The internet has ushered in an era where feedback can be obtained from anything. From your local pizza joint to an electronic toothbrush (if at all it exists), you can find possibly find a review about it.
And consumers love using online reviews to make pre-purchase decisions. Recent research shows that a staggering 91% of consumers regularly read online reviews before making any pre-purchase decisions. If you still that online reviews usually get lost in the Internet noise, then you should rethink again.
The same survey shows that a whopping 84% of consumers are likely to trust online reviews just as much as personal recommendations. And they likely make that pre-purchase decision fast: 68% of them are more likely to form an opinion after just reading between one and eight reviews.
Despite the statistics, a new trend is emerging where opinions don’t represent the reality of the organisation. Low consumer involvement in the rating processes, content reviews which are paid for, and many hurdles facing online reviews mean customers aren’t getting value for their money.
Rateonium—an anonymised consumer-organisation review platform based on Blockchain technology—intends to flip this current model on its head. Rateonium believes it can create a transparent ecosystem where online reviews reveal the reality of the situation on the ground.
What problems is Rateonium solving?
The consumer market continues to spend billions of dollars on ad campaigns in an attempt to reach their audience. According to Marketingland.com, for every USD 1 of online revenue influenced by online reviews, the impact is multiplied offline in the tune of four to five times.
However, a consumer’s mind is more likely to trust sources that are not influenced by commercial interests. According to the research, consumers from developing countries are taking word-of-mouth more seriously than advertising messages during pre-purchase decision making.
Whereas the internet gives a voice to all, misinformation and foul play have become to be accepted as a reality of the landscape. Today, more and more consumers are joining the online review bandwagon to make pre-purchase decisions, the industry is fraught with fraudulent cases where companies either freelancers are paid to create content reviews or bots are designed to generate automated reviews.
For instance, in 2016, Amazon filed a lawsuit against Buyamazonreviews.info and Amazonverifiedreviews.com after discovering that these companies are selling fake reviews. These companies were promising to provide their users with “verified” reviews by incentivising them with products in exchange for reviews.
On freelance websites such as Upwork and Freelancer, SEO (Search Engine Optimisation) experts are ready to review products for as little as USD 5 per hour. In Russia, the price of fake feedback of about 300 to 500 words is roughly USD 1.59.
It is as a result of these challenges that more consumers are turning to word of mouth as opposed to online reviews. Word of mouth recommendations is deemed to be reliable and independent. Therefore consumers are more likely to trust them compared to online reviews coming from affiliated websites like expert opinions and advertising messages.
But we can’t resolve to go back to word of mouth reviews in today’s complex, fast-paced and ever-evolving environment dictated by technology. Now, more than ever, customers and companies need trustworthy and quality feedbacks. Trawling through the garbage of online forums is not in the best interest for long term survival of the industry.
The most likely outcome of the online reviews fraud plague is increased investment in the technology itself.
That is where Blockchain comes in.
Currently, Blockchain is the only technology which can provide trust to online ratings and reviews by:
- Providing full transparency for product reviewers and their identities;
- Providing a decentralised platform that cannot be manipulated;
- Creating smart contracts which build reliable content; and
- Generating value for online reviews in the form of tokens.
What is Rateonium?
Rateonium is the world’s first platform for online reviews and ratings based on the Blockchain technology. The platform utilises the Blockchain’s immutability principle to generate the required transparency and create conditions reviewers to profit from offering quality reviews as well as directly interacting with consumers and providers in an entirely trustless manner.
Rateonium takes the possibility of corruption and bias out of the online reviews equation, with an end-to-end process that is designed to pick out only quality feedback and then protect it by immutably storing on the Blockchain. All the incoming online reviews must pass through Rateonium’s AI-based system that analyses any unconstructive language and emotional language.
How it works
The basic concept surrounding the Rateonium platform is creating an internal cryptocurrency where registered users receive when they submit an online review about a company. This currency is traded for rewards from the participating organisations. As such, users can redeem rewards by doing everyday tasks with no extra effort or cost.
The underlying motivation to submit online reviews (daily rating motion), is to uphold by the incentives of quickly accessible rewards continually. These rewards vary from firm to firm and can always be customised. The volume of Rateonium tokens to be traded is based on the size of the reward.
Rateonium confirms the quality of the online reviews before the tokens can activate in the application. Contracting partner firms are also incorporated in the Rateonium platform through a subscription system. The basic monthly fee on the platform is based on the number of branches that have been integrated into the system and the revenue obtained per branch.
With the broad range of cooperation partners which have already been verified in addition to other interested participants, Rateonium can leverage the exact subscription fees and develop long-term plans for the firms and make meaningful ROI.
For online storefronts, the subscription fee is based on the appraisal of the firm’s economic strength, which may vary from one company to the other according to the size and number of regions served.
For consumers, the positive experience of obtaining free rewards increases the likelihood that they will provide an emotional-based and long-term relationship with the firm. Rateonium will, therefore, to change consumer relations in the long term by setting new global standards.
To prevent a lack of practicality which may be caused by fluctuating exchange rates, the Rateonium Platform has the two different tokens: Rateonium and Ratec. While the former can only be used to redeem rewards (cannot be traded), the latter can be traded on major crypto-exchanges.
Quality ratings and revenue are invaluable to both customers and businesses, yet popular platforms have allowed the creation of fake reviews. Today, getting a quality source of advice is as good (and rare) as gold. Rateonium is creating the next generation online review backed by AI and Blockchain as an innovative solution to fake reviews.