Social proof is a buzzword throughout social media today. And there is a reason for this – people value the opinions of others. This is especially true when it comes to making purchases online. In a recent survey by BrightLocal, it was found that 88% of consumers say they trust online reviews as much as a recommendation from a friend. Review site Yelp takes this power and runs with it.
In a study by BCG, businesses that set up a free account on Yelp generated approximately $8,000 more per year. Those that advertised reported more than a $23,000 annual increase in profit.
If you are a small- or medium-sized local business, learn why it’s a smart move to incorporate Yelp into your online marketing strategy.
A Beginner’s Guide to Yelp
Yelp is a local reviews site for businesses such as Manufacturing Directors Email Lists restaurants. A bars, clubs, beauty salons and retail outlets.
Founded in 2004 by Jeremy Stoppelman, the site now boasts 77 million unique visitors per month via desktop and 69 million mobile web visitors with an Alexa rank of 33 in the US.
The platform has had over 100 million reviews posted on it since its inception.
According to Social Media Examiner, “If you run a local business like a restaurant, Yelp should be an essential cornerstone of your online presence.” But it is not just the obvious small businesses that you can find on Yelp – financial services, medical services, and many others also use it to great effect.
A healthy Yelp profile can have a profound effect on your business. In a Harvard Business School study by Michael Luca, it was found that increasing a restaurant’s star rating could increase revenues 5–9%.
Who’s Using It?
The Yelp website has a useful table of user demographics taken from reports from comScore.
Image 1 (comscore demographics) YelpSource: Yelp
The majority of users are below the age of 55 while the largest demographic is in the 18–34 age range. This is probably due to this age group being part of the
“Google generation” – turning to the internet first for advice, and using their phones on the move more often than those who are older.
Yelp’s users are well educated with 59.5% of them having a
college education and 44% earning a salary of over $100,000 per year.
This is great news for the advertiser, especially if you are selling a high-end or luxury product. Higher income usually equals higher disposable income.