Location, Location, Location

Sometimes the popularity of social media companies completely baffles me. At this time two years ago I didn’t think Twitter would fly – I was obviously wrong. Maybe I’m a pessimist when it comes to new things, but sometimes I just can’t see the value these companies provide – not right away that is.

I certainly had some major reservations when I first encountered the company Foursquare. I initially thought that the company was the most absurd thing to come out of the social media world and that it would definitely be a flop. Letting people know where you are, and when you’re not at home, is not exactly what I would consider a good idea. Just type ‘foursquare’ into the Twitter search box and you’ll immediately find a seemingly endless list of people posting their locations, along with detailed online maps! However, this minor flaw may have clouded my ability to see the true marketing potential that Foursquare is able to provide.

Essentially, Foursquare allows consumers to be rewarded with various badges and other honours depending on the number of times they “check in” to a specific location with their mobile device. Still sounds pretty absurd, doesn’t it? Well here’s why it isn’t – merchants of all shapes and sizes, including major companies like Starbucks, are now offering discounts to foursquare users who are the ‘mayors’ or badge holders for that company’s specific location; giving consumers a reason to check-in as many times as they possibly can.
Users can include online comments with their check-ins that act as a great word-of-mouth marketing tool for their favourite establishments. Also, the daily-deals website Groupon, has recently teamed up with Foursquare to offer local deals to users of the mobile service, further expanding the potential marketing possibilities that come along with visiting a particular location.

What started out as a local game for consumers has now become a marketing tool for companies to target their most loyal customers; customers who will hopefully keep coming back again and again. It seems I’m once again being proven wrong about another social media company. Does that mean I’m going to jump on the bandwagon? Probably not – I’m still concerned about the safety issues – but with a great potential to connect to consumers I think any company that doesn’t take advantage of the service will certainly be missing out.

About the author: Stephen De Angelis

Stephen is going into his third year at the Schulich School of Business and is specializing in Marketing and Strategic Management. He’s hoping to get into brand management upon graduating.