One good referral is worth dozens of unqualified prospects. So San
Francisco spa and yoga studio International Orange is happy to have
found a wellspring of qualified leads at Yelp.com , a local internet
search site. Yelp lets people search for local businesses in communities
across the U.S., sorting results by the number and quality of customer
reviews that businesses get. Reviewers, or "yelpers," rate
businesses using one to five stars and build reputations of their own--hopefully
graduating to the Yelp Elite Squad.
"Yelp has turned out to be a really good match for us," says
Amy Darland, 32-year-old co-founder and managing partner of International
Orange, which expects $3 million in sales this year. Darland opened
the spa in 2002 with Melissa Ferst and Kary Chendo, both 34.
The relationship with Yelp began about two years ago, when Yelp staffers
noticed International Orange had both the highest ratings and the most
reviews (204 at last count) of any local spa. They suggested the owners
buy keyword searches, and Darland estimates that International Orange
now spends $500 each month to buy keyword searches on Yelp. "Yelp
has been one of our most effective investments in terms of value,"
says Darland. "I am getting great clients for what I am paying."
International Orange also benefits from its association with Yelp by
providing a meeting place for the Yelp Elite Squad, which encourages
Yelp reviewers to meet outside cyberspace. The most recent get-together
included nearly 200 people and brought more clients into the spa in
a couple of hours than it normally handles in an entire day. "There
was a line around the block," notes Darland.
Yelp also offers a forum for customer feedback that International Orange
takes very seriously. After recently changing its sign-in and overflow
policies for yoga classes, it received a flurry of negative feedback
on Yelp. The spa adjusted its policies immediately.
"It’s a system of checks and balances, and part of the service
[is] to openly invite critique," says Darland. "Taking this
online helps us act quickly."