
Running Groupon or Living Social Deal Leads to 10% Decrease in Yelp Rating -- Study
After a company runs a daily deal through Groupon or Living Social it can expect a Yelp star decline of 10% -- despite a 44% increase in the number of Yelp reviews if it already had at least one -- according to a study by computer scientists from Boston and Harvard universities.
Average rating scores by reviewers who mention daily deals are on average 10% lower than their counterparts -- those reviews that specifically mention both "Groupon" and "coupon" were 20% lower on average, according to John Byers and Georgios Zervas of Boston University's Computer Science Department and Michael Mitzenmacher of Harvard University's School of Engineering Applied Science.
This rating can decrease in some cases by a half-star.
Another study indicates that a full star increase in an independent restaurant's Yelp rating equals about a 9% revenue increase...