Why yelp is loosing in macro and how they can prevent it.

AK
2 min readJul 18, 2020

So if you are involved in some kind of off line business with actual location and/or service you probably have a yelp page. Being an immigrant from a country where there is no such service as Yelp. At first I definitely appreciated it. It is especially useful when you are new and need recommendations to choose a certain location or service, like apartments to live in or restaurant to dine.

Basically the value that yelp gives is a third party review about mostly any business out there. The customers though are not the people who read reviews, their customers are businesses who pay to advertise on yelp. Not only is the business model awkward, because I don’t know anyone who would get a real client from advertising on yelp, since everyone looks only at reviews, no one ever checks ads. But also because yelp does not provide enough customer care.

However, I guess the structure that business is built in is biased. I understand that as all companies Yelp is also mostly interested in making profit. And since they are publicly traded companies now, they don’t care that much about the customer they work with, because now the boss is a shareholder, not a customer. However, you can not just spit into the pool where you get drinking water from. Yelp has a highly skilled sales team. But when you call them about a certain review that might be fake they literally have no one to take care of it. Gary Vee advices to try it but he also mentions that he is not a user himself:

Gary Vee admits that he is not a Yelp user himself.

Here are some business owners that strongly recommend not to advertise on Yelp.

I guess these are one of the reasons that yelp shares are going down, besides pandemic off course. Anyways, I am a fan of yelp. However, they need to fix their customer service. And the way to do this is just to hire as much CS reps as they are hiring for sales. It is very easy to check if a review is biased or it is true. All you need is just to call the person who wrote it and verify his/her identity. And if for some reason a person who wrote the review refuses to do this. Then there is a high chance of that review being a fake.

Hey guys,

Thank you for taking time and reading my work. If you might ever need an affordable and cozy home to stay in Southern California please make sure to check out our corporate housing companies webpage: www.az-housing.com We offer great, fully furnished properties for month to month and biweekly stays.

--

--

AK

Welcome to Hustly, where we discuss new business ideas and everything that goes on in life.