Marketing Tips for Location Based Social Networks

by Willy Lim
(Co-Founder, NetProfitQuest)

Original article appears in November 2010 issue of SME & Entrepreneurship Magazine

In my last article, I shared about the potential of location based searches with the increased adoption of smartphones by consumers. I shared about how Google maps can help a consumer can find products and services that are near to his current location.

You may have already heard of or are even a member of social networks like Facebook and Twitter. In this article I want to a new kind of social networks that allows you to find new friends, new places and thing to do, base on your location: Location Based Social Networks, or LBS for short. LBS are social networks that use GPS features on your mobile device to locate you and that let you broadcast your location and other content from your mobile device. One of the fastest growing LBS in the world right now is Foursquare.

Imagine this. You are in a city on business. You know people who live there but you haven't got a chance to connect with them face to face. Yet you are already connected with them on Foursquare, so all you have to do is "check in" when your flight touches down in the city and you will be already notifying your friends on Foursquare that you are in town. Then like magic, you will begin to hear from friends and colleagues through email or by phone saying "Hey, I didn't know you were in town. Want to have coffee?"

That's just part of the fun. Foursquare allows you to add a "tip" to a location. A tip is like a review or a recommendation. You can leave behind good advice for other visitors and locals to help them with useful information like "Must try the nasi lemak here! Ask for more chilli!" or "Visit this mamak shop on Sunday...there is a 2 for 1 offer for their pratas :)"

If you are not familiar with the city you are in, you can look at the tips in Foursquare shared by other users, which can range from food recommendations to fun places to visit! The great thing about these tips is that when you're near a location that's in the Foursquare's database, you can instantly access any comments people have left and get recommendations based on your proximity to that location.

You can also accumulate points each week for checking in or for adding new establishments to the Foursquare's database. If you check in several times at a certain location, you can become "Mayor" of that place. This is where Foursquare becomes an interesting social game, as you and others try to claim and reclaim the mayor status from each other. A little friendly game of competition with your online friends anyone?

Foursquare isn't just for individuals. Businesses can partner with Foursquare and use the service for demand generation to attract new customers. Many local businesses that are more savvy with social media are catching on to the popularity of Foursquare and are offering Mayors special perks, like free coffee or a discount. Some establishments even put up signs in their windows or put out menu boards on the curb to show their love of Mayors.

Don't believe that Foursquare is catching on among local businesses? Check this out.

One of the cool things you can do with Foursquare is that you can lure first-time visitors to your store with a special offer. For example, you can tell new customers about the discount or deal you offer when they show you their first Foursquare check-in at your store.

I was checking in to Burger King at KL Sentral using Foursquare on my iPhone a couple of days ago when I noticed a yellow colour "SPECIAL NEARBY" box on the top right hand corner of the screen.

Clicking on the yellow box, I was forwarded to a special offer by KLIA Express, offering 10% discount for my train rides to KLIA. That's cool :)

Businesses can also use Foursquare like a customer loyalty card. You can give customers a special discount after a certain number of check-ins at your store.

I was pleasantly surprise that Le Meridien nearby KL Sentral was giving a free cup of Illy coffee for every 5th check-in when you order a main course. They also give a free room upgrade and 10% off a la carte menu to Mayor!

The point is: It's time to be there or be square. You might not use Foursquare, but there's a good chance some of your customers do - and you can leverage the power of their social network by engaging them and finding cool ways to increase your profits without increasing your marketing budgets.