July 8, 2010
How to Use Location-Based Social Networks for Your Business
More small businesses are looking to profit from promotions on location-based social networks such as Foursquare and Gowalla. Here’s a guide to tapping in to the power of the check-in.
Looking at the big picture, location is where social media was in 2005 or 2006,” says Rob Reed, an industry blogger and founder of MomentFeed.com, a company that helps companies use location-based services for marketing. “Location is growing so much faster than social media ever did. One year from now, we’ll see location jump the equivalent of three years social media time.”
Using geolocation for business isn’t just about the check-ins, which can feel a bit empty and redundant (say a customer walks into your bar. If they check in, will they buy more drinks? Highly unlikely). The act of checking in, while it’s the obvious first connection, is not where the value lies in these networks. It’s the data that checking in and the behaviors revealed about a customer’s patterns and habits that really add to the experience.
If you’re a business who appreciates what Facebook and Twitter have done for you, location is going to be 10 times more valuable,” Reed says.
To appreciate part of the benefits your business can reap, think like a customer. By checking in, they’re in a sense affirming to a wide net of friends and online connections that they “like” your business. It’s a sort of endorsement. And, it can deepen the connection between the geolocation using customer and your business. Unlike mobile advertising, it’s all about engagement in these networks with both existing and potential customers.
