A location-based social networking site is attracting both businesses and users.
Like any student, daily deals and discount coupons are an important part of Karan Walia’s life. And one particular networking website, he says, meets this need perfectly: Foursquare.
A location-based social networking site, Foursquare-crossed 10 million users across the world in June. According to data from the site AppAppeal.com, “Close to 3.5 per cent of Foursquare users come from India and they generate 4.6 per cent of pageviews on Foursquare.” While that’s a far cry from the 35 million Facebook users and about four million Twitter users in India, Foursquare has begun to attract brands that are looking to net young customers who are also active mobile phone users.
“Foursquare is best experienced on a handset with good data coverage and GPS system like an iPhone or the Android phones,” says Walia, who studies at St Xavier’s College, Mumbai. The website also doubles as a location-based game that gives the user and his network of friends points and badges for discovering new places within the city.
Brands such as Café Coffee Day and Monginis, local business owners like ice-cream stores and leading cafés and restaurants in metros are among those that have started rewarding customers who come through Foursquare. Shruti Madhok, a 23-year old resident of Gurgaon, says, “I found even small stores like Farm2Kitchen in Gurgaon are on Foursquare and they often push discount codes for users who check into their stores via the site.” Foursquare also ties in user’s updates with Twitter and Facebook. Any updates on Foursquare by users will also show up their favourite social network, says Madhok.
The platform was primarily built for fun, with a pinch of gaming to catch up with friends who were a few blocks away. In 2011, Foursquare started to branch out and has opened its doors to businesses and brands. Monginis recently rolled out a social media initiative across 447 of its outlets in India along with social media specialist Red Digital. Yashraj Vakil, COO, Red Digital, explains, “The idea is to use Foursquare as a loyalty programme for brand like Monginis. Users can list their favourite items and add tips about the outlet they have visited. Frequent visits to Monginis outlets can help customers earn points and also achieve the title of ‘Mayor’ for that particular location.” ‘Mayors’ (a term used on Foursquare to identify a person who has visited a particular location the maximum number of times) are the most loyal customers a brand can have and Monginis has rolled out rewards for the ‘Mayor’ of each outlet and is also in the process of introducing check-in deals.
To educate its store managers, Monginis has sent material to its outlets showing how to identify a ‘Mayor’. Each of the 447 shops sport, a window cling (Foursquare sticker) next to the door handle , informing users that the outlet is Foursquare activated.
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Raghu Deo, who has held the position of ‘Mayor’ of East Delhi’s Monginis outlet, says, “I am a bachelor and used to check in to this particular outlet every day after work. With this new loyalty programme on Foursquare and as the ‘Mayor’ of the outlet, every time I walk into the store, the store managers identify me by name and give me discounts on purchase.” Deo was recently ousted from the position and is now determined to win his ‘Mayor-ship’ back.
Earlier, Coca-Cola in Australia and McDonalds in the US have utilised the service to bring people into their outlets. This is exactly what Red Digital is hoping to reproduce for Monginis across India. Vakil adds, “I think Foursquare can add a lot of value to the local brands. The true potential of such geo-social tagging services is in discovering businesses and letting them benefit through people’s tips and regular check-ins.”
Users like Vivek Sinha, an IT employee in Bangalore, became regulars at Café Coffee Day when the brand started offering discounts to Foursquare users. The coffee chain is said to offer 15 per cent discount to users who have checked in three times into the same outlet. And ‘Mayors’ visiting the outlet get a free coffee and a 20 per cent discount on every third check-in. Sinha says, “When you are going to Café Coffee Day with a group of four to eight people, you know a 20 per cent discount means a lot. Plus, it’s fun to oust people from their ‘Mayor-ships’.”
Foursquare is clearly bringing the yellow pages alive on mobile devices. Given that location information comes with personal experiences and endorsements or critiques makes it easier for users to pick their location.