Groupon and Yelp: The Combo Works for Small Businesses

I am fascinated to watch the growth of a small business nearby our home: Dahn Yoga Center. They are masters of word of mouth, because they know how to create and share stories. They are also using new tools, such as Groupon and Yelp, to increase trials. 

Part of the ritual in classes is a tea ceremony at the end where happy members take a few minutes to sit down and share how they feel. Some talk about their aches, some talk about moments of enlightenment. Most of the time, the stories are positive, as the method increases and improves circulation, helps people stretch and coaches people to find that point of mental calm. Happy customers, happy business! The center has been getting a lot of new members through genuine, enthusiastic referrals. Friends bring other friends and family in, saying 'You must try this!'

Most recently, they participated in a Groupon deal, offering participants a significant discount on a 10-class card. As a result, the center in Brooklyn Heights got 17 sign ups, Manhattan locations saw 50 participants and Boston Cambridge area got more than 100 walk ins. Thinking about the college audience in Boston area who is hooked on social media and emerging platforms such as Groupon, the high level of participation in Cambridge makes sense. I was told the Boston area center is also doing really well on Yelp. So, people who saw the deal on Groupon were able to check out the real people stories and review the ratings on Yelp before making a final decision. 

The Brooklyn Heights center is going to rely on good service and honest stories to turn these trials into long-term members. I heard that one of the Groupon leads loves the classes so much that she is taking a cab from her far away home to the center for every class. That's dedication! And it is very promising. 

Posted via email from dotwom's posterous

Why Suing Over Customer Comments Doesn't Work

Customer reviews are the backbone of organic, online word of mouth. That's what many shoppers rely upon before making a purchasing decision. There are several case studies and research that show a solid connection between Web-based customer ratings tools and business growth.

Then there are those that post negative comments - based in truth or not. And those that sue them and the sites that host the comments, claiming the postings had a negative impact on their business. Recently, the social networking site Yelp, where users share local finds, was the subject of two lawsuits as such. A lawyer and a dentist attempted to sue people who wrote negative reviews about them on Yelp and the social networking site itself. The cases seem to have been settled. Yelp is not responsible for the negative posts, thanks to a safe harbor law.

These incidents draw more attention to the negative posts and create the opposite effect by generating more negative buzz than its worth. The negative news do not only affect the suing parties. They create a halo effect for those who want to raise their voices or provide balanced reviews to their online peers. If these types of lawsuits increase and get in the headlines, would consumers be as willing to post their honest opinions? Would they post at all?

Studies show that most online customer reviews are actually positive in nature. Those who post act out of concern for others. Businesses actually benefit from genuine comments on their products and services. The better way to respond to a negative comment online would be to juxtapose it with positive reviews and factual content. The better way to do business would be to do right by the customers and joining their conversations.