So with Location Based Marketing, it should follow that a top level branded application become the starting point for development of a framework. Using a strategic plan to discover the upsides and ROI should be top of mind. Recent startups in the retail space for example, are offering large chains a very unique application that integrates into exisitng POS systems so that offer redemptions can be facilitated.
One of the problems with Foursquare as an "Open App" in it's current state is that it does not provide voucher connectivity to POS systems and we saw an example of a retail redemption create a total shutdown of the Starbuck's ability to make Foursquare integrate in it's retail operations. This is a good example of having a top level branded Location Based Marketing program in house, then use Social Tools like Foursquare to aggregate and propagate offers and tap into Friends.
Communities can then be segmented as clusters using tools built in so that offers can be created for your customers and prospects in a paradigm that best resembles their pre-existing preferences. Putting a Badge on Foursquare gets the attention of their demographic 18-30 year olds who like to share location, friends and brand preferences in their pre defined "Gaming" profile. As you can imagine, this model appeals to few 35-55 year old business travelers.
If your company is using loyalty programs, points cards, gift cards or collects POS data, you have to consider the extensibility a Location Based Marketing program can add to your reach and ultimate engagement. Social velocity, referrals, Peer to Peer redemptions and even Destination Marketing opportunities now surface. We are looking at ways to create a "Mash Up" of Destination Marketing within a framework of existing Loyalty card programs. Think of it as a way to broker points and offers from one brand to yours and vice versa, in real time, opt in, preferential and location based- not only where you are- but where you are going to be.
Marketing programs that try to create a barrage of offers and coupons like a shotgun blast of suggestions because you entered a GPS location are already dead. Some retail malls have tried this and people simply opt out by turning off their smart phones or delete apps to rid the invasive model. Think of the brokered model as a clearning house that adds a trusted element to the offers- you create a matrix of what you are interested in by brand, service, topic or location preference- no cross promotions without pre-approval, no "flying dart" offers ambushing you at every storefront!
We are working with some restaurants, hotels and retailer chains now- if you are interested in looking at a Top Level Location Based Marketing strategy for your brand, drop us a message or DM on Twitter.
Craig Stark
Managing Director
Social Media Wave
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