Negative Review On Yelp Leads To Defamation Lawsuit

from the this-again? dept

There have been plenty of stories about companies suing people for posting negative reviews about their business practices, and it still seems like a really dumb thing to do -- as in the end all it does is call a lot more attention to the negative review. That's what appears to be happening with a lawsuit over a negative review of a chiropractor on Yelp. The review claimed that the chiropractor was using questionable business and billing practices. The chiropractor threatened the reviewer -- and even though the review was deleted, sued the guy for defamation. Of course, now the details of the supposed unethical billing practices (involved trying to bill insurance companies significantly more, and when that didn't work coming back to the guy and asking him to pay up instead) are getting a lot more attention.

Filed Under: defamation, opinions, reviews
Companies: yelp

Yelp Angers Its Merchants By Deleting Their User Accounts

from the yelp-me-rhonda dept

Review site Yelp caused quite a ruckus this week when they deleted a bunch of user accounts that they deemed to be gaming the system. Many of the users whose accounts were deleted were business owners -- Yelp accused them of trading positive reviews with other business owners, quid pro quo. Yelp has had a tumultuous relationship with its merchants in the past because of negative reviews from Yelpers; some merchants had even tried to ban Yelpers from even visiting their establishments. This tension is unfortunate, since Yelp makes its money from selling these very merchants their services. That said, hopefully Yelp has not overlooked the larger problem that still exists on their site: an overwhelming number of reviews per establishment without any good tools for filtering or determining trust. Furthermore, Yelp has become quite a target for "Foodies," who complain that the reviews from users are pedestrian and inconsistent; Eater has an entire column devoted to the "shortcomings and nuances of the Yelp empire." Despite all of the negative attention that Yelp has been getting, the most important factor is whether or not it continues to grow as a useful resource for users. Yelp just recently surpassed Citysearch in number of users in March of this year, so perhaps they are on the right path.

Filed Under: merchants, reviews
Companies: yelp

Knowing What Business You're In Includes Knowing Who Your Most Important Customers Are

from the three-sided-market dept

One of the themes we've emphasized here at Techdirt is that it's essential to know what market you're in. We've mostly talked about that in terms of knowing when to give away infinite resources in order to sell expensive resources. But another key component is recognizing where the value of your business comes from. For example, one of the keys to Google's success has been their recognition that even though their revenue comes from advertisers, their real value is their users, and so they've focused on keeping users happy. Google knows that as long as they have a lot of users, the advertisers will come to them, but if they drive away users they may not come back. The Bits blog has an even more striking example of the same principle: Bits says that Yelp, the restaurant review site, is succeeding because they recognize that the key to success for their market was to cater to a subset of their users -- their volunteer reviewers. If they have good reviews, users will come to them, and if they have users, the advertisers will come. So they've focused on making reviewing an easy and rewarding experience. The site has focused on building community among the reviewers themselves, adding social-networking functionality so reviewers can connect with each other and follow each others reviews, and even hosting social functions where the most prolific reviewers can meet face to face. Yelp is also careful to shield reviewers from irate restaurant owners: a business owner is allowed to send a reviewer one message, but if he doesn't get a response he's not allowed to contact the reviewer again.

One way to look at this is as a multi-sided market. Traditional media outlets, for example, operate in a two-sided market, where they trade content for eyeballs, and then sell the eyeballs to an advertiser. Yelp's business model is similar, except that they exist in a three-sided market. First, they have to make the site appealing enough to reviewers that they'll write a lot of reviews. Then they use the reviews to attract eyeballs, which they finally sell to advertisers. All three of these are "customers" in some sense, but because the reviewers are what ultimately attracts everyone else to the site, they're ultimately the most important to the site's long-term success. Although Yelp certainly has its share of critics, the basic strategy of catering to reviewers seems like the right one for a review-oriented site.

Filed Under: customers
Companies: yelp

Banning Anyone Who Reviews Your Shop Online Isn't Likely To Generate Much Business

from the what's-a-sign-that-your-store-isn't-customer-friendly? dept

We all know that sometimes customer reviews online can be a bit harsh, but it's something that companies need to learn to deal with. Some take proactive approaches by responding to the complaints with their own side of the story or by apologizing and promising that changes will be made to avoid similar problems in the future. However, one cafe owner has taken things to a different level, apparently putting a sign in the window of the cafe, saying that users of popular online review site Yelp are not allowed as customers. This is effectively saying that the shop owner has no interest in what its customers think of it, has no interest in improving the quality of service and doesn't seem to realize that this will only encourage anyone who has a bad experience to go to Yelp and post about it. In fact, putting this sign in the window seems likely to damage the reputation of the cafe a lot more than any bad review on Yelp.

Filed Under: customer reviews
Companies: yelp