From Expedia to Electronic PODsPosted July 22, 2016
Community rating is a beautiful thing. It means that I can go to a hotel in Cambodia, sight unseen, and be fairly certain what I’m getting myself into. Expedia, Airbnb, Uber, TradeMe, and Amazon are examples of businesses that changed an entire industry by incorporating feedback from the buyer back to the seller and to other buyers.
The result is a comprehensive study of service level and quality beyond what any single company could achieve with its internal staff. Importantly, customer reviews and ratings haven’t eliminated two and three-star hotels but just forced them to adjust pricing accordingly.
Transparent, honest assessment of service level gets used by everyone:
- Buyers can assess how much they should expect to pay when they increase their service or quality expectations
- Market share shifts from the worst to the best performers in each service level niche
- Sellers can see their place in the rankings and make investments to increase service level as is justified by the increased rewards
It’s not hard to imagine the same dynamic at work in commercial transport. Quality and service are opaque today: taste-testing is the norm. As often as price, service disappointments break up a working relationship. Often that’s weak expectation setting, but other times it’s because each cargo owner or haulier can’t see how they look from the outside. Cargo owners, for example, may genuinely not realise how weak their data quality compares to their peers. And how could these issues be resolved before they become apparent?
The TNX value add is pretty clear: lower spend for cargo owners, higher return on assets for hauliers, and transparency to market dynamics for everyone. But sometimes it’s hard to explain how TNX gets to those benefits. If you find yourself struggling in this regard, try using the diagram below as a guide.
TNX combines the “everyone does business there” aspect of a marketplace, such as TradeMe.
Plus we do clever matching like an online dating website.
Plus we find the best rates for work, like an auction.