"Managing User-Generated Reviews" - Jed Nachman (Yelp) - 2009 AIM Conference

The train has left the station…

We started with user reviews in 2005

Consumers value online reviews… … which is why every major site and local guide has them.

• 61% of searchers find reviews and ratings to be important on the local level

• 92% of Internet users have researched a product or service online, then purchased offline from a local business at least once

Source: WebVisible and Nielsen//NetRatings Survey, September 2007

ROBO (research online buy offline)

Online reviews second only to word of mouth in purchase influence

Source: Rubicon Consulting Influence of various sources of information on purchasing

Local search influences purchasing decisions

The web isn’t just for ecommerce, 78% have researched a product or service online, only to make a purchase offline from a local business.

4% strongly disagree

55% somewhat agree

23% strongly agree

18% somewhat disagree

Source: WebVisible and Nielsen//NetRatings Survey, September 2007

Consumers actively seeking local information

In Web Search the problem too much content…in Local Search the problem is too little content.

Sources: Google’s official blog, Yelp Index, Analyst Greg Sterling August 2008, Yelp analysis

It all starts with the your customers

your customers

readers reviews

Search engine optimization

Case study: chain store profiles on Yelp

Average Monthly Traffic & Reviews by Store(24,000 customers last month)

5 million local reviews and counting

Local Reviews(millions)

Business Categories

Small businesses value online reviews

85% of Yelp reviews are positive

Negative reviews play an important role too• A variety of experiences is consistent with real life• You can’t please 100% of your customers 100% of the time

Distribution of All Reviews

You can bury your head in the sand…

Or you can embrace the new reality

What not to do: argue with your customers

Your reviewers are your paying customers

“I received the following PM from the owner of this place:

'dont eat out'I've never met you but after reading

your review I don't want to. You seem boring and have none of the qualities I request in a human. If I

was introduced to you on the street I guess I would say hi, nice to meet

you, but I would not mean it”

Your reviewers are human beings with (sometimes

unpredictable) feelings and sensitivities

Your reviewers are vocal and opinionated (otherwise they would not be writing reviews!)

What to do: be authentic and friendly

Subject: Sorry about your visit with us...

Hello Jen,

I know there are no excuses for bad service... I am working hard at fixing our current problems. Thanks for the helpful review...most owners would never say that, but I need constructive input from our "real" customers. I don't know who the other reviewers are but I would hope it is how the people really feel about my business. I hope you give us another shot as I am in the process of getting more beers and better bartenders. Please feel free to contact me with any constructive input anytime.

ThanksBill XXXXXX(owner)415-283-6764

Ah! You acknowledge upfront that I was in the

right.

Wow! You really care about what I thought and wrote. And you even made changes.

This seems like a really thoughtful and pleasant business owner.

Maybe I did just catch them on a bad day…..

Good customer service pays for itself

Amount Consumers Willing to Spend for 5-Star ServiceOctober 12-18, 2007Source: comScore, Inc./The Kelsey Group

Service (Suggested Average Price)Excellent (5 Stars)

Good(4 Stars) Lift

Restaurant Meal ($20) $37.95 $25.44 49%

Restaurant Meal ($50) $59.93 $41.40 45%

Hotel ($100) $137.36 $99.73 38%

Home ($250) $252.15 $209.50 20%

Travel ($350) $366.72 $299.81 22%

Legal ($60) $104.36 $52.51 99%

Medical ($15) $29.67 $23.54 26%

Central dashboard

Privately message your customers. It’s free.

Publicly comment on a review. New free feature.

Local search advertising

The opportunity

Be aware of all the places where your customers are talking about you online.

Read all of the feedback and look for trends

Engage in constructive conversation with your customers

"Managing User-Generated Reviews" - Jed Nachman (Yelp) - 2009 AIM Conference

Technology

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