A couple weeks ago, I finally purchased my new Droid phone.  This led to an increased frequency in my Foursquare posts – the posts you see on Facebook and Twitter stating that someone has just “checked-in”.  Now that my friends and followers are seeing these posts I’m getting more questions about Foursquare, so I decided to shed some light for those that are in the dark on this unique social media application.

It’s Good for Businesses

Quite frankly, if it didn’t show some value for my small business customers, I wouldn’t be so enthusiastic about Foursquare.  It’s good for business because it has the potential to send out your brand from a trusted source to hundreds of people every time a customer enters with a cell phone!

Here’s How it Works

Let’s say I am sitting at the Sigma College of Small Business offices in Haymarket, VA and decide that I need a cup of coffee and something sweet.  I walk across the parking lot to Cupcake Heaven.  While I wait for my tall decaf coffee and afternoon treat, I turn on my Droid, open the Foursquare app, select Cupcake Heaven from the list of nearby venues, add a note about how great the service is and “check-in”.  This automatically sends a post to my Facebook and Twitter accounts and all my friends and followers see my comment and that I am at Cupcake Heaven.

So, do the math.  If 5 customers like me walk into the store and each of us has 200 friends and followers, the name of that store is promoted to 1,000 people that day.  Cost and effort to the store – ZERO!

Why Would a Customer Check In?

Just read your Facebook posts.  I get posts from people when they wake-up, go to bed, eat, stub their toe, etc… So people will check-in just to be social.  However, Foursquare offers tools for businesses to encourage customers to check-in.  As the manager of Sigma College of Small Business I “claimed” my venue and can now offer specific promotions to people who check-in.  Promotions can be based on number of check-ins or given to those who check-in the most – The Mayor.  That’s right, if you are the person who has checked in to an establishment the most, you are given the title of Mayor, which is announced to all your friends and followers.  People will definitely check-in for free stuff and a title!

There’s More!

As the registered owner of your venue, you have the capability to see who is checking in at your place and how often they are checking in – a great way to keep tabs on some of your most loyal and vocal customers.  If you are a retailer or restaurant and not using this free tool, you need to put it on your list of things to check out.  I’m still researching all the benefits, but this one seems to be a no-brainer, just set it up and let your customers promote your business!  Did I mention FREE?

I’ll certainly be adding a few slides on Foursquare to my “Leveraging the Online Social Network” class this coming Tuesday!