Same Old Story: Location Based Services And The Marketers Who Love Them
July 27th, 2010In April I wrote a post for this blog about the value of location based services such as Foursquare and Gowalla. I suggested that those who deride LBS’s hold their criticism for a bit and look for the value. At the time, I wrote of “LBS’s” as one single entity because that’s just what they seemed to be – at least in the eyes of marketers: “let’s use check-ins to market our product, event, or venue.” But once you’ve made that jump, where do you go from there?
Last week’s unfittingly named MITX event “To Check In or Not To Check In?” provided some insight as it featured representatives from three location based services working their way through the LBS ecosystem. I say the event wasn’t properly named only because the question being answered wasn’t “should I check in?” or even “should I use an LBS as a marketer?” Rather, the discussion focused on which services were best and how to leverage them effectively.
The panelists themselves were informative, and Allen & Gerritsen’s Mike Schneider did a good job directing the conversation (though, with the exception of Yelp’s Leighann Farrelly, everyone was tweeting while sitting on stage – rather distracting). Perhaps the most poignant thing said, however, came from an audience member (whose name I do not remember, unfortunately). The discussion was revolving around how venues or brands can use an LBS to engage their consumer base when this gentleman pointed out that “nothing beats face to face engagement.” Seems rather obvious. But then again, here we were, talking about how to leverage digital visitors to real stores.
Phil Thomas DiGiulio from Pegshot noted that every brand has a story to tell, and telling that story is what brings brands and venues face to face with customers. But I’d argue that the beauty behind the location based service is that it provides the complete opposite: now consumers can tell the story the way they see it. Here’s another way we can start to build brand advocates or tap into the insight our consumers are providing.
At the beginning of the session I tweeted, saying that I had yet to see any sort of true differentiation between most location based services. But by the end, there were obvious stand outs: Pegshot lets users tell their story via photos, Yelp lets users tell their story via text reviews, and – as Mike pointed out – Foursquare lets marketers decide how consumers will tell their story via the API (I’m sorry to say, but the fourth panelist, Wayne Sutton from TriOut, has yet to convince me of its unique value).
Afterwards, I approached Pegshot’s Phil (who, it turns out, is a die hard Philly sports fan – win!). I told him that I’m taking my iPhone out when I walk into the restaurant, but I’m only going to open one– maybe two apps. How does he make sure one of them is his? He responded that they need to have a good answer for that question, but that he hoped his user experience trumped what others could do. We’ll see. I really like Pegshot, so I hope he wins.
In the months since my first LBS blog post, I’ve slowed my Foursquare use significantly. I still use it at venues where mayorship may provide value (discounts at Starbucks and WholeFoods). But for the most part, I’ve turned to other services (Whrrl, Foodspotting, Pegshot) because they let me share more than just “I’m here!” They let me tell a story.





