Monthly Archives: August 2010

For the last year, there has been a rumble in the marketing world. Buzz companies, including Foursquare and Gowalla, have added a new dimension to online marketing. These companies have given consumers the opportunity to “check in” online at their favorite store or location. Customers can check in on their smart phones, leave comments or reviews, and in turn, have the opportunity to receive discounts or coupons from the stores they frequent.

So What’s the Big Deal?

What started as a rumble in the techie market turned into a thundering roar last week after Facebook rolled out their new “Places” application. In essence, this technology, which was copycatted from companies like Foursquare, gives Facebook users the chance to check in, leave reviews, find out what their friends have said about certain locations, and receive notifications when friends are nearby.

What are the Implications for Your Small Business?

Imagine receiving hundreds of positive reviews and check ins each week. Your business would instantly evolve into a hot spot worth visiting. Maybe you serve the best coffee in the area, or perhaps you own a hip independent clothing store, or up and coming restaurant. If even 15 visitors check in, your business will likely be exposed and connected to thousands of their online friends. If they leave a positive review, thousands of people will instantly see that your business is a leader in your niche. On the other hand, if someone checks in and says, “the food was cold and the service was slow,” you’re facing instant negative exposure. The thing about a service like Facebook Places is anyone, ANYONE, can tag your business and leave a message. All you can do is monitor the feedback, respond to criticism, and discover ways to use your feedback (bothh positive and negative), to grow and market your business.

How Can Small Businesses Use Geolocation Marketing?

Great question! There are a number of ways you can use geolocation technology to your advantage. With decreasing prices attached to smart phones, it’s only a matter of time before nearly every client or customer who walks through your door will be wielding the power to check in at your location. Since your clientele have the power, why not reward them for it. After claiming your business as your own on Foursquare, Facebook, or any of the other geolocation programs out there, you’ll have the opportunity to monitor who is checking in to your location. What’s more, you can create incentives for people to check in. Small businesses can offer coupons or discounts to anyone who checks in at their location on Facebook. Maybe the first time someone checks in they receive a 10% discount, but if they check in three times during the week, they get 50% off their purchase. The options are literally endless. Foursquare rewards people with points for frequently checking in and also names them the “mayor” of the store if they check in more than anyone else. It’s only a matter of time before Facebook adopts a similar policy.

Should I Sign up for Facebook Places or Foursquare?

Instead of asking if you should sign up, start by asking why you shouldn’t sign up. The ability to have your business name and a positive review broadcast to hundreds or thousands of potential customers each day, for free, is incredible. Oh ya, I forgot to mention that Facebook Places and Foursquare are free. All you have to do is claim your business and create an incentive for people to check in. If you’re a small business, it can be a small incentive. If you want more people to flood in, make it worth their while. If this is your first step toward geo-marketing, put up some signage in store to let customers know they can check in and save. The worst thing that happens is no one shows you the screen of their smart phone declaring they’ve checked in, the best scenario, your store will be flooded with new customers checking in and sharing with the world exactly how awesome your company really is.