Yelp Gets a Bad Review: Embracing a Crisis to Shape Perception

by Brian Solis

This post highlights the nuances associated with crisis communications and not the merit of either case.

In the era of socialized media, brands and businesses are now vulnerable to a new era of influencers – their customers.

But what happens when the community that championed consumer experiences is accused of exploiting them to extort advertising dollars from the businesses affected by the reviews?

User generated reviews aren’t necessarily a brand new concept, epinions, Amazon, among any others have provided dedicated outlets for customers to share their experiences over the years so that other consumers could heed the words of their peers before making a purchase. The ability to integrate reviews at the point of purchase empowered consumers to contribute content as well as help them make more informed decisions – before the purchase.

Enter Yelp.com.

Yelp is an Amazon reviews fused with the Yellow Pages of local services and businesses. It empowered patrons and consumers alike to share experiences and sentiment associated with businesses, by locale, with other yelpers. Yahoo, City Guide, Trip Advisor, and other online properties have offered similar capabilities for a while, but Yelp connected people and experiences and built a dedicated community around them – whereas the other services organized experiences tied to somewhat isolated and explicit search results. Yelp connected people based on interests while giving them a voice that collectively could, in theory, influence a business to grow, adapt, participate, and learn.

Initially, businesses gasped at the popularity of Yelp. Most weren’t quite sure how to react – and still don’t to this day. Was it a threat? Was it wrong to empower customers to share negative and positive reviews together? Many businesses under estimated the socialization and amplification of experiences, and attempted to suppress them rather than address them. Others assumed the role of patrons and raved about their own services hoping to balance negative experiences or influence future contributions instead of simply embracing and responding to individuals, and/or evolving because of the interaction.

The same platform that can provide small businesses with visibility, a collaborative community, and new revenue opportunities can also affect their bottom line through negative commentary.