By: Erika Stevens

Let me start by saying – I love Foursquare.  If you happen to be someone who knows me personally you will agree that the first thing I do when I arrive anywhere is check-in.  My co-worker who first introduced me to Foursquare would be quick to tell you that I did not embrace the idea when he explained it to me.  I believe my reaction was something along the lines of being adamantly opposed to the whole world knowing my whereabouts.  Being in the loyalty marketing industry, Foursquare grabbed my attention when it started being billed as the new vehicle for loyalty programs.  Since my job is loyalty, I took the task to explore the offerings and fell hard for the possibility of becoming mayor and earning rewards.

But after 10 months of use, 470 check-ins and 5 mayorships (I have had up to 9 at a time) I have yet to be rewarded for my check-ins.  Beyond that, I rarely see any businesses that have the yellow specials flag.  I am surprised by this especially after Foursquare just enhanced its marketing for businesses.  The new enhancements include ways to reward beyond the mayor specials and frequency and include marketing materials to use in your business.  Why businesses are not using these new features has become frustrating for me since I always take the time to get out my cell phone and check-in.

My loyalty to these companies is certainly not improving based on the mobile rewards I am receiving.  Foursquare and other location-based networks offer new and interesting ways to reward customers, but there is still a need for traditional loyalty.  While Foursquare has enhanced their rewards options, the reward offered may not be enough to entice the customer.  The customer analytics that a loyalty program provides offer an in depth look at your customers allowing you to get to know them better.  With these analytics you are able to promote products and services customers have expressed interest in or previously purchased.  The customer data you collect can include important dates enabling you to communicate with them for birthdays, anniversaries or even just to say we’ve missed you.  Using Foursquare to offer additional rewards or to direct people to your loyalty program can enhance your customers experience from both sides.

I am excited to see the ways businesses will utilize the new tools provided by Foursquare, but I do not view checking-in as a replacement for a rewards program.  Currently the most exciting part of Foursquare is the gaming aspect.  I have found myself choosing Cub Foods over my other grocery options based on my competition with another individual to become the mayor.  Sadly I get the feeling he might work there while I just go to the grocery store that often.  Even worse Cub does not offer any incentive for checking in on Foursquare so we are battling for the sake of the game. 

In what ways do you see businesses using Fourquare to reward customers?  Are you using Foursquare as a consumer?  What customer rewards have you received for checking in?