Foursquare, Gowalla and MyTown are part of the growing trend of location-based mobile applications.
Generally speaking, these services work by allowing you to "check in" on your smart phone wherever you go -- information that is then shared with your circle of friends.
The idea is that when you see others are doing and they see what you're doing, you'll be more likely to meet up and explore new places in your city. The apps also allow user to earn points and unlock badges for discovering new places, doing new things and meeting new people.
It's fun -- and growing. Foursquare now tops 1.2 million people who have "checked in" 40 million times. But why should businesses be paying attention to these services? Here are a few reasons.
1. They create free advertising opportunities to people already in your area
At its most basic, Foursquare is really all about businesses in your area. Where are you going to eat, drink or shop? Where are your friends going? This creates huge opportunities for businesses to increase their reach.
Nashville-based Tasti-D-Lite was a Foursquare early adopter. When you are near their West End Ave. location and log in to Foursquare, the app alerts you to deals like the one at left. What a simple, great way to spread the word!
2. They're catching on with big brands...
It's hard to ignore a trend that every major company from Starbucks to Domino's to the Wall Street Journal to Bravo is embracing. These brands and many more are buying into the geolocation craze early, siting the possibilities for content marketing, brand loyalty and more.
3. ...but smaller businesses have their own advantages
In my Nashville neighborhood, I'm more likely to hang out at a local restaurant than a chain like Starbucks. For people like me, Foursquare is a welcome reminder of all the sometimes-overlooked eateries and shops that don't have the big advertising budgets to catch my attention on a daily basis. Wherever I go, I can search Foursquare for unique, off-the-beaten-path places, even checking for tips left by others who've been there before.
4. They allow customers to advertise their loyalty
Pretty much all these applications build in rewards for loyal customers. In Foursquare, competition is often fierce among users to become the "Mayor" of a venue--a feat achieved by checking in at a place more often than anyone else using the service. As the service becomes more well-known, more businesses are catching on and providing perks to Mayors and other frequent visitors, thus generating more good word-of-mouth for the small price of a free soft drink or dessert. It's the online equivalent of a loyalty card, with added cache.
5. They turn users into viral marketers for the places they like
Not only do location-based applications provide a platform for businesses to market to customers, they also turn users into influential voices for the places they discover or frequent. Foursquare features include tips and "to-do" lists any user can create, which serve to champion local businesses.
Foursquare is also open to partnering with entities to create complete city tours with their own specialty badges--something the city of Chicago spearheaded and a model that's now being followed by other cities and states.
To learn more
To get started learning more, a good first step is to simply go to Foursquare and find out if your business is listed and what customers are saying there.
When you're ready to go further, here's a great primer on using Foursquare to promote a business.
UPDATE: The blog Brand Builder just posted a great, comprehensive guide to Foursquare for businesses.
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