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Review Volume & Velocity as Market Demand Signal

Use the quantity and frequency of Google Maps reviews as a proxy for market demand strength, where high volume + high velocity indicates healthy demand regardless of review sentiment

Decision Rule

Enter markets with hundreds of reviews monthly across multiple providers, even if average satisfaction is moderate, as this indicates strong customer demand and potential for service differentiation

How It Works

Reviews correlate with transaction volume, and review velocity indicates consistent ongoing demand rather than one-time events, providing more reliable market signal than traditional market research

Failure Modes

Seasonal businesses may show artificially low velocity during off-seasons

Very new niches may lack historical review data

Some high-value services generate few reviews due to privacy concerns

Review velocity can be gamed by businesses encouraging reviews

Example Decision

Choose garage organization services in Denver over pool cleaning in Phoenix because garage services show 300+ reviews monthly with consistent growth, while pool cleaning shows seasonal spikes but low winter activity