Foursquare - Not Just Badges Anymore

The location-sharing app Foursquare, born at the 2009 South by Southwest (SXSW) social media event in Austin, Texas, has launched a new version that begins to increase its viability among businesses. While earning badges for check-ins and becoming the “Mayor” of a location was fun, those behaviors may now translate into merchant incentives that reward users for their consumption habits. Available for Android, iPhone, Blackberry, Palm and other mobile platforms, Foursquare  launched version 3.0 of its service (for iPhone and Android) just in time for this weekend’s SXSW, with a recommendation engine that finds places to go based on keywords and a merchant rewards program to give them more ways to attract Foursquare users. With two years of data on usage, Foursquare rainmakers designed new types of merchant integration around the social behaviors of its members. Flash specials promoting being one of the first 20 people at a specific location get 10 percent off and friend specials motivating check in with four friends to receive 25 percent off your bill. Looks like Foursquare is headed in the right direction. Will Facebook Places and other geotargeting platforms join them?

Welcome To The Dance - Facebook Places

I've posted about geo-targeting previously to introduce how companies like Foursquare and others are leveraging consumers' whereabouts to provide offers, incentives on mobile platforms, but geo-targeting has now moved into a powerful "rainmaking" phase.With Facebook and its 150 million mobile friends now able to check-in everywhere they go with Facebook Places, The Digital Raindance is now really on!

For most of us who have already dabbled on Facebook, building our friends lists, re-connecting with old friends and school mates, we're completely aware of its social networking power and influence. With Facebook Places, those same friends will serve as ambassadors to locations they frequent and enjoy. Therefore, a huge word of mouth marketing wave will provide location-based marketers with exciting new ways to connect with existing and potential new customers.

So with a few clicks on your mobile handset, you can tell your followers what entrees to enjoy at a particular dining establishment, what special discounts are being offered at your favorite retailer or what free giveaways are being provided at an event. Facebook Places will also allow you to read the same from your friends, probably creating more impromptu gatherings with friends if you happen to be in the same general vicinity! And that's music to the ears of Digital Rainmakers, who will keep those mobile coupons and check-in rewards coming!

Internalize, Before You Socialize

When Starbucks recently launched a major promotion on Foursquare to leverage the growing use of geo-targeting applications, it forgot to tell its employees that "mayors" were being offered free coffees, according to a recent AdAge article. The promotion was a great success in terms of driving customers to the retail coffee house, but a disaster on the customer service side because neither baristas or managers knew what customers were referring to when they mentioned the Foursquare promotion. This illustrates that while the temptation to use the latest and greatest digital tools is very strong, marketers still can't overlook the basics.

Keeping The Impulse Alive

Retailers revelled in the advent of e-commerce because an overwhelming percentage of retail transactions are based on impulse. Consumers build justifications for "having to have" a product and when they're in that mood, having easy access to making a purchase closes the deal. So having a computer and Internet access makes satisfying impulses just a few mouse clicks away. Fantastic, right ? Not so fast, what about all that time consumers spend away from their home or office computers ? Now, there's Geo-Social networks and they're all about keeping the impulse alive and well no matter where you are. Mobile applications like @Yelp and @Foursquare on PDAs encourage consumers to check-in, provide tips and win special badges for being out and about. And while that makes some consumers happy, the real force behind these applications is that they allow advertisers to know exactly where you are because they're location based. So, if you're at the store around the corner from that great Italian restaurant, the food establishment can send you an attractive electronic offer to incentivize you to dine there, since you're so close. Geo-social networks are on the rise, because knowing where your potential customers are can provide a huge marketing advantage. After all, retail is all about impulse buying!