Location-based Social Networking Sites Could Benefit Your Business

I haven’t touched on location-based social networking sites (LBS) like Foursquare or Gowalla in any depth yet for a reason: I personally can’t stand them. I practically live in front on my various computers and what with keeping up to date with mail and Twitter when I’m out and about with my iPhone, I don’t really want to spend more time fiddling with digital services.

But putting that aside, I’m going to write about location-based social networks today because if you’re in business, and in particular a brick and mortar location like an actual shop or restaurant, you probably need to think about what they can do for you along with other social media tools. Location-based social networks are increasingly becoming part of online communications so they deserve coverage. Even by someone as sceptical as me!

Location-based social networking sites: The Basics

foursquare location-based social networking siteWith people increasingly connected to the web via smart phones services like Foursquare and Gowalla have sprung up allowing people to comment on locations using text messages or device specific applications (say with Foursquare on your iPhone, for example.)

Foursquare is a “check-in” location-based social networking game that awards you points and sometimes “badges” for the frequency with which users visit real, physical locations — bars, restaurants, concert venues, historical sites, etc. Higher points of interest earn you “badges” relevant to the location. The point of the game is to claim territory, thus making you “Mayor” of a specific spot.

On Gowalla you check-into locations and “items” and exchange other items to become a “Founder” (comparable to Mayor).

Both services allow users to find out where friends are visiting (or have visited) and benefit from the tips, reviews and shared information others have left about locations.

For example, if you check in with Foursquare at, say, the very fictional Big Expensive Restaurant in Stockholm on Stureplan you might well discover that someone has recommended you order: “The prawns with garlic dressing! They’re divine”. Someone else might have left the following tip: “Ask Christoffer to explain what makes a good Swedish snaps and he’ll probably give you a free sample or two.”

In this way, location-based social networking sites like Gowalla and Foursquare have the possibility of helping you navigate the consumer jungle and informing your choices.

Another “benefit” is that if you check-in at Arlanda Airport when you arrive in Sweden, you’ll notify everyone in your network who lives here in Stockholm that you’re in town. They might then call you to suggest lunch or dinner. In this way, location-based social networking sites can potentially benefit your social life.

Location-based social networks: Do they benefit your businesses?

The simple answer to this is, yes: free advertising.

Each check-in at Big Expensive Restaurant shares the location with friends on your location-based social networking site and (optionally) everyone on Twitter. Just from the people I follow on Twitter a day doesn’t go by when I don’t see some restaurant, shop or airport mentioned when someone has checked in. It certainly doesn’t influence my purchasing decisions but it does make me more aware of certain place names if only on a very peripheral level.

More importantly than free advertising though, location-based social networking sites allow venues to track their patrons. It becomes easy to figure out who your regular customers and who your brand ambassadors are. As such this could be important for your brick and mortar business –your café, coffee shop or dry cleaners.

Special offers on Foursquar

Special offers on Foursquar

Already I’m seeing restaurants and coffee shops starting to reward Foursquare mayors with “Free coffee”. It’s likely to be only a question of time before the offers increase as more businesses start to compete in this arena.

This is, of course, of benefit to the end customer. But it’s also a way of improving your relationship with customers. I don’t know as if I’m willing to jump onboard location-based social networks for a cheaper cup of coffee or meal, but others might. And no doubt, offers will increase as more businesses wise up to the potential benefits of LBS.

Clearly, Foursquare et all area keen to get businesses involved. On March 9 Foursquare announced that it plans to distribute a free analytics tool and dashboard in the coming weeks that will give business owners access to a range of information and statistics about visitors to their establishments.

Brand monitoring is becoming a headache

From a communications point of view, if you haven’t audited your brand monitoring system lately, now might be a good time to do so (As technology is changing so quickly I recommend you do this every six months!). Whereas last year everyone was saying monitor your brand on Twitter, now you have to weigh up the cost of choosing to discover or ignore what’s being said about your business on LSBs.

This is all set to grow and grow. I heard that VCs were going crazy about location-based social networks at SXSW last

I’m interested in your take on this

Are you already on Foursquare or Gowalla?
From a user’s point of view, what’s the real value in location-based social networking sites?
Are you afraid of stalking?
Or are you involved as a business? Why?

Related posts:

  1. Foursquare – Changing the Way Businesses Connect
  2. Get Results with Integrated Marketing Communications
  3. Facebook Could Be Bad for Your Business
  4. Social Media Fails to Inspire Norwegian Managers
  5. Social Media is a “Find me” Search Engine

View Comments to Location-based Social Networking Sites Could Benefit Your Business
  1. Anonymous
    March 22, 2010 | 01:43

    Opportunity, yes. Big headaches — absolutely! While some may think the garlic prawns are divine, others may think … and report … that they suck. Maybe even your competitors.rnrnThink of the implications for a new restaurant just getting a start. A few bad comments could kill an entire enterprise. And unlike Twitter, where tweets are like throwing out a message in a bottle, the reviews on Foursquare are permanently attached to your brand name.rnrnThis is all moot of course because there is money to be made with these apps so they will stick around, despite the business dangers. We will have to prepare our customers for their own social media wars. How? I don’t know.

  2. markwilliamschaefer
    March 21, 2010 | 20:43

    Opportunity, yes. Big headaches — absolutely! While some may think the garlic prawns are divine, others may think … and report … that they suck. Maybe even your competitors.

    Think of the implications for a new restaurant just getting a start. A few bad comments could kill an entire enterprise. And unlike Twitter, where tweets are like throwing out a message in a bottle, the reviews on Foursquare are permanently attached to your brand name.

    This is all moot of course because there is money to be made with these apps so they will stick around, despite the business dangers. We will have to prepare our customers for their own social media wars. How? I don't know.

  3. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  4. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  5. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  6. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  7. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  8. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  9. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  10. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  11. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  12. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  13. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  14. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  15. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  16. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  17. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  18. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  19. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  20. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  21. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  22. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  23. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  24. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  25. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  26. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  27. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  28. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  29. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  30. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  31. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  32. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  33. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  34. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  35. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  36. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  37. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  38. Jon Buscall
    March 22, 2010 | 07:55

    @Mark, rnThat’s a great comment. Thanks. rnPreparing customers to deal with this is not easy. How do you persuade people who haven’t even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services. rnrnYou can almost hear the sound of the cash register going because they’ll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

  39. Jon Buscall
    March 22, 2010 | 02:55

    @Mark,
    That's a great comment. Thanks.
    Preparing customers to deal with this is not easy. How do you persuade people who haven't even grasped Twitter —or that their customer and staff are on Facebook 24/7— that they need to monitor and maybe even participate in location-based services.

    You can almost hear the sound of the cash register going because they'll see more and more costs going into media monitoring. But as you say, bad reviews can crush a new business.

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