Online reviews can be big money. Just ask Yotpo, a Tel Aviv based startup that recently closed a $10.7M finance round, according the Wall Street Journal. The round was led by Blumberg Capital, a US venture firm, and will be mainly used to further expand into the US market.
Yotpo’s goal is to help companies generate verified reviews for their products, and distribute them over social media. Once a customer makes a purchase, Yotpo will automatically follow up with them after a set amount of time, encouraging them to write a review. Another feature allows potential customers to ask a question about a specific product. Yotpo will then use their database to find other people who own the item, and encourage them to post an answer. Companies can sign up to offer special discounts or rewards to users who answer these questions, essentially creating a gamified product FAQ for the brand.
This kind of organic, user-generated content (especially in review form) is currently highly valuable to brands. In addition to boosting sales, verified reviews can help SEO efforts and raise a page’s search ranking. According to Yotpo, over 30,000 companies currently use their service, and they generate around 100,000 reviews each month.