Location Based Marketing for Business

This was originally posted on WCG’s blog.

This morning, I had the pleasure of moderating a panel titled “On the Location-Based Services Horizon” at the second annual Foodservice Social Media Universe (FSMU for short). Joining me on the panel were three of the smartest folks not only in the restaurant industry but also in the world of location-based services. This group included Rick Wion, director of social media at McDonalds, BJ Emerson, VP of Technology at Tasti D-lite and Lauren Barash, director of corporate communications at Moe’s Southwest Grill.

  • During the hour long conversation, I kicked us off with a few relevant mobile/location-based facts including:
  • Smart phone penetration has reached 50% in the U.S. (mobithinking.com)
  • As of May 2012, 74% of smart phone users claimed having used a location-based service. This includes things like Google Maps. (Pew Internet Study)
  • According that same report, 18% of smart phone users claimed to have checked into a venue like a movie theater using a service like foursquare. That number is up from 12% year over year. (Pew Internet Study)
  • The leading location-based service, foursquare, has approximately 24 million users (LBMA September, 2012)
  • Photo sharing service, Instagram (now part of Facebook), has grown to 80 million users in just 18 months (C|Net)

Following the industry stats, each panelist took some time to talk about what their companies were doing on the location-based marketing front. Here are a few of the key take aways from each:

McDonalds: 1) during key pilots, they have gotten good traction with foursquare in driving increased checkins. 1) After analyzing their mobile web traffic, they realized that a) store locations with details about drive thrus and playscapes b) nutritional information and c) job applications are the top three most visited areas of their site. Their mobile app features those three items. 3) In order to train franchise owners, they have used location-based scavenger hunts (check into a bar/get a tip/complete an action). This has worked well in helping their franchisees understand foursquare and how it works better).

Moes: 1) They have a check-in club that allows customers to connect their foursquare accounts to Moe’s loyalty program. Customers earn points through check-ins and can achieve “rock star” status on Moe’s leaderboard. 2) Changing offers requires a lot of training for staff which sometimes slows the pace of innovation at many retail locations. 3) Moe’s is also working together with their cheese vendor to sponsor a free queso day¬†tomorrow.

Tasti Dlite: 1) BJ and this CEO just wrote/published a book called The Tasti D-lite Way that document’s the companies location-based and social media journey. 2) An early innovator in the location-based space, Tasti D has created a way to connect foursquare, Facebook and Twitter to their loyalty card. When the card is swiped, it auto posts across the customer’s social networks and gives the customer points for each purchase/check-in. 3) BJ thinks that one way retail stores/restaurants can create higher engagement/check-in activity with their customers is to put a customer-facing camera at each register that would capture any willing customers as they checked in.

There were a lot of great tweets from our session as well as from the conference. You can see them here.

  • I said that I believed that Google would ultimately win the race given the recent UI change it made by allowing users from the mobile Google.com page to “use your current location” and then suggest nearby bars, restaurants and coffee shops.
  • BJ thought that a great focus on value exchange from brands and more “celebrating” of mayorships should take place
  • Lauren disagreed with me that Google would win (while agreeing that having one’s place page(s) correct was critical. For her, it’s about more check-ins and better offers/value.
  • Rick suggested that¬†based on activity they are seeing from Radian6 whether or not photos are the new check-ins (McDonalds sees far more customer photo uploads than checkins — to the tune of thousands/day)

Last but not least, here is a list of some resources that I’ve pulled together for the last few LBM sessions I’ve done. Included on that list are links to BJ’s book and a few of the reports referenced in the report. Enjoy!