- Posted by Nigel Edelshain
- On September 25, 2012
Wondering what Yelp is and how it can affect your business?
Yelp is a rating site for businesses of all sorts, from restaurants to remodeling companies. Consumers can log in from their computer or smart phone to seek out suggestions of highly rated local businesses and leave their own ratings and reviews. Yelp has over 78 million visitors each month.
A recent study conducted by two economists at the University of California, Berkeley showed that Yelp ratings can directly impact a local business’s revenue. The researchers studied 300 restaurants in the San Francisco area. They found that a restaurant that moved from 3.0 stars to 3.5 stars in Yelp’s ratings went from selling out its prime dining times 13% of the time to selling out 34% of the time – a significant difference in revenue.