Michael Luca, Assistant Professor of Business Administration at Harvard Business School, wrote a really good anlaysis on Harvard Business Review entitled “Yelp Is Leaving Chains Behind”, on the real impact of Yelp and its review and ratings system on a business’s bottom line. Michael conducted research and studied records on 3,582 restaurants that were in business in Seattle at any point from 2003—2009 and discovered that increases in independent or small chain restaurants’ Yelp ratings lead to revenue increases, with ratings having more impact the more reviews a restaurant gets. It’s also a great example of how important it is to measure [...]
