Yelp!, founded in 2004 , based in San Francisco and officially launched its website in all major west coast cities in August of 2005. Yelp.com is a website where consumers can leave reviews for restaurants and other businesses. Recently, a study by Michael Luca, a researcher at Harvard Business School discovered that positive Yelp! scores translate into real revenue increase for local restaurants but not for restaurant chains.
Alex Salkaver reported on Street Fight “that a one-star differential in ratings on the popular crowd-sourced review site can bump revenues by 5% to 9% at a local restaurant. This is not entirely surprising. What is more interesting is that chain restaurants did not benefit from any significant increase in profitability or revenue corresponding to Yelp ratings.”
On our online website www.BreakingStocktonNews.com, Yelp! reviews are part of the ticker tape news we come across regularly. These reviews are about 90% restaurant reviews and there are so many that we had reduce the feeds to report only twice in every six hour window. They are primarily on local restaurants.
Is Yelp! Only For Restaurant Reviews? Although they are the majority, other businesses participate and benefit from their Yelp! business accounts. First Priority Financial (Mortgage Banker/Broker) in Stockton, CA has a business account and they recently received a phone call from potential first time buyer. When asked how he found about their business, he mentioned he found them on Yelp!, liked their reviews, visited their website and decided to contact them.
Can Yelp! enhance your brand, create calls and increase revenue for local businesses? It sure can with the proper hyperlocal marketing.