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During social growth on the web, we have come to trust each other’s opinions. Our purchase decisions have long expanded from just being influenced by friends and family members, and now we rely on total strangers. Review sites like Yelp give consumers a respectable platform to express experiences, whether they are good or bad. They have no limitations on the types of industries which we can express our like or dislike.
For consumers, this type of social sharing has given us a hub to preview what a business is like without ever having to step foot within the store. Businesses can now can gain feedback on how they are doing in a scalable manner which will quickly alert them if they have internal issues they need to improve on or if they are doing a good job.
Local businesses sure could use a little more information about how much a social review site helps or hinders their lead generation, and Yelp has enabled a new Revenue Estimation tool to do just that. According to Boston Consulting Group study, free Yelp business accounts on average earn $8,000 in annual revenue from Yelp. For advertisers, this figure was more than $23,000. But how would a business be able to properly track that easily?
Yelp now provides a tool that will help your Yelp business account see its increase or decrease in revenue as a result of Yelp by comparing the national average from the survey. Evey Yelp business account now has access to this free Revenue Estimation tool to help them better understand how Yelp works for their particular business.
How does the new Revenue Estimation tool for local businesses work?
The Yelp Revenue Estimation tool does the math by multiplying customer leads sent by its site on a monthly basis with the business’s average revenue per customer lead. Using the Boston Consulting Group study, Yelp also includes the average spend per customer for each business category.
2 ways the new Yelp Revenue Estimation tool is helpful for local businesses -
1. It helps local businesses measure lead generation that Yelp is already sending.
2. It provides advertisers with a referenced baseline which will help them measure their impact of advertising on Yelp. This is especially helpful for potential advertisers.
Every advertiser knows that no matter where you display your business, you want the ultimate return on investment (ROI) – one that can help you justify your business’s presence there, as well as the time, effort and money that you’ve spent online to generate possible leads. Now, with Yelp’s new Revenue Estimation tool, you have a better way of tracking what the site can financially bring to your business.