Yelp’s Chad Richard On The Current State — And Near Future — Of Voice Activation

For the past several years, local digital guide Yelp has been working to move beyond being perceived as a “reviews site” to a platform that help make transactions between consumers and businesses.

For example, its Request-A-Quote feature, which lets Yelp users get the price of services before making a purchase via the guide platform, saw volume rise almost 30 percent over the past year.

Before that, Yelp expanded its restaurant services beyond its SeatMe and Yelp Now reservations tools with the purchase of former partner Nowait, a mobile platform that lets consumers virtually hold their place in line at casual dining establishments.

Yelp’s transaction business also was rounded out with last year’s $20 million purchase of location-based loyalty and retargeting platform, Turnstyle, which runs an in-store platform that then connects marketing services to consumers’ phones at 3,500 business places.

In a conversation at November’s Yext’s Onward 2017 conference with Yext President and Chief Revenue Officer Jim Steele,  Yelp COO Jed Nachman discussed  how the role of Connected Intelligence systems that power voice activated assistants and chatbots dovetails perfectly with the trajectory the 14-year-old company has taken.

“For voice and chat, you have to have the data to handle real-world interaction,” Nachman said of the company’s Yelp Knowledge, a tool that analyzes businesses’ reviews to help  understand the experience at specific locations.

To elaborate on how Yelp sees the rise of voice activation, we caught up with Chad Richard, Yelp’s SVP, Business and Corporate Development. Richard joined Yelp in 2015.

Before that, he spent six years at Apple as senior director of Worldwide Product Marketing focused on the Cupertino company’s operating systems and internet services, which included acquiring and building up the first mass market voice-enabled assistant, Siri.

GeoMarketing: What’s the state of voice activation and what does it mean for Yelp?

Chad Richard: Voice activation is a rapidly evolving paradigm of human-computer interaction that I’m pretty excited about. The utility of voice assistants and voice activation is especially high when people are on the go, and high quality local content is obviously a vital component to those mobile moments, so Yelp has a big role and opportunity here.

How does the Yelp Fusion API program reflect the influence of voice activation?

Yelp Fusion is a set of APIs and customized feeds for partners and independent developers who want to integrate Yelp content into their apps, websites, and services. Voice-activated devices and virtual assistants is a very popular Yelp Fusion use case and we’re already seeing some cool applications with our data.

How does Yelp work with other voice-activated platforms?

Yelp has partnered with Apple and been integrated into Siri since its launch in 2011. We also supply local data and content to Amazon for Alexa. So, products like Echo and Fire TV products are enabled with Yelp content. We work with Microsoft on Cortana and also collaborate with companies like Hound, both in their Hound products as well as Houndify, their platform where developers can develop their own voice activated applications that are Yelp enabled.

We work with Nuance, which has been part of the roots of all this, from the actual NLP standpoint to understand what people are actually saying. We’re also working with Samsung Voice, in coordination with Viv, a startup launched by the creators of Siri after they left Apple. Samsung bought Viv and it now powers Samsung’s personal assistant, “Bixby.”

So, even at this early stage, Yelp is virtually omnipresent in all the voice ecosystems. We’re powering voice experiences that are really great when you’re on-the-go, making queries to your smartphone, and even on your Echo when you are hanging out at home. You’re already using Yelp when talking to Bixby or Siri on your Android or iPhone.

The other place we’re seeing voice activation starting to grow is in the car. And that’s not just through Apple’s CarPlay, where you’re using Siri. It’s also native in dashboard experiences. So we’re already working with a lot of auto manufacturers via the Yelp Fusion API, and as those interfaces evolve to offer voice, Yelp will help to deliver our great local content as well.

Yelp’s always been pretty successful at getting our content integrated into car dashes, from BMW, Mercedes, Volvo, Lexus, Toyota, Honda, just to name a few automakers. Most of the auto manufacturers are working with us one way or another, either directly or through integrates like Harmon, or others selling into the auto space. In addition to finding great restaurants on-the-go, drivers can also reserve a table via Yelp Reservations so that there’s a table waiting for them when they arrive. Lastly, we’ve made it possible for drivers to “get in line” remotely at a restaurant through our acquisition of Nowait, which is now a part of Yelp Reservations.

How does Yelp serve as the bridge between brands and voice-activated devices?

When you are using voice enabled experience you want answers as opposed to a traditional search experience where you have a high tolerance for scanning various search results to find what you were really looking for. Yelp is a trusted source for high intent searches because we are able to deliver accurate information that’s highly relevant. This serves brands and businesses well by connecting them directly with the consumers via voice services.

