Location-Based Networking & Small Business

As we noted in a previous post, location-based apps and games (FourSquare, Gowalla, MyTown, etc.) are all the rage in the social media realm. But as with many new tech's and trends, it is still unclear why and how these tools should be used by small businesses. That said, a number of small businesses are leveraging these tools to drive more business and increase customer engagement. It may not be for all SMB's, but a few specific types of businesses that should take a hard look include:

  • Retail - Because these apps focus on location, they make for a perfect match for retail businesses. Uber-local promotions can be offered to consumers who are checked-in at nearby locales. Imagine the power of receiving a notice of a 40% sale for a retail shop next door while sitting in a Starbucks. 
  • Bars, Restaurants & Coffee Shops - Think of it as a digital version of a buy-10 get 1 coffee card or the mug club at your local bar. These tools allow owners to track and incentivize their most loyal customers for checking in frequently. Some shops are going as far as offering free drinks to the person who has checked in the most (or the mayor as foursquare refers to it) 

  • Direct Sales - Any SMB who relies on networking and outside sales to create new business can benefit from these tools. By engaging prospects with location-based tools online, a bridge can be created between real-world and online footprints. A sales-person attending a conference or networking event can use the tools to create additional opportunities for dialogue with prospects while on-site at the event. 
Which app will come out on top in unknown but there is a good chance that one of the pack will emerge as the clear leader by the end of 2010. Just as with any new web tool or trend, an established outreach strategy is key to long-term progress. SMB's must be careful not to get caught up focusing on tactics, or their social media outreach plans can become irrelevant as quick as the technology. Need a primer location based apps? Check out Mashable's Location-Based Guide, Foursquare for Business, or DuctTape's Foursquare overview

 

Guest Author: Neil Callanan

Neil is a DC-based entreprenuer and most recently the founder of startups DeGeeked.comFitFeud, and LooseGrip Communications.

Posted in: Small Business on Mar 4, 2010 by Neil Callanan. |

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