Foursquare is a new online social media network that lets users “check in” to stores, bars, restaurants, cafes, etc. When users “check in” to a new place, Foursquare updates their friends with their location. Updates can also include venue information – how that particular user liked or didn’t like the place, what’s best there, when and what deals they offer, hours, etc. 80% of users have installed the free application on their iPhone and the remainder on other mobile devices.
When users visit a business and check in by using their Foursquare application, they start to accumulate points. Frequent participation is also rewarded with titles/badges – most desirable one being Mayor, defining the most frequent visitor who is rewarded with freebies. Users compete within their geographic area. The game resets every Monday and everyone starts fresh.
Implications for Businesses
Marketing opportunities involving Foursquare are significant, but unique. Some key considerations are as follows:
– Businesses know who is checking in, when and at what frequency. This provides an opportunity to entice and reward frequent visitors with special offers, promotions, discounts and awards.
– Product quality and customer service have never been so important or so immediately known. When users check in, they inform their community of the experience.
– Since users are using the mobile social web, companies are able to connect with consumers within their places of business. Companies can also create incentives and contests to drive customers to their physical locations.
– Privacy might be an issue with Facebook, but Foursquare opens up a whole new set of concerns. Most Foursquare users are very cautious about who they add as a friend, because they are concerned about letting strangers know where they are or where they’re not. Because of this selectivity, Foursquare communities are typically much smaller than normal friend lists. Instead of being able to reach huge groups of followers, companies will have to target multiple micro-communities.
– Since Foursquare users have only trusted friends in their micro-communities, many believe that the check-in updates have greater impact than Twitter messages. This increased trust but decreased size will force brands to become more personalized.
– With Twitter, many brands are trying to integrate their messaging into conversations that started before their involvement. With Foursquare, the conversation only exists because of brands. Foursquare communities are brand-centric.
As Foursquare evolves, marketers will gain access to valuable consumer insight from the data the site will be aggregating. Participating businesses will be able to:
– See demographic profiles of their customers
– Analyze the number of miles driven to get to their establishment for geographic targeting purposes
– See where the customer came from and where they went after to identify possible synergy with other retailers or gain insight into viable brand extension ideas
– Identify slower traffic days to offer day-of-week incentives.
Foursquare has created an opportunity for businesses to capitalize on an inherent human need to win a game and be perceived as “top dog”. These types of games provide entertainment and monetary benefits (discounts, special offers, freebies, etc) to participants, revenue increases to location-based businesses, and they help grow the economy as a whole. For businesses that have a physical address and thrive on foot-traffic, creating a Foursquare account is a smart business move.
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