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“Hyperlocal” is the buzzword behind Foursquare and other location-based programs. Geo-apps use the GPS in your mobile phone to show exactly where you are (sometimes described by longitude and latitude). Don’t knock yourself out trying to understand why people would want to post such information. For now, accept that thousands of adults in your target geography are doing it every day. At the dry cleaners, the popcorn shop, amusement parks and museums. Seriously.
What you need to know is how to reach those people, because I promise you, your business is already involved in their game; you just don’t know it.
Brightkite was one of the first location programs -- Local businesses sign on to create their own mini-page, coupons and other local promotions that are strongly supported by the developers. Users can “group text”, reaching up to 25 people at once. All 25 users see each person's replies and comments.
You might like the set-up better at Gowalla, but it’s Foursquare that's generated the heaviest buzz. You can find comparisons online, but it’s obvious that Foursquare is a hit (1M+ users) because it’s game-like structure is actually fun.
Every time users check in to Foursquare from a certain type of business (Starbucks, art gallery, karaoke bar...you name it) it's tallied and compared to other users. Check in enough to a certain type of business and you'll earn a badge. This is where the addictive nature begins to kick in. Everybody wants the badges, and they do have creative names and categories, "Jobs" for 3 Apple store visits. "Don't Stop Believing" for 3 karaoke bars. " Jet Setter" for 5 airports. "Gym Rat" for, well, you can guess what that one's for.
If you continue to check in, and you do it more than anyone else in a particular location, you can become Mayor of that place. Competitive addiction complete.
WHAT YOU NEED TO KNOW: Once you’re verified as the owner of a business, you can order window decals to tell all of your company's guests that you are Foursquare ready, and you can download a dashboard with analytics on the people visiting your biz, including:
— most recent visitors
— most frequent visitors
— the times of day people check in
— total number of unique visitors
— a histogram of check-ins per day.
Now you can have a party for your mayor, or introduce new services to this very special group of customers. One estimate figures that services like Foursquare may account for as much as $4.1 billion in yearly advertising spending in just 5 years.