While individual diners may claim Yelp doesn't influence their decisions, the data shows that reviews play a huge role in where people eat. A 2011 study by Harvard Business School assistant professor Michael Luca found that a one-star increase in a restaurant's Yelp rating leads to a 5-9 percent increase in revenue. This effect held true for independent restaurants but not chains, Luca found. Yet it's tricky for restaurant owners to encourage positive reviews without openly asking for them. And what should they do about the inevitable bad review on Yelp and other sites? Here are a few pointers.
Customer service is key
Yelp's own research has found that the quality of a business's customer service is enormously important in tipping the scales toward a positive or negative review. When Yelp users mention good customer service, they're more than five times as likely to give a five-star review compared to a single star. And, Yelp says, almost 70 percent of reviews describing poor customer service get only one star. This suggests that restaurants can encourage positive reviews simply by focusing on service. Owners can also identify common online complaints and retrain staff to address those issues.
No begging allowed
Yelp doesn't want companies to bug its customers. "We recommend that people focus on awareness rather than asking for reviews," a Yelp exec told Mashable in 2012, because customers don't want to be treated as "a promotional vehicle."
Play fair
Not only are fake reviews illegal and unethical, but they can sink a company's reputation. In late 2013, the New York State Attorney General's office announced it was investigating 19 companies for writing or soliciting fake reviews, either about themselves or client businesses. The 19 companies, which included a day spa, a nightclub and a dental office, were shamed publicly and fined a total of $350,000. Yelp conducts its own investigations, too, and issues Consumer Alerts when it finds companies trying to buy reviews.
Create relationships
Social media's not just a way to post food pictures and happy hour specials. It should be the primary way a restaurant keeps in touch with its customers. This could include sharing pictures of customers and their celebrations (with permission) and stories from behind the scenes. Restaurants that take the time to build relationships online soon find themselves with a cadre of loyal defenders.
It’s ok to respond, but do it calmly
Yelp allows — and encourages — restaurant owners to leave comments on reviews, which can be a powerful marketing tool when used wisely. Owners should use this ability to thank users for positive reviews and thoughtfully respond to negative ones. But it won't do any good to cut and paste a response such as, "Thank you for your feedback. We're constantly working to improve our customer experience." Users want to know that an owner's paying attention to complaints and specifically addressing them.
The customer is NOT always right
If the reviewer is omitting essential facts or exaggerating an incident, the manager or owner should correct the account in a straightforward, cordial way. Owners must remember, too, that readers of reviews can draw their own conclusions. If a review comes across as hypercritical, snide or snarky, readers will probably assume the writer's the one with the problem.
Learn to laugh it off
"Who eats that kind of food? Bone marrow & wild boar? Yucky!" one reviewer wrote about Michelin-starred Longman & Eagle in Chicago. The restaurant got the last laugh by turning excerpts from the review into a clever marketing postcard.
If you have an interesting story about online reviews, about customer ambassadors promoting your business, or some recipes you would like to share with the rest of the HBC community, we would love to hear from you. The best stories will reference your name and your establishment, and could garner you some national or even international publicity. Please share your stories here.
