The Amazing Social Race

A new fad in the digital world is location-based marketing. It’s been a major driving tool to local businesses and capturing a whole new customer base. Location-social networks such as FourSquare and Loopt provide a new way for friends to meet up, connect, share and review some of their favorite spots in the city.

Any in-store promotion can grow like wildfire when it is broadcast through one of these social networks and shared by hundreds of people…it can also bring in a customer that would have never thought of stopping in.

A small coffee shop in Austin, TX uses Gowalla as its location-social media tool. Lift Cafe provides a 10% discount to whomever “checks-in” with their mobile phone. For those simply looking for a quick coffee, Lift Cafe would be an easy and optimal choice for the money saving consumer. Returning on a daily basis to get your morning coffee is a no-brainer if you get rewarded to do so.

From these types of promotions, the retailer has the ability to track and somehow reward their loyal customers. This then gives the incentive for customers to return time and time again. It especially can be appealing to the competitive sector of your customers.  If, to possibly win a contest, why wouldn’t he/she check-in just one more time?

Ex: “10 check-ins and you’ll receive a free coffee”. Or sponsor contests, “The most check-ins this month, gets a free breakfast sandwich”.

With so many marketing tools, location-based marketing works well with the busy, on-the-go consumer- opening up a whole new customer base if used effectively. This social-mobile use of business is finally bringing internet to retail point of sale, and finally bringing together online and offline sale techniques.

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