Marketing w/ Location Based Social Networks

How to:  Marketing with Location Social Networks

Everyone has been a buzz about location based social networks and their potential for brick and mortar marketing.   Just a few weeks ago I was having a conversations with a new friend about about how dramatically cell phones have changed the social culture of taking in public.  He interestingly reminded my how not too long ago, when speaking on a public phone booth, people would take great offense if you stood too close to them.    I remember now how if there was a door on the phone booth, we would always close that door to assure privacy.

Flash forward to March 2010: with the rapid adoption of smart phones and the growing popularity of Location Based Social Networks,  not only do people speak freely in public with apparent disregard, but public publish their exact location online for the world, or at least their friends to see.

“lo-so” Network or Location Based Social Networks

So-called “lo-so” networks like Foursquare, Loopt, and Gowalla enable any business with a physical location to not only communicate with customers online, but actually get more of them to walk in the door — and that’s exciting.

Social networking has finally become something valuable, not only for branding, but also for one off brick-and-mortar businesses. Smartphones and location-based social networks allow users to interact, share, meet up, and recommend places based on their physical coordinates. This real-world connection to social media can mean more foot traffic and profits for business owners.

The question any brick-and-mortar business owner should be asking him or herself is no longer “Should I use lo-so networks?” It’s “How do I do it?”  Here is an example from a handful of clubs on the Sunset Strip in West Hollywood speaking at a panel regarding their foray into the use of social networks to drive real world foot traffic:

Nathan Levinson, marketing director of the Viper Room, said that because of the likes of Twitter, Facebook, and now Foursquare, he has been able to cut advertising spending in half. Adler says that the interaction between his customers, and would-be customers, via social media has made his club better and has restored the image of the Roxy to many.

Another element is the age of the panelists. Adler (@nicadler) says it’s because he, Levinson (@n8thesk8), and the Comedy Store’s Alf LaMont (@alflamont) are from a younger generation that they are more willing to put aside traditional approaches to competition and marketing.  Not only have the men worked together to launch the Sunset Strip Music Festival, which some have compared to a taste of SXSW, but they have helped each other master Twitter, which they agree works best in their busy lives.

Twitter is the fastest, most forward-moving form of social networking, Levinson said in the “Social Media Case Study of L.A.’s Sunset Strip” panel. “It is my favorite.”

When asked which he prefers, Adler compared Twitter and Facebook thusly: “One is when you’re moving and one is when you’re sitting at home.”

The newest social media craze, Foursquare, hasn’t gone without notice from these men. Simply “checking in” on Foursquare will get you entry to the Comedy Store, LaMont said, while checking into the Roxy will get you upgraded to VIP, Adler announced.

“We’re just trying to give people a little something extra with social media,” Adler explained. “It’s promotion without flat-out promoting.”

The following tips are essential to getting started.

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1. Research – Learn the Platforms

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To begin with, you should at least have an understating of the. Most people use lo-so apps while on the go from their smart phones to “check in” whenever they go places.  The phone’s internal GPS (Global Positioning System ) locates the users whereabouts and determine what possible “venue” they could be at, providing the user options to select a pre loaded location or “create a new listing”. These “check ins” enable friends to know where each others where, or where they frequently go. Some services allow users to leave location-based tips for friends to discover later, and several involve social competitions, or the ability to unlock digital badges, stickers, and prizes.  Businesses are getting in on the fun announcing specials or promotions through these apps, so that when a users “check in,” they receive notifications of nearby deals.

Item one on your to-do list should be to become familiar with the prevailing platforms. Foursquare, Gowalla, Loopt, Brightkite, and Google Latitude are the most talked about in general, though others exist, and popularity varies by geography (e.g. Foursquare reigns supreme in New York City, and Loopt has a lot of clout in Silicon Valley). Other platforms to be aware of include Yelp and Facebook, which are just now dabbling in lo-so. Sign up for all of these, and download the apps to your phone if you can, so you can become familiar with how someone would use each one. Most of the networks have iPhone, Android, and BlackBerry apps, and all of them allow you to “check in” via desktop and mobile web browsers.

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2. Strategy – Determine Your Specific Goals

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Before you can optimize your business for lo-social networking, you need to step back and determine what you want to accomplish and what you are going to track to quantify the efficacy of your lo-so marketing.

• Are you hoping to increase foot traffic to your store?
• Do you want to sell more of a particular item?
• Do you want more patrons at certain times of day?
• Do you want to promote a specific product?
• Are you looking for new customer acquisition?
• Repeat customers?

You may say, “I want all of those,” but to be effective, you need to set specific objectives. These will determine your approach to the entire process. Luckily, if you need to change things around to fit new objectives in the future, the cost of doing so is very small.

One goal that should be on every business’s list is to be easily findable on every network, which brings us to number three:

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3. Establish Your Presence

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Make sure that your business is properly listed on each network. Double check to make sure the address, phone, and details are correct and current. Don’t assume that users have added everything correctly. On some networks, once a venue is there, it’s stuck. Others let you edit. Don’t be afraid to contact the network itself to ask them for help if you can’t fix your venue listing. Gowalla’s Jonathan Carroll says, “We receive dozens of e-mails a day from businesses around the world asking for additions or tweaks to their Gowalla locations, and we’re happy to help out with them.”

