About a week ago, Amy’s Baking Co. in Phoenix had a massive social media meltdown after they appeared on an episode of Kitchen Nightmares. It was actually pretty painful to watch, but amusing, because it was just so completely insane. The couple now claim their Twitter and Facebook accounts were hacked and have apparently gotten law enforcement involved. Anyway, it brought up this article, Amy’s Baking Co. meltdown begs the question: Is Yelp bad for small business?

I have the answer. No! No, no, no, no! Yelp is awesome for small business! Of course, it might be bad news for businesses who don’t purvey good products or give a crap about customer service. For everyone else, Yelp is a great tool to see who your brand ambassadors are and to reach an already engaged audience.

1. Claim Your Account. Seems pretty obvious, right? You’d be surprised how many accounts go unclaimed. Claiming your accounts means you can stay up to date with reviews posted about your business and can reply in a timely fashion. Make sure all your business information is filled in correctly so potential customers can easily find what they’re looking for.

2. Add Photos. When I read a great review of a restaurant or similar business, the next thing I want to see is an awesome photo. If a positive review has whet someone’s whistle, a killer photo gallery might seal the deal. Invest in a professional photographer, it is well worth the cost.

3. Respond. Only you can make it right. If a customer posts a negative review, you have the opportunity to respond and win that customer back. A swift, positive response from you can win over even the most disgruntled patron. Make sure you respond to the positive comments as well, a simple ‘thank you’ can go a long way.

4. Have a Special. Someone browsing Yelp for a specific product or experience is looking to buy. You can entice them further with a discount or special offer. Make sure it’s easy for your customer to redeem your coupon though, nothing is more sure to leave a sour first impression than a frustrating redemption process.

5. Advertise. Once you have received a few reviews, you might want to invest a few advertising dollars into targeted ad placement. There are quite a few options for small businesses, from deals (Groupon-esque coupons) to monthly advertising. There’s even an option to place your ad on a competitors page. Make sure you do your research and choose the best option for your business

Do you you use Yelp for your small business? Share your own tips in the comments.