How Yelp Can Help!

HOW YELP CAN HELP SMALL BUSINESSES TAKE ADVANTAGE OF RAVE REVIEWS Yelp can be a scary place for some small businesses, but don't fear the unknown. In reality, just having a presence on the review site can bolster customer awareness and provide small businesses with new customer insights. Here, we look at how small businesses can benefit from consumers' love affair with the review site. YELP REVIEWS ARE TRUSTED REVIEWS Consumers consider Yelp a trusted source for reviews and opinions. 90% of Yelp users say positive reviews impact their company buying choices. 72% of consumers trust online reviews as much as personal recommendations. When deciding what businesses to go to, customers based their choices on: 44% Text Reviews Business 26% Ratings Quantity of Reviews 17% Reviews from Friends 14% or Family 93% YELP = PURCHASES Yelp is a powerful deciding factor for many consumers. Reviews and ratings heavily inform where and what they choose to purchase. of people who conduct research on review sites typically make purchases at the businesses they look up. Top Business Types Regularly Searched on Yelp: 30% 25% Real Estate Arts and Entertainment Financial Health and Medical 42% 40% 43% 43% Services 51% Auto 57% Hotels and Travel 60% Professional Services Pets Shopping Home/Local Services 65% 63% 78% Nightlife Food Beauty and Spa Restaurants Small businesses are taking note of the rise in consumer demand for online information. Today, 66% of small businesses spend more time on social media sites, compared to a year ago. SMALL BUSINESSES, BIG BENEFITS This general rise in social media use has enabled more small businesses to attract customers Based on a 2012 survey by Vertical Response, based solely on recommendations. 90% were on Facebook 70% were on Twitter According to a recent survey conducted by Boston Consulting Group, small businesses that took advantage of Yelp business accounts saw an increase in annual revenue. YELP = $ $ $8.000 Average increase in annual revenue for small businesses with Yelp accounts Average increase in annual revenue for small business that paid to advertise on Yelp $. $23,000 A Research team at UC Berkeley discovered that a restaurant's chance of selling out during prime dining times jumps from 13% to 34% when increased from 3 to 3.5 stars. Those odds climb another 19% when recommendations hit 4 stars. REACH FOR THE STARS: THEY MAKE A DIFFERENCE Restaurant's chance of selling out: 13% **** 34% **** 53% HOWEVER, CHANGING THE MERCHANT WAREHOUSE FOUND THAT NOT EVERYONE IS TAKING ADVANTAGE WAY SMALL BUSINESS OF THE REVIEW SITE'S OPPORTUNITIESS. DOES BUSINESS In addition to increasing revenue, a March 2013 Merchant Warehouse survey of 812 small businesses found that many companies are seeing increased customer awareness since joining Yelp. 22% 87% 77% of small businesses that use Yelp say the site has changed the way they respond to customer issues and complaints. of small businesses with Yelp pages have never actually looked at their pages at all. of small businesses surveyed don't actively use review sites like Yelp. With this kind of free crowdsourcing, small businesses can gauge what their customers want for free. Review sites like Yelp pose big growth opportunities for small businesses that use them strategically. Consumer demand for online reviews and recommendations can mean huge benefits for small businesses that present even a small level of online presence to interact with customers, build customer awareness, promote their brands, and engage in customer conflict resolution-all for free. WHY NOT TAKE ADVANTAGE? Merchant Warehouse MERCHANT WAREHOUSE I YELP I BCG PERSPECTIVES I SEARCHENGINELAND I UCBERKELEY I VERTICAL RESPONSE I SOURCES: DIMENSIONAL RESEARCH