On the verge of obsolescence, the formerly popular social check-in app Foursquare reinvented itself yesterday as a local search and review expert that has all the makings of a Yelp-killer.
From the moment you open the app and see the sleek, intuitive interface, it's apparent Foursquare is taking aim directly at Yelp's two biggest weaknesses: design and credibility.
The clearinghouse of local reviews has become the default local search app simply due to its massive scale, but it has long been ripe for a face-lift. And we've just learned that customers can be fined for writing negative reviews. Further calling Yelp's reliability into question is that the reverse also remains true: Businesses often give coupons and incentives for sugar-coated reviews.
But Foursquare's local review service puts heavy emphasis on reviews from professionals (think magazines and travel guides). And it's just plain easy to use.
Foursquare burst onto the scene five years ago with a novel idea: People should let others know where they are. And whether people were at their day job or their favorite dive bar, check-ins became all the rage. Foursquare planted the seeds of the selfie-obsessed culture of oversharing that we know today. At one point, a Facebook friend of mine was even routinely checking in at his weekly appointment with the psychiatrist, leading him to be dubbed the virtual "mayor" of a mental health facility.
But Foursquare's problem soon became evident: There was no barrier to entry for competitors. Soon every app with social network integration simply wrapped in its own check-in feature. Foursquare lost all relevance.
Companies founded around a single idea or product are notoriously bad at pivoting. Corporate inertia has harmed many companies competing in a fast-changing technology landscape, from Friendster to AOL to Blackberry to Kodak. Not Foursquare.
Foursquare announced earlier this summer it would split its app into two new services: Swarm for location-sharing, and Foursquare for local recommendations and reviews.
It's a brilliant strategy, providing a place for the last remaining stalwarts of the old app while simultaneously launching a dramatic revamp.
But make no mistake, Foursquare has a long road ahead. Yelp has a critical mass, and that's a hard thing to change. Plus, we all love those classic Yelp horror stories: long and painfully detailed descriptions of the time you left the salon with green hair or found a human finger in your clam chowder. But while Yelp will likely be around for quite some time, there's room for competition.
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