Owners Fed Up with Yelp’s Online Reviews

Are you trying to read the (fake?) newspaper article from our postcard mailer about Yelp and their treatment of businesses? Here it is in text form:

Business Owners Fed Up with Online Reviews –
Many Yelp for Help!


[pullquote]Business Owners Fed Up with Online Reviews – Many Yelp for Help! Sick of “one-star flamers,” or users who visit sites like Yelp just to write nasty stuff, owners are at their wit’s end. Some fight back with their own positive reviews, only to be hit by the Yelp filter. “Why do only the low rating reviews show up, when I have three times as many good ones?” asks Restaurant Group owner. Claims of extortion are rampant. When she inquired about a negative review full of inaccurate facts, Local Spa owner says Yelp told her “’Advertise with us, and we can help you with that’” But Yelp plays it cool. “Yelp is not and never has been a pay-to-play site,” Yelp spokeswoman say…. [/pullquote]



Better Ratings = MORE REVENUE!

Yelp and other online ratings are a NUISANCE for a business, but can not be ignored!

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  • 90% of consumers say they find online review sites a trustworthy source and check them before making new purchase decisions.

  • A harvard Business School study found that just a ONE-STAR rating decrease can reduce revenues by nearly 10%

  • On the flip side, 4 out of 4 consumers have changed a purchase decision based on negative information they found online.


Did you know: Filtered Ratings Can Be Unlocked?

Did you know: You Can Win More Business With Negative Reviews?

Did you know: There Are Other Ways To Show Ratings In Google?

[biginfopane color=”#ffa200″ textcolor=”#ffffff” href=”url” ]Want to see MORE revenue, for only a fraction invested?  Get your FREE analysis of your current standing and how much it can be improved. Leave your info below:  / /[/biginfopane]


What is One Half A Star On Yelp! Worth To Your Business?

What is One Half A Star (1/2 star) On Yelp! Worth To Your Business?

If your business has three stars on Yelp! what would be your sales to move up to 3 1/2?
If you are at 3 1/2, how much more money will you make at 4 stars?

Previously, we could only speculate. And since many believed nothing could be done about the ratings (at least on Yelp!), it was considered a fools errand to ask about ratings and revenues.

But now, with new research, we have to open up the discussion again.

Help with your Yelp! profile, ratings, strategy!

The study is around restaurants, and concludes that 19% MORE reservations may be had with only a 1/2 star increase in rating. This is largely due to the fact that Yelp! rounds the ratings to 1/2 point increments. So restaurants which may have nearly identical ratings, but fall on either side of the cutoff number – for instance 3.75, for 3.5 or 4 stars – will see markedly different results in their business.

From the study’s authors:

People who submit reviews to Yelp submit something which is 1, 2, 3, 4, or 5 stars. Yelp takes these together and aggregates them to create an average rating for each restaurant. Then, it rounds that average rating to the half-star level. So restaurants are displayed with 3, 3.5, or 4 stars.
The true average rating, of course, is continuous and could be any number between 1 and 5 – so for example there are some restaurants have true ratings of 3.74, while others have a true rating of 3.76. We might think these restaurants are pretty similar in terms of food quality, service, etc. – whatever people take into consideration when making a review, they’ve ultimately reviewed these two restaurants almost exactly the same. But because Yelp rounds its ratings, the 3.74 restaurant will be displayed as 3.5 stars, while the 3.76 restaurant will be displayed as 4 stars. By making comparisons like that, we can see where there are differences in reservation availability between two restaurants which are almost exactly the same in terms of how customers review them, but which look very different on Yelp. It’s these types of comparisons which let us say that the only “real” difference between these two restaurants is Yelp – and when we compare restaurants like these, we see that the restaurants which just barely get 4 stars sell out about 19% more frequently than restaurants which almost get 4 stars. This is what lets us infer causality.

And this effect is no doubt similar in other, non-restaurant, businesses.

The good news is a business can work to improve their rating, and if only a few hundredths of a point away from the cutoff number, they can see a whole 1/2 point jump in the stars.

Additionally, A Nielsen survey revealed that 82% of Yelp users visit the site when preparing to spend money at a local business, and a Harvard study found that a 1-star increase in Yelp rating can lead to a 5 – 9% increase in revenue for a restaurant.

Can Google Offers pull it off?

Can Google Offers pull it off?

Everyone’s questioning whether Google offers will be able to execute like Groupon. Google has launched in Portland OR so far (beta), and we’re keeping an eye on it.

This latest offer show’s they can sell enough to crush it just like Groupon.

Mississippi Studios and Bar Bar
$7 for $20 towards food, drinks or an advance show ticket at Mississippi Studios and Bar Bar
Organic burgers and inventive cocktails
Music venue with live, ticketed shows
Patio summer series with free performances


There’s more to say of course, but they have the fundamental piece – real B2C sales.