Popular online review site Yelp may be a hit among consumers who like to write reviews and rate local businesses – the site has collected more than 77 million reviews (as of Q1 2015) – but it doesn’t seem like it’s getting great reviews from small business owners (SMB).
According to the results of a customer feedback survey by local business network Alignable, Yelp’s Net Promoter Score (NPS) is a paltry -64, which ranks the company 14th out of the 18 SMB brands included in the Alignable survey. The online review site also has a cumulative 1-star rating (out of 5 stars).
What Yelp’s NPS means
NPS, a customer feedback and management tool that’s designed to gauge the loyalty of a company’s customer relationships, identifies customers as belonging to three distinct groups: promoters, passives, and detractors. Yelp’s NPS suggests that, among SMB owners, very few promoters are willing to recommend the use of the site – certainly not as much as those who are considered unhappy customers.
“Having customers willing to champion your company to others is the best ‘media’ we can buy,” wrote Alignable CEO Eric Groves in an E-mail to subscribers. “So many of us measure our NPS to know how we’re doing.”
Alignable’s NPS survey takes into account the responses of over 5,000 SMB owners across the US. According to Groves, the scores tallied by SMB brands range from a low of -80 to a high of 49. Alignable says it’s going to continue sharing NPS scorecards of companies in the SMB space each month, along with snippets of reviews from small business owners.
Included in the survey are: MEX, Comcast, Constant Contact, Facebook, GoDaddy, Google, Groupon, Insightly, Mailchimp, OnDeck, PayPal, Quickbooks, Square, Squarespace, Verizon, Web.com, and Wix.
Low NPS and negative feedback are not the only problems Yelp has to deal with. The online review site continues to face controversies involving its review policies and the rights of review-writing customers, and that’s not to mention the company’s growth struggles. (Related: Is Yelp up for sale?)
There are still some bright spots, such as this enthusiastic review from a New York SMB owner who was part of the Alignable survey: “Yelp’s free listing program serves as an important channel for small local retail businesses to get discovered by new customers, primarily via local searches made on Google where Yelp consistently ranks in top 10 results. Small businesses need to claim their listings and enhance their free listings with content, photos, videos, etc to the fullest. On the other hand, Yelp’s paid advertising program for these types of businesses, I believe, is hard for to justify.”
Will you recommend Yelp to other local business owners? We look forward to reading your thoughts in the comment section below.