Introduction
Determining the north star metric for Yelp requires a deep understanding of the platform's core value proposition and its strategic objectives. To approach this product success metrics problem effectively, I will follow a simple product success metric framework. I'll cover core metrics, supporting indicators, and risk factors while considering all key stakeholders.
I'll follow a simple success metrics framework covering product context, success metrics hierarchy.
Step 1
Product Context
Yelp is a crowd-sourced local business review and social networking platform. It allows users to search for local businesses, read and write reviews, and interact with other users. Key stakeholders include:
- Users (consumers) - seeking reliable information about local businesses
- Business owners - looking to attract customers and manage their online reputation
- Advertisers - wanting to reach potential customers
- Yelp itself - aiming to grow its user base and revenue
User flow typically involves:
- Search for a business or category
- Browse listings and read reviews
- Make a decision (e.g., visit a business, make a reservation)
- Optionally write a review after visiting
Yelp's strategy focuses on being the go-to platform for local business information and reviews. It competes with Google Reviews, TripAdvisor, and Facebook for local recommendations. Yelp is in a mature stage of its product lifecycle, focusing on maintaining its user base and expanding revenue streams.
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