As much as we do not want to admit it, geolocation tagging continues to trend up. It is still in its infancy and most are just discovering its power, but services like foursquare continue to provide solid options for business to create new customers.
Most business are scrambling to capitalize on the potential of services like foursquare while others (and these guys as well) are setting the market on how to use services like foursquare to create business.
Lets talk about the future of foursquare and geotagging
Imagine walking around downtown Dallas with your friends. You are on a search for great shops, good food, and great fun, but you are on a budget. As you walk you decide to check into the downtown Dallas area. After a quick tweet and status update you start receiving by email, text, or app 5 coupons specifically made for you. This is just another normal day spent in the geotagging world, or at least a future day in the geotagging world. This might scare you a little, excite you a lot, or just plain confuse you, but the direction that most businesses are taking is trending more towards competing for your business then expecting it.
You might be wondering, why would any business offer me 20% off any purchase just for checking into their shop? It’s simple, because those that offer deals are those that win. We have shifted from a society that simply views a store as a place to get what you need into what can the store give to me.
I call this the Groupon Model.
What Groupon is doing is nothing new. We have had coupons with us for a very long time. Where they have changed the market is they have brought it digital and made it a can’t miss opportunity. If you see that scuba lessons at your local YMCA are $114 and are originally $340 you jump all over that deal. Granted, you will probably never scuba dive, but you are saving over $100 on something that looks like fun. Businesses are starting to catch wind of this idea and are starting to offer up deals in hopes that you will take the bait. The groupon model is all about grabbing your attention to something that you would never consider before but are now willing to spend $40 to $200 in the name of a great deal.
Let us head back to downtown Dallas, you and your friends are getting hungry but cannot make a decision on where to eat. You head to your foursquare app to see some of the deals that are around you and see a great little pizza place that is offering half off the first pizza with a check-in and free pizza to the mayor. This is a great deal, you and your friends are now going to be eating pizza for lunch and probably return to get the mayorship so you can get free pizza any time of the day. Everyone wins, this pizza place has the opportunity for new business and you have now saved money on lunch.
The Groupon Model excites me because it changes the way business advertise, market, and do business. It also places the power in the users hand and lets them decide who is doing good stuff. This very well could bring back the small businesses and boutique shops. When business compete for your eye we all win.