Yelp Now Shows Businesses How Much Money They Make From Yelp
Yelp released a new tool on Monday that helps small businesses estimate how much revenue they make through the review site.
The tool, called the Revenue Estimator, lets local businesses track the number of customer leads from their Yelp profile and provides an estimate for how much revenue the merchant generated from those leads, based on data from The Boston Consulting Group about average consumer spending in different retail categories.
The Revenue Estimator is free for businesses to use and available to any local merchant on Yelp. The goal, according to Matt Halprin, Yelp’s VP of revenue and analytics, is to give businesses and advertisers a better way to evaluate the potential return from using Yelp.
“First, it helps quantify the revenue opportunity Yelp is already sending to each business,” Halprin wrote in a blog post announcing the new tool. “Second, it establishes a revenue baseline for prospective advertisers, from which they can later evaluate the impact of their investment in Yelp Ads.”
Yelp isn’t the only Internet company providing better tools for businesses to assess revenue. Google just rolled out a new tool to help businesses measure their ROI from mobile ad spending.