Have you rewarded the mayor of your business? What’s that? You didn’t know you had a mayor? Well the chances are high that you actually do. All you have to do is check foursquare to find out.
Foursquare is a location-based mobile app that millions of people are using to explore what’s around them. It provides users with a list of places in their nearby vicinity, such as retail stores, restaurants, gyms and any other type of business. Users “check in” to an establishment and share their location with friends on Twitter and Facebook. By doing so, users can earn points to compete against friends; “badges,” which are virtual rewards for checking in to certain places and incentives or promotions from local businesses.
Foursquare sounds simple but its impact on retail can be deeply powerful. Simply put, foursquare is a new mobile social media tool that will help your business attract, reward and retain customers in ways that were never possible before.
The day my wife became a convert
My wife, Vanessa, who typically isn’t interested in gadgets or apps, became a convert on a trip to the shopping mall. I opened foursquare and discovered that Express was offering a special: spend at least $150 and get $75 off just for checking in (businesses that offer foursquare specials get special placements on the screen). I looked up and, sure enough, Express was right in front of us. We had never noticed the store before nor had either of us walked in…until now. My wife was impressed that she was rewarded just for showing the clerk a phone screen. It opened a new world for her. Vanessa spent more than $150 and returned the next week for even more items!
35,000 new users a day
Vanessa isn’t the only person checking in. People are checking in every minute of every day in every city and in every country. In fact, users around the world are checking in at the rate of 23 times per second. The foursquare user who checks in to an establishment more often than anyone else in a 30-day period is awarded with the title of “mayor.” That’s the fun part for users. Now here’s the powerful part for businesses.
Any business owner can claim his venue on foursquare (for free) and create “specials.” Specials are rewards for people who check in on foursquare. You can reward people simply for checking in, for checking in a certain number of times, etc. You can also set aside extra-special rewards for the mayor. For example, Chili’s Grill & Bar rewards its customers with free chips and salsa every time they check in. The marketing director tells me it helps separate Chili’s from the “sea of sameness” customers confront when they are looking for a casual dining chain. How does Chili’s make money on the deal? Simple. Nobody walks into Chili’s just for free chips and salsa and leaves. They order appetizers, entrées and drinks.
RadioShack takes it one step further. The company not only rewards people just for checking in, but it also rewards the mayor. RadioShack’s first campaign rewarded anyone who checked in with 10 percent off qualifying purchases. But if a person checked in enough times to be designated the mayor of a particular store, the customer would receive an additional discount of 20 percent off.
Lee Applbaum, RadioShack’s Chief Marketing Officer, told me that he joined foursquare to help “redefine RadioShack for consumers, to contemporize the brand and to leverage the conversation around mobility.” (Part of RadioShack’s mission is to be viewed as the leading specialist in all things mobile).
Foursquare’s demographic was alluring. Early adopters are, by nature, young, mobile, engaged and likely to spend more.
“Those are the people we need to attract,” said Applbaum.
Does it work? According to Applbaum, it sure does.
Foursquare users who unlock specials spend three-and-a-half times more money than the average RadioShack customer.
“That’s a big number,” said Applbaum.
The future is mobile
Google CEO Eric Schmidt recently said, “The next generations of leaders and startups to emerge will involve mobile, local and social. The future will be mobile first.”
He was speaking about where the next great entrepreneurs will be found, of course, but his words should resonate with retailers, as well. People want to do more than purchase products. They want an experience, and since they are increasingly living their lives on their mobile phones, retailers who provide them with a mobile experience will stand out.
When American Express established a partnership with foursquare, the Chairman of AmEx said, “It’s important that we go to where our customers are and they are increasingly on places like foursquare.” Smart retailers are heeding this advice and going to where their customers are.
Be creative and have fun
Don’t use mobile marketing simply as a way to push the same old tired coupons to a new category of customers. Giving someone 10 percent off after their fifth check-in isn’t going to impress anyone and it’s unlikely they’ll share this special with their friends on Twitter and Facebook.
On a recent trip to Austin I found several creative and meaningful specials. Sports Authority was giving out a $25 cash card for foursquare users who spent at least $50. A coffee and wine lounge took 20 percent off your check if you posted your check-in on Facebook. An upscale apartment community took 50 percent off application fees for first time check-ins and a pizza restaurant offered tiered specials — a discount for every check-in and a free large one-topping pizza for the mayor (good every Tuesday).
Be creative. Have fun. Change your specials daily, weekly or seasonally, or tie the special to events such as the Super Bowl or a holiday. By unleashing creativity, foursquare gives retailers the ability to create more interesting experiences for their new customers, loyal customers and their customers’ friends.
If mobile is indeed the future of marketing, you owe it to yourself as a business owner or marketer to have a presence on the mobile platform. Foursquare is a great way to start. It’s free, it’s easy, it allows you to be creative and it offers data on your customers that’s hard to find anywhere else. Start creating your mobile experience today.