How do you perceive the challenges for brands when it comes to using voice-activation?

One of the tough things about voice activation is for the assistant to really understand what consumers are really asking for. It means having as much content about the user as possible — such as identity, location and preferences – to having speech pattern technologies that can break down the query into specific nouns. If someone says  “Hong Kong café,” are they talking about a café in Hong Kong? Or are they talking about the Hong Kong Café down the street?

There are a million examples of how disambiguation becomes extremely important for these assistants to be smart and efficient for users.

There is the natural language processing and identity extraction side of all of this but its further complicated by the fact that these assistants are built with a broad range of data sources and therefore don’t just rely on Yelp data. We work closely with partners to help ensure they know when a question is best answered by Yelp.

How do you expect voice activation to shape marketing at the local level?

For us, voice represents an incredibly exciting human-to-computer interaction capability where local data is highly relevant. If you think about what Yelp’s been focused on for 14 years now — we’ve been connecting people with great local businesses.

But over the last few years, we have been really focused on getting transactional with it. And what’s cool about voice and Yelp’s role in this trend is the evolution from helping you find great restaurants and places to get a haircut, to actually being able to book a table or order pickup or delivery at that restaurant. Or go ahead and schedule that appointment at the hair salon. Yelp not only powers the discovery process, but it can power the purchase actions that follow.

From a marketing perspective, is the use of voice as opposed to text that different?

It’s not just about discovery with voice. Whereas text is offering a series of options for clicking, voice is about driving transactions. The consumer has this very clear intent that we can actually activate.

We’re seeing two types of voice platforms. You have voice platforms like Siri and Bixby, where you use voice to do the query, but then you get a visual response. And then you can “tap, tap, tap: book” or “tap, tap: buy.” That’s cool, but it’s also great in those moments when tapping isn’t an option – when you’re driving your car or using an Echo. You’re able to simply find — and get — that specific thing you want. And because it’s not a “tap-centric” environment, being able to conduct that transaction via voice is powerful.

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‘Facebook Events’ App Is Now ‘Facebook Local’

Facebook has revamped the separate Events app it released last year into with a broader mission designed to promote discovery and reviews.

The new version, which is being rolled out on Apple iOS and Google Android devices is called, simply, Facebook Local.

“Last year, we launched a standalone app for people who love using Facebook events to find things to do around them,” said Aditya Koolwal, Product Manager, in an email. “Now, we’re updating that app to help people find more things to do with their communities. The new app, Facebook Local, helps you easily find what to do, where to go, where to eat, or what you need— all recommended by the people you know and trust.”

If that sounds a lot like Foursquare and Yelp, you’re probably right. But for Facebook, the decision simply follows its years-long focus on local as it tries to counter its primary advertising and marketing rival, Google.

The release of Facebook Local comes after another high-flying quarter for the social network. Earlier this week, Facebook reported its Q3 2017 earnings by saying it now has nearly 2.1 billion people using Facebook every month and nearly 1.4 billion people using it daily. (Instagram also hit a big milestone this quarter, now with 500 million daily actives.”).

Facebook Local app in action. Source: Facebook

Overall, total revenue grew 47 percent year over year, and we had our first ever quarter with more than $10 billion in revenue. And with social media being inherently local, Facebook’s effort to make it easier for its users and businesses to connect and engage with each other is essential to keeping those numbers rising.

“For my part, when I think about our Marketer segment, we have SMBs; we have brand, direct response, and developers,” Facebook COO Sheryl Sandberg told analysts during the company’s earnings call. “We’re seeing strong growth across all those areas. “I think if you think about where the growth remains, it really is in increasing the relevance of the ads, because the ads I think are getting better in terms of reaching the right people at the right time.”

All Users Are Local

While Facebook Local didn’t come up during the earnings call, the importance of local advertising did.

Sandberg touted Facebook’s Custom Audiences and its targeting tools, as leading to better experiences for both consumers and businesses.

As an example, she pointed to an effort by the Alameda County Fair, a local fairground in Pleasanton, California. The Fair used Facebook to target people within 25 miles of their fairgrounds, focusing on ages 20-to-51 who have specific interests in concerts, music festivals, and theme parks. As a result of Facebook’s tools, the Fair saw season pass ticket sales for 2017 rise by 50 percent compared to 2016.

“That’s really about finding the people that are interested,” Sandberg said. “And if you look at the percentage of our ads business where people are using our most sophisticated approaches to finding the right audience, I think we still have a lot of opportunity for growth there, and that will improve both the quality of the ads people see but also the returns to marketers. And I think that will hit all of the verticals and all of the segments.”

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