Foursquare, which debuted in 2009, quickly popularized the idea of “checking in” by way of an app that would tell your friends and followers if you were at a certain store, restaurant, or theater.
The idea has since been adapted by both Facebook (with their “Places” feature) and Google (with “Latitude”). But now Foursquare is bringing in a partner to introduce a whole new level of “checking in.”
The New York start-up will team with American Express to offer card holders discounts for checking in at certain retailers. While Foursquare users are already familiar with receiving awards, like coupons or being designated “mayor” of a spot for checking in often enough, the Amex deals will much more considerable.
An enterprise like this may help both companies. A Pew poll in May showed that only four percent of American adults use check-in services like Foursquare. Checking in has been slower to catch on with people who do not live in dense urban areas, where gatherings with friends are usually short taxi ride or metro hop away. With this partnership, checking in through Foursquare could be more about receiving discounts than meeting up with friends.
On the other side of the deal, American Express hopes to reach a younger audience. “We don’t tend to skew under 35,” Edward P. Gilligan, vice chairman of Amex, told the New York Times. “We hope this will help us stay relevant to younger customers.”
The deal also has a leg-up on coupon sites like Living Social and Groupon, as they play in to attracting business to places people may not have shopped at yet. The Foursquare/Amex offer tailors to places customers already frequent. It also eliminates any need for a printed coupon, or even scanning a barcode off a smartphone screen – all the work will be done behind the scenes, electronically. The shopper just needs to tap and swipe.
At first, deals will be offered at clothing store H&M, Sports Authority, and a variety of restaurants in New York City. Shoppers who check in at H&M and spend $75 will get a $10 credit. At Sports Authority, shoppers who spend $50 will get a $20 credit.
The check-in and save experiment was tested out at this year’s SXSW music and tech festival in Austin. Cardholders who had access to the special deals spent 20 percent more than cardholders who were not in the test program. According to Mr. Gilligan at American Express, the program brought the highest response rate than other offer they are currently exploring.
The only drawback is a big one for Foursquare: they will not be sharing in any of the revenue this partnership creates. While this deal does show that Foursquare, which has recently surpassed 10 million users, has matured, how will they translate that maturity into dollars?
No comments:
Post a Comment