Monday, April 16, 2007

Yelp! Friend or Foe?


While sitting in the headquarter offices of Chordiant Software (automation software for service-oriented businesses), I recall a statistic they posted in their lobby. If my memory serves me correctly, the stat mentioned that 98% of customers do not log a formal complaint to the business after a bad customer experience. So what happens to these upset customers? Well they probably tell 10 of their friends about their poor customer experience and spend their money elsewhere.

That was pre-Yelp. Now that same customer logs onto Yelp and tells the other million plus Yelpers in delightly colorful proses of their consumer mis-experience. I am sure that 98% will continue to drop as customers find how loudly they can speak with one sharply-written Yelp review. Yes, the proverbial "pen" is mightier than the sword.

Business owners can do two things: closer your eyes and hope that Yelp goes away (not bloody likely), or embrace the invaluable, direct feedback that Yelp provides. Marketing people spend googlezillions of dollars collecting customer feedback, market research and surveys.

Here is a free tool to improve your customer service and business operations! The Yelp reviews are extremely detailed, so you can see which of your baristas or servers you need to re-train or perhaps even part ways with.

So business owners, save your yellow page advertising funds and utilize those funds in solving your operational or service weak spots. You can win more business and better yet, repeat business by getting that extra star on your Yelp ratings. Now the question of how many user reviews do we really need for one falafel house? That is another discussion altogether.

0 comments: