To me one of the most important aspects of online social media is the ability it gives us to quickly share information with people regardless of their immediate location or even whether or not we actually know them. This unique ability is in many ways a double-edged sword for companies: on one hand when something positive is said about the company or its product the news spread around quickly and without much effort on the company’s side. However if someone is dissatisfied with the company or the product that information could spread like wild fire as well.
As a general rule people tend to trust peer information more than what’s coming through direct company channels as they view it as more genuine and unbiased. Before the rise of the local search sites one would have to call up friends/family to get an opinion on what restaurant to choose for that all important date… now all you need to do is go on Yelp!
With over 12 million monthly UVs (based on date from compete.com) Yelp.com is an undisputed leader among local review/search sites. As most companies in that space it is fairly young with a little over 4 years of operating experience under their belt; but considering that traffic to the site grew 2x over the past 12 months they are well on their way and show no signs of slowing down. As seen from the graph below, despite being the “new kid on the block”, Yelp has already started to edge out incumbents like YellowPages and SuperPages. Further on, none of the pure review sites (e.g. UrbanSpoon, Zagat etc.) come anywhere near Yelp’s traffic, number of reviews or site management effectiveness.
Monthly Unique Visitor Traffic to local review/local search sites Feb.2010-Dec.2010
One unique quality about local search sites in general (and Yelp in particular) is the combination of local reviews and social networking functionality which creates an online community but on a local rather than global level. The reputation system is created for both, businesses and Yelp users containing information such as number of “stars” (for businesses), most popular/respected reviews (for users). Users are motivated to continue contributing due to effective peer feedback mechanisms, placement of popular reviews on the business sites/newsletters etc. Moreover having your business reviewed and listed on local review/search site provides an additional online outlet for people to be exposed to the brand and/or business (whether through direct, search or even ad referrals)
The heavy focus on “local”, as well as the ever-expanding influence (people are starting to use Yelp and other local search websites to find doctors, lawyers, mechanics etc) makes it essential for businesses (especially those operating on a more local level) to pay close attention to the channel.
So what should businesses do to effectively engage with Yelp (and other local search sites)? I do not claim to an expert but here are a couple of thoughts/ideas:
-> Make sure you are on Yelp! (NSS, I know…)
Besides being the fastest growing and one of the most respected Yelp also seems to know their way around SEO (search engine optimization). Yelp results consistently come up as top-5 natural search results, which is helped in part by their “simple word” URL structure
Yelp search results for "Athan's Bakery": map with exact location
-> Keep tabs on your reviews
Needless to say why this is important… Knowing firsthand what customers think of the business, what they like/dislike is immensely valuable. The mantra “listen to your customers” has never been easier to achieve since for the most part local review site members are very open and honest about their reviews as they view local review/search sites as an unbiased and informal environment to share their experiences
-> When Yelp! throws you lemons…
No matter how good your business is some people would be dissatisfied. Maybe they had a bad day, maybe you had a bad day or maybe this just wasn’t a good fit. It happens. The key is to take this set back and turn it into an opportunity. Honestly and prompt response to comments (especially negative ones) is an excellent opportunity to show commitment and dedication to business and customer service
My favorite nail salon owner Michelle's answer to a negative review: prompt, apologetic, courteous
-> Use the “power of the coupon”
Everybody likes a good deal. Putting special promotions on Yelp and other local search sites would
help provide an additional incentive to choose your business over someone else’s… (now, of course, having a rating that’s over 2 stars might be more important in this specific case)
Amelia's Kitchen review leave a lot to be desired but the 15% the total bill may give patrons a reason to give it another shot
-> Use “sponsored searchers”
The upside? Sponsored searches appear at the very top of the search results list so this is often the first place shoppers are tempted to click (this is pretty much like being the first person in a very long queue). The downside? This costs money.
Notice how the top (i.e. Sponsored) result is highlighted but barely so... most people won't even realize they clicked on a sponsored search result
-> Use the power of their brand
Official Yelp sticker: to get one the business has to maintain at least a 3.5 star rating