I think it is the lack of consistency of a zillion services like this that is an obstacle for the “older” generation like me. Pick up the NY Times or the WSJ or your local paper (or read them online) and read a review of anything and you pretty well know what you’re getting. They may miss one now and then but by and large professional reviewers are consistent and they have editors. I find it tough to wade through a bunch of unedited complaints about how rude the waiters were, etc. that sometimes seem like little more than personal gripes. So, I think Zagat does a better job of weeding out the personal stuff and the duplication. The other issue is coverage. I live in a town with 70 some odd decent restaurants along a main dining strip and exactly two of them were rated at all – with a total of four comments. But, I can see the appeal – it just needs refinement for those of us who grew up reading professional… Read more »

The real power is not so much in the social network itself, but lies with the influencer. Whether the influencer is blogging about products or reviewing products on Amazon or restaurants on Yelp, the influencer is where marketers need to focus their efforts. And that is what makes it all so difficult.

It is not enough to send free product or free coupons to these influencers. As someone recently said, that is so 2006. Instead, marketers and brand owners have to engage with the influencer, remain honest with them and above all remain transparent. The marketers must gain the trust of the influencer, and then and only then can they build a strong and lasting relationship.

Yes, the social networks are important. But don’t focus on the network, focus on the people.

Companies that can dial into social networking sites whose specific goal is either to evangelize (or demonize) brands would do well to get involved with these sites early, even if the ROI might not be there initially. It’s partially brand awareness, partially reputation awareness, and if the company is willing to employ someone who can tackle customer concerns through these sites, then they can also run brand interference before a WOM campaign escalates into something miserable for the company. As someone who runs a social network for grocery shoppers, I find that our editorial and/or advertorial position can help or hinder a brand because of the trust/relational position we have with our audience. It never fails to amaze or humble me when we can take our newsletter and either drive people to a brand or drive them away from a brand. I would think that companies would want to develop a relationship with these types of sites. Even if they can’t control content, a simple presence in the form of advertising or participating in the… Read more »

I had to smile at Anna’s comment about the value of Zagat in Tampa vs. New York City. I experienced the exact same thing in St. Louis. In any case, I had never been to Yelp before, which means I am a bit over age 40. I spent more time there than I should have and found it OK. In comparing reviews of restaurants and nightlife of places I know, Zagat & CitySearch reviews are closer to what I have experienced. Online reviews are already a part of so many choices that I make for restaurants, movies, products bought online, stores…. And the review sites are becoming more social in themselves or inter-linking with the big social networking sites. In the long run, social networking is here to stay. However, I think the reviews in the Yelp model are more a part of social networking than they are a valuable review. The Yelp circles are more akin to a circle of friends’ opinions than they are to real evaluation of people, places and products.

John Andrews, senior marketing manager of emerging media for Walmart, gave a presentation here in Bentonville last week that I think spells out the future retail implications of ALL forms of emerging media (check out our coverage at http://www.nmbblog.com). Walmart’s ambitious vision for “connect and share” is to tie together multiple platforms including polls, ratings and reviews, live chat, feedback buttons, discussion boards, Q&A, blogs, mobile apps, and Walmart’s revolutionary in-store Smart Network. If they succeed in taking these individual components out of silos and integrating them toward full consumer connectivity, they’ll have unprecedented reach and influence as retail pulls out of the doldrums.

P.S. I’ve been an avid Yelper for over a year and cross-reference it with other sites to get the 411 on restaurants, services, etc.

I agree with Max. Social networking and review functions are the wave of things to come. Yelp is terrific because you can read reviews by date and often can get a profile of the writer. Also, importantly, reviews of local businesses are listed. This works so well, because franchises vary in terms of service and quality. Yelp beats Angie’s List and Zagats because the reviews are not hand picked. Yelp is fundamentally democratic and that will be the key, I believe, to effective and credible reviews for product and service search.

Interesting to note in the poll that a majority of respondents said that this would become the way of the future. Having joined a number of social networking sites in areas that I have some interest in both on Ning, LinkedIn and freelance sites such as Yelp.com, I find the sites like Yelp that are able to build a real community that has similar interests and give people a way to connect seem to really be growing organically. In today’s world, it seems everyone under 40 and even some of those over 40 find real value in the opinion of others who have the same interests as we do.

Social networks give consumers access to more and more diverse information than they have ever had before. People trust word of mouth. I see only benefit as long as…

…The traditional reviewer/rater does not go away. Take Zagat for instance. Zagat is, of course, a survey. I live in New York City where if a restaurant is rated 28, it’s probably one of the best in the world. But, if you go to Tampa, a 28-rated restaurant is probably a totally different thing. It could simply be a bar with really good seafood.

That’s why reviewers and Michelin guides will always be important. To give us the relative scale. Is this the best restaurant (or doctor, or hairdresser) in Peoria? Or, is it the best on a broader scale, including other cities and locales?

With the traditional reviewer combined with social networking reviews, it seems to me the consumer has the best of all worlds.

Lachman is right about this being WOM on steroids. WOM is by far the most powerful and influential form of marketing. However it is also the slowest and in many cases least reliable. As statistics have shown that those who have a negative experience with a business will tell 3 times as many people than those who had a positive one, it stands to reason that good businesses could unfairly suffer. Let’s also not forget grudge campaigns by special interest groups with a bone to pick (hey that’s funny).

What’s interesting about the Yelp model–and about the combination of social networks with reviews in general–is that it allows people to get to know their reviewer a bit better. Anyone who has ever read through a pile of conflicting book reviews on Amazon knows that there are many opinions out there, so the question of “who said it?” becomes increasingly important. If, for example, I’m looking at hotel reviews on Trip Advisor I probably want to know if the person reviewing usually stays in Holiday Inns or if they usually stay at the Four Seasons–it helps me put their review in context by understanding their standards and whether they are or are not like me. Right now most reviews are unidentifiable and potentially shills.

By adding more elements of social profiles the online community can better understand the voice behind the review in weighing whether the review is one they want to listen to or not.

Sites like Yelp are the future. Survey after survey have shown that consumers trust word of mouth much more than advertising, even if that word of mouth is coming from a stranger.

Many online retailers are allowing consumers to post reviews for products. This trend will continue to grow.

Smart businesses are monitoring important consumer sites and posting responses to consumers who wrote about less than satisfactory experiences. These responses offer solutions, not just acknowledgment.

This is the future.

When I see reviews of the retail marketing potential of offerings like Yelp.com and other social networking sites, I remind myself of the texting phenomenon: Empty, vapid, sourceless, stupid, and rife with misinformation and space-fillers. Yelp, with its specific focus on restaurants, falls victim to the truism, “a restaurant is never as good the second time.” Trusting Yelp recommendations lasts only until the first failed kudo. I and most of RW’s contributors could become “Yelp Elite” without ever visiting a restaurant. We’re all adept at “blah, blah, blah.” I join Paul Kahan in his opinion that Yelp is “a forum for people who don’t necessarily know what they’re talking about.” If Yelp is addictive, according to some, is it the same kind of addiction attributed to users of Facebook, MySpace, and other social networking sites? And if so, can a user be addicted to more than just one? How do they hold jobs or have real lives? Are these the isolated notebook computer zombies one sees in coffeehouses who insert themselves into real-life social settings… Read more »