Do Groupons harm your reputation? YES! (sorry)23 Feb 2016, by Kamron Karington in Marketing, Yelp
Turns out, trashing your profits and your reputation has never been easier.
Just put out a Groupon (Living Social, whatever).
Three scientists from Boston University and Harvard analyzed 7 million Yelp reviews, finding that businesses...
"...tend to see Yelp rankings decrease after offering a Groupon deal."
The study further added: "Groupon subscribers write significantly more Yelp posts than non-Groupon reviewers..." "They also have significantly more friends on Yelp and they tend to write longer reviews that are more often voted by other Yelp users as being funny, useful or cool."
Since Groupon users consistently rate businesses lower, the damage extends way beyond the initial financial loss on the deal.
Here's the deal (pardon the pun)... discounts, coupons and Groupons - drive one single visit where you are losing much-needed profits. Not only that - they attract junk traffic that will rage about you online for any little perceived injustice.
Those bad reviews COST you forever as new prospects pass you up and head to your competitor instead.
Listen, you'll always get the occasional crappy review... but why pour gas on the fire?
Need some Yelp Help? Give us a call... we'll show you how to turn that pain in the ass into a new-customer conveyor belt... promise.
In the mean time, download this eye-opening report and explore even more ways to increase your restaurant sales.