Liu+J.+Final+Report

Liu J.

proximity a next generation connection

Proximity Research Report

** Foursquare: A New Door to Mobile Network Marketing ** **// Foursquare Network Marketing and How to Utilize It //**

by Jesse Liu

Spring 2010

** Table of Contents ** Executive Summary **1** Introduction: What is Foursquare **2** How Do You Use It? **3** How Could Businesses Benefit From It? **5** Example To Step Up Your Service 6 Recommendations **7** Attachment 1: User Incentives **8** Attachment 2: Tweeting About The Business **9** References **10**

In the past, business starters would spend hundreds of thousands dollars on promotions and ads via listing on local newspaper, listing on YellowPage, radio and TV commercials, then hope to attract more customers. Not only were they expensive but also ineffective. Now, we have computers, mobile smartphones. As technology advances, the idea of conventional ads seems to be less attractive to local businesses and Gen-Y. New generation is depending on Social Networking, such as Facebook, Twitter etc, to promote businesses. Since the introduction of Foursquare, a new Social Networking app, it has gained tremendous popularity. Essentially, Foursquare allows users to connect to their friends and family, at the same time, it’s a great promotional tool for businesses. Proximity clients should start today by joining this new development to see the true benefit.
 * Executive Summary **

Foursquare is a location-based social networking software for mobile phones. Dennis Crowley, the founder of Foursquare, introduced this app in 2009. This was introduced after Google bought out his first development – Dodgeball – a similar text based social networking app. To symbolize the company name, Foursquare currently has an employee base of 16 – squared of 4. In less than one year, Foursquare already has over 600,000 members currently checking in, using Foursquare, it’s going like hot cakes.
 * Introduction: What is Foursquare **

**Figure 1: the idea of social networking** Source: []



Source: []
 * Figure 2: Foursquare **


 * How Do You Use It? **

Foursquare is a mobile app that a user downloads onto their mobile devices. Currently supported devices are iPhone, Blackberry phones, Android phones and Palm. Like most social networking tools, once the app is installed, users will want to hook up with their friends and families. There are two ways you could approach them: integrate your Twitter account and tweet your activities, or invite your friends and family to Foursquare. The built in GPS system on supported phones will allow you to update your current location so your friends can know where you are. It can be dedicated to someone who explores the city(s) a lot. Foursquare is also considered a game comparable to a reward program. Its main feature is to allow users to “check in” at a local venue, and users have an option to review the products they offer and/or services. There are two types of incentives you can earn:


 * Venue Points - For each time you “check in” at local venues and business, a reward point will be honored during non-business hours. Reward points can be notified via Twitter or Facebook. For each new business you visit in the neighborhood, you earn 5 points. The collected points can then be contributed into drinks or food specials as a reward.
 * Venue Badges -Different level of badges can be unlocked depends on how frequent you are to a venue. For each addition badge you unlock, you have the potential to become a “mayor” of a venue. A mayor is a most frequent customer of a venue. Mayors also get free product as a reward.

**Figure 3: Badges** Source: []


 * How Could Businesses Benefit From It? **

Foursquare can be used as friend finder and a city guide. Businesses such as restaurants, cafe shops, hotels and fitness center are now taking advantage of this amazing social networking tool.

Base on the idea of Foursquare, local businesses can also benefit from using Foursquare: The more users “check in” at a business, the better higher sales the business can generate. For instance, if a business is running a promotion on “Buy One Get One Free” pizza deal on every Monday night, and someone posts about it on Foursquare, those who live in the same area could see it. Since it also connects to Twitter, all of your followers will be on board with the event, and even tweeting about it Source: []
 * Gain visibility from the traffic Foursquare produce
 * Bring new potential customer from an existing customer’s social network.
 * Increase sales by generating incentives and different type of special badges.
 * It’s a better way to contribute coupons or promotions through a network
 * Figure 4: Foursquare hits **


 * Example To Step Up Your Service **

Knowing how to utilize Foursquare can make your business unique compare to others. Luxury hotels like the Wynn Las Vegas and Encore have been making use of Foursquare to cater their guests with “refined interestes”.

Jade Bailey, the Estrategy Development Manager to the Wynn and Encore hotels, has been using Foursquare checkins for half year. The way Bailey interacts with the hotel guests is making interesting tips and facts about her hotels via Foursquare. For example, “a Foursquare tip will reveal that the red chandeliers in Encore were inspired by the twirling of a women’s skirt and are made from Murano glass” Bailey said. In addition, Bailey started a promotion that offers Foursquare users who “check in” at the hotels a special treatment – “a glass of champaigne at the Blush Boutique nightclub on the house”

Bailey’s involvement with hotel guests via Foursquare has been positive, and her method has been occupied effectively.


 * Recommendations **

Foursquare is a great business model, not only does it serve as a social networking tool that allows you to be more engaged with your friends and other, it also acts as a city guide and a great marketing tool for local businesses. Users earn incentives by “checking in” a venue often, the venue yield an increase in sales. It’s a win-win scenario for both worlds. It's a great tool for users who want to explore the city, and business who want to be known and earn reputation. = =
 * It’s easy to use. It’s an app that can be downloaded onto your mobile smartphone. Within a few minutes, you can be connected to your social network anywhere you go.
 * Either invite your friends, or make a new friend who just used Foursquare to “check in” at the same venue. Expend your social network and also earn rewards.
 * Businesses can market themselves by tweeting their promotion, such as “free drink on the house”, “buy one get one free” etc.

In the follow attachment (see attachment 1), you can see that the user with the most point on the leaderboard among their friends. Points were earned via "checking in" a venue. And Mediaeaster has the most points.
 * Attachment 1: User Incentives **

Attachment 1: Foursquare Ranking


 * Attachment 2: Tweeting About The Business **

In the following attachment (see attachment 2), you can see how one person tweets about a buyer card and a free drink this business offers, and how their friends on the network respond to it.

Attachment 2: Foursquare Tips


 * References **

D’Souza, Roslyn, Local Businesses Benefit From Foursquare. Retrieved May 17, 2010 from []

Eitel, Joe, Foursquare: Better than Twitter? Search Engine News (2010, April 19). Retrieved April 22, 2010 from []

Grove, Jennifer Van, How 5 Brands Are Mastering the Game of Foursquare (2010, April). Retrieved May 18, 2010 from [] Jary, Simon, Foursquare review, Techworld (2010, January 22). Retrieved April 22, 2010 from []

Strickland, Marta, Foursquare, You Can Stalk Me If You Buy Me A Drink! (2010, March 12). Retrieved May 17, 2010 from []