keep shareholders happy. Community members should recognize that reddit is not a “bastion of free speech.” Reddit is owned by Conde Nast and should be considered more of a bastion of profits. Conde Nast can thank the crowds for their hard work.
Poshmark creates value for sellers by providing them access to buyers. Likewise it creates value for buyers by providing them access to sellers. The bonus for sellers and buyers is that Poshmarks supports trading, so users can barter to obtain their desired fashions. The bonus for Poshmark is that buyers can easily become sellers, adding value to Poshmark’s platform/environment.
The steep hardware cost represents the biggest barrier to user adoption. It appears a wide number (1.5M) and variety of apps are already available. Apple just needs to get users to see that the value the watch offered matches its price. This is easier said than done, for it is hard for customers to see the value of the watch and justify its price at the point of sale (the apple store). Most users see the value once they have experienced the watch for a period of time (1-2 weeks). What apple could do to spur user base growth is offer a discount or rebate on the watch (the cheapest watch is priced at about $400). This would make it more accessible to users, but perhaps less profitable for Apple.
Great piece. Apple Music is offering 3 months free to first-time subscribers. This is to lure new users to their platform and to increase the chances of them becoming paid customers. This will hopefully strengthen Apple Music’s user base, which would in turn add value to artists and record labels.
Beautiful Pictures + Social Media + Community = What millenials want!
Glossier is genius in appealing to a generation that is increasingly shunning opaque corporate giants.
Millenials want to belong, millenials want a community, millenials want real people and simplicity.
The instagram company is embodied by Glossier!
I was interested in this post because it wasn’t very clear how the Skimm was a digital innovator.. but I agree! The Skimm may not have created a new means of communication, but it created value by conveniently providing concise analysis to a target audience. The value is in decluttering and analyzing all the facts of the internet and providing it via a means of communication we still take seriously – email. Bravo!
Crowdsourcing traffic and road information made all the difference for Waze, as it allowed for real time updates for users. This enabled Waze to create more value for users that Google Maps (Waze is the user-preferred app for driving navigation). Waze has also been more effective at capturing value through ad revenue. I agree: WAZE = WINNER!!