Location based applications are the darling of web development and internet marketing. Mobile Applications such as Foursquare, Gowalla, Yelp, MyTown, and Whrrl are receiving the attention of many large businesses.
As smartphones become more of a necessity, the wallets of the smartphone owners have become irresistible to retailers. An application such as Foursquare begins as a game to the user. When they check-in to a location they gain points. When they reach an achievement (such as checking in at a convenience store at 3:00 am) they receive a badge. Besides just a badge, customers receive rewards and discounts for checking into location a certain amount of times. Frequent check-ins can reward the user with the title of “mayor” of that venue; which can lead to more discounts for their loyalty. An example of this happened last year: Starbucks offered a nationwide mayor special to all its stores. Every mayor of any Starbucks location received a single $1 Frappuccino coupon. This shattered records on check-ins in a one week span at many locations.
Only 6% of adults in the United States are actually using location-based apps like Foursquare. Although this number is small, they are highly influential. In 2010, 16% of online adults in the U.S. were familiar with geo-location apps, while 30% said they are aware of the category in 2011.
With the growing audience of active social media users to share the thoughts and opinions on Facebook and Twitter, geo-location applications have grown in popularity. 17% of users who use geo-location apps are intrigued by having more insight about their travel or movement patterns on a day-to-day basis. Path 2.0 is an application that provides a time-stamped journal of journey throughout a day. An individual can share their check-in’s, Instagr.am photos, blog-like thoughts, and songs they are listening to. As long as users are willing to share, this can provide a very detailed insight into consumer buying patterns and trends.
Although these applications are exciting, one of the growing concerns with geo-location applications is privacy and feeling like brands are stalking their customers. Once a customer’s trust is lost, it is hard to regain. A way to handle this is to give customers the choice to opt-in and opt-out of advertisements and promotions. By giving the user the option to do this, it will avoid the feeling of being spammed or stalked.
The biggest adopters of geo-location applications are retail stores. Nine out of ten mobile internet users have logged on while in a store to research the product they are buying. Fifty percent of those mobile internet users continue on to make the purchase. Retail stores measure the success of these programs in a variety of ways, including increased foot traffic and increased revenue per transaction.
Major tech companies such as Google have continued to utilize these services with their platforms. For Google, besides Google Maps and Google Places, mobile application “Google Latitude” allows for users to view on a map where their contacts and friends are, while getting directions to those locations. Facebook also is furthering their adoption with Foursquare and Facebook Places by allow users to check-in to events they have created on the Facebook platform.
Although badges and points are fun, the games can only last for so long. When the game is losing its thrill, marketers need to find ways to keep their customers engaged. This can be done by providing relevant information to their users and leveraging location information to make the experience more convenient. The experience and the interaction of geo-location apps has the potential to cause a shift in internet marketing and social media.
For more information or to schedule a free consultation with Peerless Media Group, please contact us today.
Happy Holidays!
Hardley Jeannite Internet Marketing Specialist Peerless Media Group

