Signalfire: Interactive Marketing Solutions

Foursquare: An Introduction for Business

Foursquare is a relatively recent (at least in the Midwest) addition to the social media world and is quickly gaining popularity. The question so many are asking is: what is Foursquare and how can it be used for business?

Foursquare is a combination of a game and a social media network that utilizes locations as venues in which points are awarded when you “check in” on mobile devices. Venues can be a restaurant, a store, or any other set location. While Foursquare has been address based, the system recently advanced to a pure GPS-based system for determining the venue’s location.

One of the most rapidly growing themes in social media is location-based interaction. Even though you may be in a crowded bar, you can immediately discover who in your network (friends) is there or see where they have checked in recently. Points are awarded for each check-in. Badges, or awards for frequent check-ins, adding new venues, or checking in with numerous people are given as the user gains points. Some cities or large events (CES in Las Vegas and the upcoming SXSW in Austin) even have custom badges for the savvy tech travelers.

Such games or networks have traditionally been viewed as purely recreational and not seen as having any business potential. However, like we’ve seen with many other aspects of social media, most anything can be used for smart business. In some of the more experienced Foursquare markets, we’ve seen the uprise of bars, restaurants and retail locations using Foursquare as a powerful networking and rewards tool. How?

A Foursquare Evening

To better understand how a business can maximize Foursquare, lets walk through a semi-typical example of how consumers use Foursquare. Steve is out for an evening with his best friend John and several friends. To kick off the night, they attend a basketball game at the local sport arena. Using their mobile devices, Steve and John “check-in” at the well-frequented arena. Steve sees Foursquare notify other “friends” he is at the game with John. Both receive points for checking in. Steve also has Foursquare publish his location and who he checked in with on Facebook and Twitter.

At the conclusion of the basketball game, the group decides to hit a nearby bar. Again, both check in and again, both see their networks and other social media accounts get notification. Because the establishment is “social media friendly”, a “tip” shows up on Steve and John’s mobile devices that the bar is offering “2 for 1 rail drinks with arena stub”. After some time, the group decides to call it a night. Steve and John go their separate ways. Steve heads for home, but receives a check-in notification that John went to another bar and met up with several others. Feeling hungary, Steve decides to stop at a local take out restaurant.

At the local take-out restaurant, Steve attempts to check in only to find the venue not in the Foursquare system. Using his mobile device, Steve is able to add the venue and check in. In addition to gaining points for checking in, Steve receives additional points for adding a new venue. Taking his food, Steve ends his evening back at his apartment.

While this whole escapade may seem like “over sharing” to some and a breakdown of interpersonal communication to others, there is opportunity for a business to capitalize on this location-based interaction. As we mentioned at the bar near the arena, Foursquare allows users to add tips or to-do items associated with venues. This can range from specials to menu suggestions, or even reviews on service. Simply put, this is a forum where consumers are talking about your business (your brand). Being part of that conversation would be a good idea.

Benefiting Business

Being part of the Foursquare conversation is a lot like participating in other social media. It will take time. It will take some open-mindedness. It will take a bit of hands-on research about your individual market. Depending on your individual market, you may already have a presence on Foursquare. The question is then, how does a business make the most of it?

Here is an Example of a Bar/Pub—

One bar uses Foursquare tips to announce specials to users “checking-in” at their location. This “exclusive” special gives the bar the ability to see in real life the effects of Foursquare check-ins. By showing the bartender you’ve checked in, simply flashing the status screen, the business owner can keep a relatively accurate tally sheet of the number of specials versus the number of actual check-ins.

This particular establishment goes one step further. The individual who has the most numerous check-ins over time (referred to by Foursquare as the “Mayor”), receives free tap beer when he or she arrives with more than two others. Why? First, to reach the status of Mayor a user has to check-in a significant number of times. In all likelihood, that means they have made numerous purchases. Further, when coming in with others, it is far more likely the others will spend even more when one of their members are perceived as “drinking for free”.

Is the system foolproof? No. Neither are most promotions. However, rather than focus on the Mayor, for example, look at the number of people competing to become the Mayor. Looking at the tally of drink specials, you have an excellent source of feedback of a low-cost marketing effort. This example may be unique, but think of your own business’ situation.

Many will agree Foursquare is just one of many location-based social networking apps currently in use. Participating in more than one may be beneficial. A word of warning—don’t fall into the “if you build it they will come” trap. If you have Foursquare specials, be sure you advertise it in the entrance. Bring it up on your Facebook Fan Page or Twitter. Have fliers out in the customer areas. One of the best examples we’ve seen is a sign in the front door of a bar “We are a social media friendly establishment: Facebook, Twitter, Foursquare — Check in or check them out for specials”.

With all of the advances in mobile devices, the changes to the way consumers or customers interact with a business, and the ever-more entwined we are with social media, the more businesses have to look at developments like Foursquare. Just imagine what you could do with your business?