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- Today, basic consumer-facing review technology is considered a commoditized, mature area. However, there are areas of innovation where providers offer differentiated solutions. These areas represent compelling growth opportunities for emerging providers and their investors.
- Several factors are driving this innovation, including advances in machine learning and natural language processing technology, increasing e-commerce regulation, and growth in e-commerce's share of total retail sales.
- We map the market and explore five review technology subsegments in detail: core review data management platforms, vertical review platforms, social listening platforms, review data analytics platforms, and customer intelligence platforms. We also highlight some key players in and adjacent to each area.
TABLE OF CONTENTS
Includes discussion of TRIP and seven private companies
Evolution of customer review technology
Where review technology is headed
Challenges facing the review technology market
Five trends to keep in mind
Core review data management platforms
Vertical review platforms
Social listening platforms
Review data analytics platforms
Customer intelligence platforms
Review technology: An overlooked area primed for the spotlight
First Analysis E-commerce Optimization Index near one-year high
E-commerce M&A: Notable transactions include Affable.ai and PowerReviews
E-commerce private placements: Notable transactions include Faire Wholesale and Pitchy.io
Evolution of customer review technology
In the internet era, the average consumer follows a predictable pattern when shopping online: search; land on a product page or marketplace; look at descriptions, cost and special offers; compare against competitors; and (perhaps most crucially) read or view customer reviews. Customer reviews are so important because they are a goldmine of data. They provide personal anecdotes about, and evaluations of, the exact products and services prospective buyers are evaluating. They provide information about attributes such as size, fit, taste and strength that may not be available in other marketing and sales material.
Before the internet, review data (and often even basic product and service data) was not easily accessible. For product and service insights, people mainly sought views from trusted personal acquaintances. That changed with advent of the internet, which ultimately made millions of reviews on hundreds of websites and marketplaces available to consumers in a matter of seconds.
But this didn't happen overnight.
In the late 1990s, review functionality was nascent and primarily associated with marketplaces. Some companies focused on review aggregation, and a few prominent players like Rateitall.com, Deja.com and Epinions began to dominate the space. This developing landscape witnessed a wave of mergers and acquisitions, most notably Google's acquisition of Deja.com, which offered online comparison-shopping services, search capabilities, online ratings, and internet discussion forums. Today, Google is considered a review powerhouse where businesses need to rate highly if they expect to gain consumer trust and drive business from search engine optimization and the Google platform.