The Power of Human Curation and Growth Strategies for Marketplaces

The Power of Human Curation and Growth Strategies for Marketplaces

Introduction:

In the digital age, where information overload is a constant challenge, human curation has emerged as a crucial element in navigating through the vastness of available content. While algorithms powered by AI can curate large chunks of information, the future of content lies in human-to-human interaction. This article explores the significance of human curation and delves into growth frameworks for marketplaces.

The Importance of Human Curation:

Curators act as bridges, curating relevant information for users and helping them make sense of the overwhelming amount of content. In 2021 alone, the creator economy witnessed a record funding of $1.3 billion, highlighting the growing demand for curated content. Despite the rise of AI algorithms, human-to-human interaction always triumphs over the logic of algorithms. Curation is one of the three essential aspects of information commerce, alongside creation and consumption. It requires time and attention to sift through numerous articles and posts to recommend valuable information. As the founder of Glasp, I firmly believe that the future lies in the intersection of content curation, knowledge management, and community.

Growth Frameworks for Marketplaces:

Building a successful marketplace involves understanding and addressing the constraints to growth. The biggest constraint can either be a lack of demand or a lack of supply. To determine which side is more constrained, marketplace founders should consider their mid-term concerns and where they anticipate spending more time and resources in the long term.

1. Supply-Constrained Marketplaces:

If your marketplace is supply-constrained, the priority should be on growing the supply side. This involves finding ways to transform infrequent engagement from suppliers into "power sellers" or "power users." The goal is to increase the number of transactions with these suppliers, making your platform their primary channel and source of income. Deepening the relationship enables suppliers to understand the platform's norms and specific customer needs, enhancing user and customer experiences. It is crucial to thoroughly understand the unit economics and lifetime value (LTV) of supply-side acquisition. Start by capturing more demand with the same or similar types of supply, and gradually expand into adjacent categories once dominance is achieved.

2. Demand-Constrained Marketplaces:

For marketplaces facing demand constraints, the focus should be on product innovation and expansion to attract and capture more users. Global network effects are appealing as the value to consumers in such marketplaces depends on the total number of users. However, expanding into new geographies too early can leave local marketplaces vulnerable. Local marketplaces can be highly defensible, but strategic geographic expansion is essential. Achieving market leadership in the constrained side of the market in one geography before rapid replication in other areas is a common strategy. DoorDash, for example, initially captured less competitive suburban markets, acquiring users who retained better and made more purchases per transaction. These suburban markets now serve as DoorDash's cash cows.

Actionable Advice:

• 1. Prioritize the human element in content curation: While algorithms have their place, human curation provides a unique touch that facilitates meaningful connections between users and valuable information.

• 2. Identify and address growth constraints: Understand whether your marketplace is supply-constrained or demand-constrained to develop targeted growth strategies. Deepening relationships with suppliers and capturing more demand can fuel marketplace expansion.

• 3. Scale strategically: Whether operating in local or global markets, scaling plays a crucial role. Local marketplaces should focus on becoming the dominant player in their current market before expanding, while global marketplaces must prioritize rapid growth to defend their turf and prevent competitors from capturing valuable supply.

Conclusion:

In the ever-evolving digital landscape, human curation remains a vital aspect of content consumption. As the creator economy continues to flourish, the role of curators becomes even more significant. Simultaneously, marketplace founders must navigate growth constraints and adopt suitable strategies to ensure sustained success. By prioritizing the human element, understanding growth frameworks, and scaling strategically, both human curation and marketplace growth can thrive in the digital ecosystem.