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What Foursquare is and how you can use it for business

  Foursquare is a location-based platform for mobile devices (smart phones, iPods, iPads). People use it to “check-in” at places and show their friends where they are. They can also post pictures and leave comments and reviews about a place or suggest things to do. Foursquare is not as popular as Facebook and Twitter but it has been growing really fast, as has the mobile usage by Americans.

Just like a game, Foursquare awards users with virtual badges and points when they check in. Points are summed to generate ranks between friends and customers and to reward badges to the users. The customer with the most check-ins at a place becomes the “mayor” of the place. The Mayorship Badge is considered the most important one and usually comes with great prizes and promotions.

This is how it works: people download the app on their phones and create an account. If they prefer, they can sign in using their Facebook or Twitter login. After they log in, users will find 5 options:

1. Friends: this feature will show a list of all your friends, including a separate list of friends that are nearby and where they last checked in. This feature will also show in which place of the rankings you are compared to your friends.
2. Explore: this shows every business nearby.  Users have the option to search for a specific kind of business or just see a list of what is around them. Foursquare also shows a list of recommended places and another one with what is trending around that area. Businesses with Foursquare specials are highlighted and have their own category here.
3. Check-in: you click here to check in at a place. The platform will show all the places nearby but you have the option to add a place if it is not listed. However, Foursquare does not let the user check in at a place that it isn’t close by. Places that are running Foursquare Campaigns are highlighted on this list as well.
4. Lists:  this is a new feature where you can save a list of things to do or places to go. Your friends have access to your lists and they can share theirs with you.
5. Profile:  all your personal info is stored here. You can see all your points, badges and places you went.

Badges: The badges don’t have any commercial value, but people feel important and cool when they get one. To date, Foursquare has created over 200 virtual badges but some of them are active only during specific periods of time. Some badges were created only for special events (such as the Toys “R” Us Black Friday badge, that offered a 15% off discount for whoever checked in at a Toys “R” Us store during Black Friday 2010) or for marketing campaigns (like the President of Dunkin Nation badge, for whoever checked in the most at the same Dunkin Donuts location in a week). For Foursquare users, to earn badges is important as they can come with other prizes or be worth more points. Mayor check-ins are worth 3 points, for example. Normal check-ins are just 1 point.

Foursquare for business: Foursquare is fun for customers and great for businesses. The Explore feature generates visibility and can drive customers to your venue. Another valuable tool is the advertising platform, which lets you create offers to increase loyalty and to get new customers.  

Also, the Merchant Dashboard provides stats from every check-in and helps you to learn more about your business and your clients. The dashboard will show you the gender, age, time and number of visitors and unique visitors that were in your place during a period of time.

When you create a special, you’ll have access to Foursquare data as well. You’ll be able to see how many times your campaign was viewed and how many deals were unlocked. This information is important because it’ll tell you about your customers’ behavior and will help you to create better campaigns to grow your business. Foursquare has 7 types of specials.

Foursquare Campaigns: Specials are really easy to set up on Foursquare. All you have to do is choose what you want to do and for how long, and the platform will create it for you.  Keep in mind that you can create as many specials as you want, but since Foursquare works like a game, you shouldn’t make it too easy for your clients to get deals. Be creative and use it as a strategy to drive customers to your business. For example, if you notice that sales are really slow between 6pm-8pm you can create a special for whoever checks in during that time frame.

To attract new customers, Foursquare has 5 types of specials:

• Friends Special: when friends check in together, they get a reward or discount. You choose what you want to give to them or how many friends need to check in together.
• Swarm Special: if your clients are really used to Foursquare and acknowledge that you work with it too, this is a great special to drive a lot of people to your place at the same time. As the name says, the Swarm Special is when a group of strangers check in together in order to get a reward. Keep in mind that you’ll need to be prepared to reward everyone in the group. After spreading awareness of their participation on Foursquare, AJ Bombers (a restaurant from Milwaukee, Wisconsin) created a special for when 51 people check in together. They got 161 users to check in, which boosted the sales and attracted new customers.
• Flash Special: This is a “last minute deal” kind of special, used to attract customers that might be passing by your place. For restaurants, it is a great idea to launch this special a few minutes before lunch or dinner time, when people are looking for places to eat.
• Newbie Special: every business should have a newbie special, which rewards customers the first time they check in.  It does not need to be something big, but it should be something that will get them to check in. Good examples are “get a free medium beverage when you check in for the first time” or “get a free dessert with purchase of a meal when you first check in.”
• Check-in Special:  it is an offer to everyone that checks in at your place.

To keep your customers coming back, Foursquare has 2 types of specials:

• Mayor Special: an offer valid only for the “mayor” of your place. As silly as it sounds, this is the most used special, and users get very competitive about it. Also, it is a great way to reward your most loyal customer, so make sure you give away something nice, like 50% off an entire meal or unlimited free beverages for the mayor only.
• Loyalty Special: rewards customers when they repeatedly check in at your venue. This special can have many variations since you are able to specify the time and conditions for the check-ins (like “get a free appetizer every 3^rd check-in between 6pm-8pm”).

As you can see, Foursquare has many features that are valuable for businesses. Even if you are still trying to catch up with Facebook and Twitter, you should explore Foursquare. The platform is easy to set up, free, and can help you to increase sales. Also, it gives clients one more reason to go and come back to your place. Most venues are already on Foursquare, so go there, claim your page and start getting more business! Just keep in mind that while Facebook has 800 million users, Foursquare has “only” 10 million, so your numbers will look smaller. Also, don’t forget to put a sign on your place asking customers to check in. Now, all you have to do is to set up your specials, keep one eye on the Merchant Dashboard and have some fun!

For more information on how to claim your page on Foursquare or how to set up a special, see additional articles coming soon.

If you have questions about Foursquare or any social media, feel free to contact me at nmorais@movingtargets.com.

-Natalia Morais.