It's no secret that word of mouth recommendations and reviews are a powerful marketing force. 83% of consumers say online customer reviews influence their purchase decisions. Intended to highlight and quantify the value of Yelp for small businesses, Yelp's Revenue Estimator launched on March 25. The free tool generates estimated revenue from Yelp by calculating customer leads x average spend on a first customer visit, as reported by business owners in a survey by Boston Consulting Group, according to Matt Halprin, VP of Revenue and Analytics at Yelp.
The business owner can edit the average spend on first customer visit variable.
Customer leads include things like mapping directions to the business, placing a phone call from the Yelp app, purchasing a Yelp deal, bookmarking a business listing and making an OpenTable reservation.
"It's useful for any business owner, advertiser or not, as it makes it easier to see what revenue opportunity the businesses owner is seeing from Yelp already," said Halprin.
Star rating and number of reviews are not used in generating the estimated revenue, though the amount of reviews a business has affects the customer's purchase decision.
While it's frowned upon for businesses to beg for reviews, there are ways to prompt customers to write a review, as mentioned in How to get more positive online reviews for businesses with a conscience.
Give Brand Advocates the online tools to rate and review your business and direct them to Yelp to publish their review. Do not provide Advocates/reviewers with incentives or rewards, and let the reviews be authentic. Do not alter or edit reviews in any way, and published reviews on Yelp should come from the Advocates' accounts, not from someone within the company.
It's up to your customers to write about and review your business, and Zuberance makes it easy to provide your Advocates with the tools to do so.
Have you used Yelp's new Revenue Estimator? What was your first impression and do you have a plan to move the needle?