Location-Based Networks and Location-Based Marketing

As Marcia Stepanek wrote here on Justmeans.com in March, location-based social networking continues to be a hugely popular trend in social media.  During SXSW in Austin last month, for example, one of the most popular services, Foursquare, boasted almost 350,000 check-ins in one day.

Location-based social networks allow users to "check in" at sites throughout their day -- either with their phones or via a web interface.  Depending on the network, users who check-in are rewarded with badges, titles, points, and other digital awards.  By sharing their location, users can announce their whereabouts to friends, to their other social networks (namely Twitter and Facebook), and to others on location.  Also known as "geosocial networking," services like Foursquare, Gowalla, Loopt, and Yelp take advantage of the GPS-capabilities in new smartphones to help users connect with others who share their interests and locale.  As Marcia writes, "Location, simply put, changes a lot -- from marketing to social action. Merging location information and the Web means that most of us can walk around with a smart phone in our pockets that not only tell others where we are but also plugs into the Net to share that information, merge it with online databases and spit out who else is in the immediate vicinity that we might know."

With users rapidly embracing these new services, businesses in turn are trying to make themselves destinations within these location-based networks.  In particular, many businesses have launched successful marketing campaigns aimed at those who check-in.  A local cafe I frequent, for example, offers a discount on a cup of coffee when one checks-in via Foursquare, and the Mayor (a reward given in Foursquare for having the most check-ins at a particular location) gets a free pastry.  The promotional possibilities for this sort of marketing campaign are numerous -- giveaways, raffles, in-store recognition, discounts --and as this social media trend is still a new one, there are many innovative opportunities for businesses willing to lure and acknowledge customers who check-in this way.  By identifying and rewarding those customers who already check-in regularly, marketing campaigns utilizing location-based social networks can help increase interest in and engagement with a store or brand.

As with any social media campaign a business might undertake, it is important to interact with customers on this network.  After all, social media networks are just that -- networks -- and they can help provide a dialogue with customers and businesses, rather than more traditional one-way marketing streams.  And the goal of having a business active on a location-based network should always dovetail with clear business goals (increase traffic, sell a particular product, and so on).  With the increasing use of smartphones and the growing interest in location-based social networks, businesses might find this a fun way to get folks to come "check in" and check them out.