It’s also a really good idea to put up notices or stickers (on the door, order counter, receipts, or table centerpieces, for example) announcing “We’re on Foursquare” or “Find us on Yelp.” This will remind people to “check in” and spread the word about you.

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4. Be Unique

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Different networks have different options for customization, but it’s important that you do as much as you can to build out your listing. Add your website. Integrate with your other social networking accounts, like Twitter. Features are constantly being added to each network, but great customizations you can try right now include the following:

On Foursquare: Create to-do lists for users to explore around your area. And if possible, work with Foursquare to create a custom badge for your venue or event.

On Gowalla: Ask for a custom icon for your location, rather than the generic one for your category. Examples: Shake Shack, NYC, Austin Java, and Coop Ale Works.

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5. Implement Compelling Promotions

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Lo-social networks allow you to run promos to increase engagement and get people into your store. Foursquare’s Tristan Walker says, “Any type of in-store promotion you can conceive we want to make it so Foursquare can run it.” Many businesses offer specials like “check in 10 times and get a free appetizer” on all the major lo-so networks. Establish well-conceived promotions based on your goals, then evaluate the results. The biggest mistake you can make is to do this sloppily or half-heartedly.

Carroll cites Lift Cafe as a good example. “They offer 10% off every purchase when you check in on Gowalla, which they include in their description and also as a reminder in the success screen after check-in.”

“[What] we’ve seen across all channels again and again is that what works is a good local offer,” says Loopt CEO Sam Altman. Businesses with offers that cater to people “making that gametime decision” when they’re out and about do the best. “Offer value to the customer so it doesn’t feel like an ad,” he advises.

Shelley Bernstein, Chief of Technology for the Brooklyn Museum, talks about how the institution uses Foursquare to create a multi-faceted campaign and experience for museum goers.

“We knew that many people coming here wanted to know more about the local neighborhood, which is something Foursquare does well. We asked our staff for their opinion of the best stuff in the neighborhood … and left tips at all these venues for Foursquare users to find. Second, we added a promo for our mayor to reward the people who are consistently identifying themselves with us. Third, Foursquare has given us a badge which unlocks after three visits, and this helps reward our community for coming in the doors.

“All of these things together help create a total presence on the platform that works well for the Foursquare community, the Brooklyn Museum visitor, and the local merchants in our neighborhood.””

Common promotions across various networks include the following:

• Raffles (e.g. “Every person who checks in gets a chance to win an iPod.”)
• Specials for the user who checks in most often. This is a staple of Foursquare promos for a lot of venues (e.g. “Top user/mayor gets the first drink free every time he/she comes in.”)
• First check in specials (e.g. “Get 30% off your order when you check in for the first time.”)
• Digital punch cards (e.g. “Check in 5 times, get a free coffee.”)

Tips for developing effective promotions:

• Advertise particular incentives, rather than your business in general (“20% off between 2 and 4pm;” “Buy one burger, get one free;” etc.).
• On platforms that allow you create your own banner ads (such as Loopt), include your address and opening hours in the ad itself, when possible.
• Be creative. For example, Incase, the bag and protective case maker, recently ran a promo with Gowalla to put virtual versions of its products into the app to be collected and traded. Carroll remarks, “The result has been phenomenal: Thousands upon thousands of their virtual items have been distributed in Gowalla to an audience who could benefit from their products, but many of whom had not previously heard of Incase.”

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6. Engage With Your Customers

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It would be a mistake to use Twitter as a one-way corporate megaphone, never interacting with your audience. That’s a quick route to an audience of zero. One of the most effective uses of social media is personal engagement and relationship building with your audience. The same goes for lo-so networks.

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7. Track Everything

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Foursquare just released a slick analytics dashboard for venues to track their stats. Other networks have metrics you can view as well, and they’ll certainly be releasing better and better tools. From data you can study online to qualitative observations at your own store, it’s important to keep track of everything so you can learn what promotions work with your audience. Be aware, though, that your ROI may not be directly measurable, and aside from increased sales, you’re working for brand exposure and increased awareness of your business.

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8. Be Prepared to Change

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Location-based social network technology may be the newest and grooviest incarnation of social media, but it certainly won’t be the last. And in a year it won’t look exactly like it does today. Be prepared to adapt your methods when features change, as new tools emerge, and as you review your own promotional results. Again, keep your objectives in mind, and be ready to keep up with new technology.

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9. Avoid Common Mistakes

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In talking with representatives from the major lo-so networks, several common mistakes came up. Here are a few things you should try to avoid:

• Don’t leave fake reviews or tips. They’re easy to spot, and you’ll lose all on- and off-line credibility immediately when people catch on.
• Don’t throw up poorly designed ads. “A badly designed banner ad performs so much worse than … a good one,” Altman says. “It’s an insane difference.”
• Don’t forget to monitor activity. Carroll points out, “Chances are if someone has a gripe or praise with their check-in, it’s a real-time thing: The patron is probably still there … so the business has a chance to make the experience even better.”

We’d love to hear about your own lo-so experiences. Let us know how location-based services have benefited your business in the comments!

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