David Brennan

Reputation marketing and building a good online reputation are critically important. However, they are not stand alone growth strategies. Reputation marketing yields the most positive returns when coupled with other online and offline marketing efforts since the effectiveness of these efforts are increased by a good reputation.

Increasing numbers of review websites such as Yelp, are gaining credibility and influence over consumer purchasing decisions. This has attracted the attention of Harvard Business School which conducted a study of online reviews and their effects on restaurants. The study found that a one star increase in Yelp rating led to a 5-7% increase in restaurant revenue, which was a major impact on local restaurants and very little on big chains. A similar study done at UC Berkeley reports that a half star improvement on a five star rating could make it 30-49% more likely that a restaurant will sell out its evening seats.

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