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BeM: A Start-Up's Journey through Online Product Reviews
內容大綱
The product recommendation website BeM was launched in 2020 in Brazil to explore the significant and untapped potential of the country's online reviews market. Inspired by US models, BeM's webpages featured expert-generated reviews of products in four categories: air fryers, headphones and earbuds, Bluetooth speakers, and irons. Its revenue model centered on participating in affiliate marketing programs: BeM's website included links to various online merchants' pages, and the group earned commissions when users made purchases through these links. After a year of operations, BeM had attracted 186,000 visitors to its webpages, but sales conversion remained a challenge. While over 80% of customers who read BeM's reviews clicked on affiliate links, under 1% completed a purchase immediately or shortly after. The field-based case study features BeM's executive director, Josiane Schunck, as she prepares to discuss the start-up's future with its four cofounders. The key question the group needs to address is whether to keep growing the BeM website or move on to another venture, where they could apply the learnings from this experiment. Should they embrace Silicon Valley's "fail fast, learn faster" mantra, or make adjustments and double down on the BeM bet? If they decide to continue growing the business, what could be the most effective strategies to enhance BeM's financials, reducing costs and boosting revenue generation? Could partnerships with media groups, retailers, or manufacturers help BeM build alternative revenue sources, or would it be better to keep operating independently? And which product categories should BeM focus on next, not only to attract more users but also to improve its sales conversion rates? This case is appropriate for use in an MBA, executive education, or undergraduate course on entrepreneurship, marketing, innovation, digital disruption, or digital businesses.