Local Marketing with Foursquare

How does it work?

• People set up an account with Foursquare, then "check in" via their mobile phone at different locations throughout the day.

• You can "friend" people in Foursquare, or simply import your Facebook friends.

• As people check in, individuals receive points and are awarded prize badges. For example, if you check in from Starbucks in your neighborhood more than anyone else, you'll be dubbed the "mayor" of Starbucks.

What small businesses use Foursquare for marketing?

• Local retail companies who want to encourage frequent, repeat visits for their customers. Examples include restaurants, dry cleaners, postal stores, etc.

• You can sign up for Foursquare as a consumer yourself and see which of your competitors are (and aren't) participating. 

Why do consumers use Foursquare? 

• To collect points, prize "badges," and eventually, coupons.

• It's sort of like a scavenger hunt for consumers with prizes and a chance to become "Mayor" for places they visit a lot.

• Active Twitter participants tend to be the highest percentage of people who are also using Foursquare. 

What are the benefits of using Foursquare for marketing?

• It's a unique and popular way to build customer loyalty and encourage word-of-mouth marketing in a local area.

• If you don't you may look "old fashioned" to the Foursquare fans.

• The small active foursquare users in your area are very loyal to playing the foursquare game. 

• It's inexpensive and you can learn, adapt, change what offers work and which ones don't.

Drawbacks or cautions about using it for marketing?

• If you're a local business with one store, look at how many people are participating in your area to see if this is worthwhile.  This might be worthwhile for a huge nationwide chain like Subway, but it may only bring in a few customers if you're a local deli.

• You're training customers to play for a price off coupon.  Is that the best way to build loyalty?

• You may be giving your best customers price off deals that you don't need to. 

• Foursquare is trendy at the moment, but unless they find a way to stay relevant it may not last and is not worth too much of a marketing investment at this point. After all, do your friends really care how many times you've checked in at the restaurant down the street? Novelty is a marketing opportunity only while it lasts.

• The cost and time commitment are minimal to get this set up but it's another thing to do and maintain. 

• What will be the reaction of your customers if/when you stop participating?

• Are you active on Twitter?  If not, you may not have very many friends to invite. 

• Because you will be checking into your business each day, you’re likely to be the Mayor fairly quickly.  So you'll need to ensure your promotions reward anyone who checks in, not just the Mayor.