Business model of Trustpilot

Customer Segments

Trustpilot has a segmented market business model, with customer segments having slightly different needs. Its customer groups are as follows:

• Consumers: Individuals who want to post reviews about businesses for others to see.
• Businesses: Organizations that want to obtain and monitor reviews about themselves from customers.

Value Proposition

Trustpilot offers five primary value propositions: accessibility, customization, performance, risk reduction, and brand/status.

The company creates accessibility by enabling anyone to post a review of a business on its site for free (though they must have a Facebook account or e-mail address). It also allows businesses to set up a profile for free to encourage customers to post reviews for them and to view review analytics.

The company offers customization by providing five different versions of its website for specific regions: Denmark, France, Germany, the United Kingdom, and the United States. It also offers e-mail templates that businesses can personalize to create messages inviting customers to post reviews.

The company has demonstrated strong performance by helping companies improve and promote their business. Positive outcomes for various clients include the following:

• Search engines Bing and Google used Trustpilot reviews to add seller and product ratings to their online ads, increasing click-through rates by an average of 17%
• Mazuma Mobile used Trustpilot reviews to address customer concerns and now has 100,000+ positive comments
• High Position, a digital agency, set up a split test using Trustpilot’s TrustBox widgets on its website, and saw product sales increase by 58%
• com set up a split test and discovered that including Trustpilot reviews on its website increased their conversion rate by 15.42% and their average basket size by 22%

The company reduces risk by creating transparency and checking for accuracy. All customer reviews are open to the general public and uncensored. Before a review is published, Trustpilot requires the customer to submit proof of purchase of the product/service. If a response is not received within a given period, the review is discarded. This helps to ensure the authenticity of site feedback.

The company has established a powerful brand because of its success. It touts itself as Europe’s biggest and fastest-growing consumer review website. It hosts more than 20 million reviews in 39+ languages of more than 130,000 companies in over 119 countries. Over 700,000 reviews are submitted monthly. Trustpilot’s prominent business clients include Dior, HomeAway, Travelex, Wordpress, JustFab, ForRent.com, Trugreen, Telenor, Boohoo, Hostelworld, Expert, and Bestseller.

Channels

Trustpilot’s main channel is its website, through which it acquires most customers. The company promotes its offering through its social media pages.

Customer Relationships

Trustpilot’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the website while having limited interaction with employees. The company’s website includes a number of self-help resources, including articles, infographics, presentations, case studies, guides, and answers to frequently asked questions. That said, there is also a personal assistance component in the form of e-mail support.

Key Activities

Trustpilot’s business model entails maintaining a robust platform for consumers and businesses. The platform includes its website and mobile apps.

Key Partners

Trustpilot invites service firms such as marketing agencies to join it in partnership to better promote their clients’ businesses. The firms can refer their clients to Trustpilot to obtain customer reviews. Afterwards, the firms receive a number of benefits, including revenue share on converted referrals, co-marketing opportunities, and the opportunity to manage the client’s Trustpilot account. Specific partners include 3Q Digital, Ascensor, Bespoke, and Wpromote.

Key Resources

Trustpilot’s main resource is its staff of editors, who monitor reviews for authenticity and establish TrustScores for businesses based on the feedback. The company also relies on technology staff to update its website, marketing staff for promotion, and customer service staff for support. Lastly, as a startup it has relied heavily on funding from outside parties, raising $116.9 million from six investors as of May 2015.

Cost Structure

Trustpilot has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is likely sales/marketing, a fixed expense. Other major drivers are in the areas of administration and customer support/operations.

Revenue Streams

Trustpilot has one revenue stream: the subscription fees it charges businesses for access to enhanced services. Specific plans are as follows:

Lite – An entry-level option whose main goal is increasing customer satisfaction. Companies can collect and display reviews on-site and improve advertising ROI. Pricing starts at $599 monthly.

Pro – An option for growing companies whose main goal is to drive traffic and increase conversions. Companies have all of the benefits of the Lite plan, and can also improve website conversion rates, make data-driven business decisions, and expand their social media presence. Trustpilot must be contacted directly for a price quote.

Enterprise - An option for firms needing enhanced data protection and enterprise-level account management. Companies have all the benefits of the Pro plan and can also receive complete customization, comprehensive account management, and integration with in-house business tools. Trustpilot must be contacted directly for a price quote.