This year more than 14,000 self-proclaimed “nerds” descended upon Austin to learn what’s next in the online world at the SXSW Interactive Conference.
“Location, location, location” became the mantra for many of the participants. Start-ups Foursquare and Gowalla are the clear leaders in the so-called location-wars – the battle between the companies that have developed new social tools that allow users to “check-in” at places and events using their smart phones equipped with GPS. The way it works: You load the Foursquare or Gowalla application on your phone. As soon as you do, you are automatically given a list of businesses within a few blocks of where you are at that moment. Then, you click to select your business location and simply check in.
What sounds like the nerd version of Marco Polo actually offers powerful insights for businesses in-the-know. Imagine knowing who is inside or near your establishment at any given moment – or even knowing who your best customers are. It’s possible by simply checking these applications. Businesses also get free advertising from these tools, because anytime a user checks in and shares his or her location with friends, the business gains visibility.
Just last weekend I visited Fort Worth bar 8.0’s, and my friends were amazed that I could bypass the cover charge by simply telling the doorman I followed 8.0’s on Twitter. Earlier in the night, 8.0’s tweeted to let people know that if they followed the bar on Twitter, they could get in for free that evening. While many businesses still struggle in the new, social world, location-based social platforms add yet another dimension to the myriad of new possibilities for customer engagement.
It’s possible that reward systems could be replaced with social check-in’s, with even more incentives given to those who share their locations with friends. Tennessee-based frozen yogurt chain Tasti D-Lite designed its entire rewards program around people sharing their experiences on location-based services (Foursquare) and other social services like Facebook and Twitter. The more you share, the more points you earn. The more points you earn, the more free frozen yogurt you can enjoy on a hot afternoon.
While most SXSW’ers are the earliest adopters, the digital conference gave this new technology the opportunity to show its worth. Gowalla or Foursquare users could immediately see which parties and panel discussions were the most popular. Users could easily click on any location and see comments, the identities of people attending the event and photos. These services were so popular that Gowalla had more than 135,000 total check-ins during the SXSW Digital Conference alone.
While most people won’t ever care to “check in” at the gas station or dentist office, if they have the opportunity to get something in return – they probably will start using these location-based applications. Just as most people were slow to use Facebook, these location-based apps may take a while to gain traction. But if businesses and customers truly embrace the technology, it will only be a matter of time until people are “checking in” everywhere they go.
Obviously, businesses that offer face-to-face social experiences, such as bars and restaurants, have much to gain from these location-based services. But the possibilities are nearly limitless. Trade show exhibitors can use these applications to drive traffic to their booths with special offers. Attendees can find out which booths or sessions are the most popular at any given moment. These services also provide yet another channel for instant customer feedback. If this technology gains widespread adoption, businesses will need to keep an even closer eye on what their customers are saying. With services like Foursquare and Gowalla, customers can complain in real-time and their complaints could have an immediate impact. On the other hand, customers can also praise your business in real-time. If a band is awesome at your venue - a customer can share this with his or friends and encourage them to stop by.
Anyone can register their business on Gowalla or Foursquare by using their smart phone. So, what are you waiting for? Download these applications, create a spot and see who checks in. You might be surprised.