A missed opportunity at an airport restaurant provides five location-based lessons for marketers.
The growth and integration of location-based apps into customer loyalty and marketing efforts is hard to ignore. Witness the growth of companies like Foursquare, Gowalla, ShopKick, and Loopt and the growing number of consumers and venues participating.
Take the poster child for location-based apps, Foursquare, which celebrates its second anniversary this month (March 2011). One only needs to look at the growth and activity on Foursquare to validate location-based apps' justified place in the marketing mix as a valid and important platform for brands to build a community. In just two years, Foursquare has surpassed more than 7.5 million users, and although it doesn't disclose the number of venues it has indexed, sources estimate that number has surpassed 10 million bars, restaurants, parks, stores, and other places. If estimates are correct, there are on average about 50 check-ins per venue. For big brands actively embracing this channel, that means opportunity.
However, like all new mediums, location-based services and the brands embracing them aren't immune to experiencing growing pains. Yes, there are the typical growing pains of scaling to meet demand, but the one (and perhaps most important) for brands interested in embracing this opportunity is customer experience. I'm an avid user of Foursquare and have been for some time. In fact, my Foursquare infograph describes me as an early adopter - #869,474 to be exact. I'm proud of my 275 check-ins and 15 badges and, given my travel, I'm not surprised that most of my check-ins are comprised of travel, food, and bars…that explains the extra 10 pounds. Across those 275 check-ins, I can count on one hand how many times I was served a special offer - even more surprising given my "Mayor" status at several venues. To check out your profile, visit http://www.fourgraph.me.
More enlightening was the experience I had when taking advantage of a special offer recently. It was my visit last month at Knuckles at the Hyatt Regency San Francisco Airport. Upon arrival I decided to check in to review the tips from the community and grab a quick bite to eat after my long flight from New York. Upon check-in, I was served up an offer that included a free pint of beer with the purchase of an entrée – score! Given this was one of the few times I was served an offer, I was reminded of the enormous potential location-based services have. I showed the offer on my Android to the bartender who asked "what is this?" I explained, and what erupted could only be described as a circus. I ordered my Fat Tire and endured the bartender repeatedly returning to me with questions about the offer for nearly 30 minutes. He asked me how I got the offer and if it was "real." He borrowed my Android to show others and ultimately explained that no one told them about the promotion. After 45 minutes, about 10 people, including other bartenders and what looked like the manager, were huddled in deep discussion. By now with all the ruckus, the other diners were approaching me to inquire what was going on. I explained and within minutes everyone with a smartphone around the bar was downloading Foursquare and checking in. Good news for Foursquare. I ordered another Fat Tire - this was getting good - and like any great comedian who borrows from real-world experience and observations, knew it would form the basis of my next ClickZ column. So what are the lessons for marketers? Many:
I'm a big fan of location-based services and the community that has embraced this platform has provided invaluable tips on numerous occasions. I have no doubt that location-based services will continue to grow as consumers and marketers actively embrace this channel. But to be successful marketers, you need to be mindful of the customer experience before a customer check-in - otherwise you and the brand you represent will find those experiences will generate precisely the opposite intention - masses checking out.
Until next time,
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Michael Della Penna is an digital marketing veteran, entrepreneur, and visionary currently serving as CEO of Invisible Media, a next-generation mobile data, decisioning, and marketing automation platform. Prior to joining Invisible Media, Michael was the senior vice president of emerging channels at Responsys. His responsibilities included spearheading the overall strategic direction, M&A efforts (including the acquisition of PushIO), partnerships, and solution offering across key digital channels including social, mobile, and display. Before joining Responsys, Michael founded Conversa Marketing, a full-service email and social CRM agency that helped brands ignite conversations and cultivate relationships with customers across the social Web. Conversa Marketing, was acquired by StrongView in 2010. Before branching out on his own, Michael served as CMO for Epsilon. At Epsilon, Michael helped grow and transform the company from a database provider to a multi-channel marketing services powerhouse in just three years. Michael's other key leadership roles include CMO at Bigfoot Interactive, vice president of strategic development at CNET Networks, Inc., and vice president of marketing at ZDNet. Michael has been named to BtoB Magazine's 100 Most Influential People in Business-to-Business Marketing five times and received a BBA and an MBA from Hofstra University.
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