Tuesday, March 2, 2010

Foursquare: Location-based consumer insights?

By Johnny Schroepfer

Foursquare is one of the best iPhone applications to date. The idea is simple: check-in on your mobile device at various restaurants, clubs or stores to receive points, unlock badges and even become “mayor” of the venue.

Foursquare also encourages competition amongst your friends to see who can rack up the most points in the same city. This “location-based” social networking app has great potential for brands in terms of understanding and rewarding their customers.

While some major brands like Pepsi have taken advantage of sponsoring leader board pages, local businesses are using the app by offering specials for the“mayor” of their venue. For example, I’ve checked-in to bars and received messages similar to “The mayor of Bar X drinks for free from 8pm-10pm” or “The mayor of Restaurant X receives a free appetizer with purchase of $9.99 or more.”

These location-based promotions are a great way to interact with and reward your customers. The application not only tracks where users are checking-in (and how often) but also allows users to write tips and to-dos for each venue.

Local businesses have the opportunity to understand how often users are visiting their store or restaurant, what they’re saying about the service and what they’re suggesting to other users.

Location-based services like Foursquare will help the mobile industry grow in the United States by increasing engagement and providing value to its users.

Would an app like Foursquare make you more engaged with a local business or major brand?

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Johnny Schroepfer is the strategy & content director at Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. He can be reached at johnnyschroepfer@u.northwestern.edu.

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