Time to Jump Aboard Location-based Services

Eric Groves
Wed, 02 Mar 2011 15:10:00 +0000

Do you ever overhear customers in line before a purchase saying they need to "check in?" Do you notice people proclaiming they're the "Mayor" of your restaurant or store? Location-based services such as Foursquare, Gowalla, Where.com, and Facebook Places were already a hot topic in 2010, and now, according to a report from Packaged Facts, they're poised to "explode" in 2011 as restaurants and other retailers turn to such services to pull people into their establishments.

Need further proof that check-ins are hot? AdAge issues a weekly tracking report showing which merchants garner the most check-ins each week. Naturally, big name retailers dominate the top 10, but that doesn't mean small business owners can't get in on the game too. After all, the social nature of services such as Foursquare and Gowalla make them excellent vehicles for word-of-mouth marketing. Both make it easy for users to share their whereabouts with friends on Facebook and followers on Twitter.

So how can you as a small business owner take advantage of location-based services? By claiming your location(s) on Foursquare, Gowalla, and/or Where.com, you can:

Get reports of who has checked-in at your location and who checks in most frequently, see when you get the most foot traffic, and get a gender breakdown of your customer base.

Offer specials to regular customers and prospects: Foursquare and Gowalla make it easy to offer a special to users who check-in at your location. You can set how often a user gets a reward and what it is (e.g., a free cup of coffee for every five check-ins or 10% off for the Mayor). You can change the special as often as you want, and there's no need to manage punch cards.

Attract prospects via specials: Foursquare, in particular, alerts users to nearby specials. If your business is offering a special and a prospective customer checks in at a neighboring location, he might be lured in to your establishment by the deal.

Test offers to customers: Using the reporting details that come with these services, you can see what deals and terms are most appealing.

When analysts say a market is going to "explode," it's an opportunity to learn how the latest technology or trend can help your business. If you're a small business retailer or restaurant, take a few minutes today to familiarize yourself with one or more of the location-based services available to consumers. Make sure you at least claim your location and double-check that the information in your profile is up-to-date. Even if you don't start offering deals right away, you'll at least have some familiarity with location-based services and, more importantly, can start monitoring how your customers are using them.