The Location Game

While Twitter asks, "What are you doing?", location-based apps like Foursquare and Gowalla ask users to "check in" wherever it is they're doing it

. They show users' friends where they are, provide venue information, and integrate "gaming" elements - users can earn both virtual and tangible incentives for particular actions. Because of their social qualities, checking in to a location is also a new way for users to make recommendations to their friends.

Location-based apps have opened up a new channel by which marketers can communicate with consumers.

Here are some examples of companies that have worked with location-based applications to develop unique interactive campaigns:

Gowalla and Incase

When a Gowalla user checks in to an Apple Store, they receive a virtual prize--an item that's part of Incase's line of bags, cases, and other gear (much of it designed for Apple products). After six Apple Store check-ins--by which time users acquire the entire line of virtual gear and an accompanying familiarity with the Incase brand-- they receive the "Incase Pin of Glory."

Foursquare and AJ Bombers

AJ Bombers, a restaurant in Milwaukee, WI, also utilizes the "game" aspect of location-based apps for marketing purposes. After noticing his Twitter followers' interest in Foursquare, AJ Bombers' owner, Joe Sorge, began planning Foursquare parties to give attendees chances to earn rare badges- and draw crowds into his restaurant.

Foursquare and Tasti D-Lite

When customers at New York dessert chain Tasti D-Lite swipe their frequency cards, an automatic update shows up on Twitter and Foursquare (for those who have chosen to link their accounts). Users who opt in to this program gain additional points towards purchases - while sharing their affinity for Tasti D-Lite with their friends.

So, what do these examples illustrate about how location-based apps can be using for marketing?

-Narrow your marketing focus to people who are likely to make purchases. For example, Incase targets users who are already at an Apple Store. They probably own products for which Incase makes gear, and they could purchase an Incase product right now.

-Use the "game" aspect of the apps to engage users. Both the Incase and AJ Bombers campaigns provide virtual incentives that entice heavy users of location apps to perform real world actions.

-Use promotions - like the events at AJ Bombers - to draw new customers.

-Use check-ins to track and reward frequent customers. Tasti D-Lite chose to combine this with a current promotion and simply update its frequency card program.

-Tie them in with other social media. Share your location-based campaign with your Facebook and Twitter contacts.

-Take advantage of their flexibility. Foursquare and Gowalla worked closely with Incase, AJ Bombers, and Tasti D-Lite to ensure the success of their campaigns. Since these young companies are still tweaking their apps (and determining how best to monetize their services), they're open to ideas as to how to appeal to marketers.

As a very new marketing channel, location-based apps are changing and evolving quickly. Getting involved early gives you a chance to get creative, take advantage of innovative opportunities and ultimately lead in this emerging field.

by: AlterSage Consultants

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