Despite the fact 2010 was arguably the year of the location-based check-in (although others like The Next Web contend 2011 is really the year), there are certain pundits who proclaim that the phenomenon was nothing more than a short lived fad yet many others envision the check-in will evolve beyond simply telecasting one’s whereabouts.
One thing is for sure … Foursquare definitely begs to differ with the doomsday prognosticators and if the newest version of the geo-location platform is any indication of future usage trends, the check-in will eventually grow more sophisticated. In late March 2011, Foursquare launched version 3.0 and with it came a litany of new features most notably more specials for merchants. The 2 year old startup now boasts more than 250k small and large businesses alike that have taken advantage of specials.
One of the biggest merchant criticisms of Foursquare to date concerns the check-in and how it does not translate into increased loyalty from the casual customer nor does it typically drive additional foot traffic outside of customers that already intended to patronize the merchant before opening the Foursquare application. As outlined in the Foursquare blog, two of the three areas of concentration for the 3.0 release were “Loyalty” and “Discovery” in addition to “Encouragement”.
Building Loyalty (the 7 Specials)
The new “Specials Nearby” feature on the top menu is now the focal point of the Foursquare application when first opened. If a user is within a few blocks of a merchant and a merchant offers a discount or incentive then that business will appear in the top menu. Within 24 hours of a Foursquare representative approving a merchant’s submission, a special will appear.
There are currently seven specials available for small businesses which we list below with an explanation of potential benefit to a merchant. To actually begin the process of creating a special all you have to do is go to manager tools, click on campaigns, then click start a campaign and finally add a special. It’s very intuitive and simple. You can choose which venue you’d like to have this special run. You can even have different specials running at different locations if you have more than one, and you can opt to group your locations.
Mayor Special – This “oldie but goodie” special dates back to the early days of Foursquare, but don’t let that fool you as it remains close to the core mission of the service. The Foursquare mayor is the consumer who has checked into a merchant venue more times than anybody else in the most recent 60 day period. Theoretically at least, this person would be a merchant’s best and most loyal customer therefore it’s logical to give he or she some sort of reward (remember though, it doesn’t have to be financial) whether it be a free-shirt or a premier parking space. What this special can do is generate a ‘turf war’ between a merchant’s best customers who vie for the mayorship. This special can come in the form of an offer whenever a new mayor takes over the crown or a daily reward for whomever the mayor is that day.
Loyalty Special – Just as the name indicates, Foursquare intends this campaign feature to provide the most incentive for the average customer to return multiple times over a near term period. Like any of the other specials, the merchant does not have to make this reward monetary, but we strongly suggest that it stand head and shoulders above the rest. The mechanics are fairly simple. The merchant can select any set interval and every time a customer hits that interval they earn their loyalty discount. So, for example, if the interval is set at six, every sixth time a customer frequents the merchant they earn the special. It’s simple and it’s a proven method to get people back at your establishment.
Check-In Special – We think this is a tough one. This type of reward enables a merchant to build a campaign around every single customer visit that incorporates a Foursquare check-in. Typically speaking, it’s difficult to provide a worthwhile reward to every person who checks in, especially one that’s cost effective. An additional $1 off or a free appetizer during happy hour are the best options here. All in all, we much prefer the Loyalty Special over the Check-In Special, but we do recognize this special grows in importance when considering the new Specials Nearby feature. For those merchants that are limited in the incentives they can offer customers, some may prefer to concentrate on the Newbie Special to drive new traffic and rely on the Loyalty Special to bring them back in the door.
Newbie Special – The one gives a special discount to anybody who checks in at an establishment for the first time. This reward could range anywhere from a 20% off discount to a free round of drinks. It’s important to note that this is a fantastic way to start a relationship with your customers on the right foot and leaves a lasting impression to compliment the quality of your service or product. The Newbie Special goes well with the Loyalty Special as it helps bring them back after the initial positive encounter.
Swarm Special – This one only works for certain types of businesses but can prove extremely effective when used properly. The merchant specifies the number of people who need to be checked in at the establishment for the special to be unlocked. For example, if you have a boutique clothing store and 10 people check-in, the Swarm Special could unlock a 25% percent discount for all people inside the business. This encourages large friend groups or city tours to sample a merchant’s product. Merchant be warned…you are wise to set a limit for how frequently this special is available so that you don’t give away too much product. The Swarm Special makes a whole bunch of sense for sporting and entertainment venues.
Friends Special – This is the smaller version of the Swarm Special. If you are a merchant, remember of course that your customers have to be friends on Foursquare and each one has to check-in redeem the special. The mechanics are fairly straightforward. Simply specify how many friends must check-in to the merchant along with the group discount (this is where an integration with LivingSocial would make a whole lot of sense). So much changes quickly in the geo-location and group-buying space, but for now, Foursquare appears to be flying solo when it comes to offering deals. We wouldn’t be shocked to see this change in the near future on other services like Gowalla or Loopt.
Final Steps
There you have it … the seven Foursquare specials! Now it’s up to you (the merchant) as to which one(s) you want to offer customers. No matter what a merchant opts to offer, Foursquare provides detailed instruction sheets that are distributable to employees online or offline.
If you are the one responsible for setting up a merchant campaign, the most critical thing to remember is that an unlocked special is color while a yet-to-be-unlocked special is black and white. Don’t make the mistake of publishing a special the public shouldn’t see!
Be sure to follow @foursquare on Twitter for the latest news and developments. For questions / support, tweet @4sqSupport.
