Positive Yelp Ratings Can Boost a Restaurant’s Nightly Reservations by 19%


happy diners

Customer reviews travel far in the age of tweets and mobile check-ins. As more foodies come to rely on word-of-mouth reviews, Yelp’s system of ratings can make or break a restaurant.

Economists at the University of California, Berkeley published the results of a study, examining the effects of Yelp’s online ratings in this month’s Economic Journal. The study shows a slight half-star improvement in ratings can increase a restaurant’s business during peak dining hours by 19%.

Berkeley professors Michael Anderson and Jeremy Magruder found that “Yelp ratings affect both customer flows and the probability of booking a reservation.” The researchers compared the digital word-of-mouth revi…
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More About: Social Media, apps, yelp

via Mashable! http://mashable.com/2012/09/03/yelp-ratings-study/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Mashable+%28Mashable%29

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