Yelp announced the launch of a new “revenue estimator” tool, which lets local businesses compare their Yelp-driven business to the national average as found in a recent Boston Consulting Group study. According to that study, local businesses with free Yelp accounts saw $8,000 in annual revenue from Yelp. For advertisers, it was $23,000.
This new free tool does the math by multiplying customer leads sent from Yelp each month by the business’s average revenue per customer lead,” explains Yelp in a blog post. We’ve also included the average spend per customer for each business category for reference, based on the BCG study.”
“We think this new tool will be helpful to business owners for two reasons,” the company adds. “First, it helps quantify the revenue opportunity Yelp is already sending to each business. Second, it establishes a revenue baseline for prospective advertisers, from which they can later evaluate the impact of their investment in Yelp Ads.”
Business owners can use the tool when they log in to Yelp.
This isn’t the only new calculation tool out there available for businesses. Google just launched one too. This one helps you calculate the value of mobile for both online and offline conversions.