When you bring up the topic of Geolocation (GL), most folks immediately think Foursquare (4sq), Gowalla, Whrrl, SCVNGR, or one of the dozens of other platforms;  Talk about it a bit further and the common viewpoint is they are all somewhat game based and that there is no practical use (yet), especially for businesses. 

I had the pleasure yesterday of sitting down with Aaron Strout (@aaronstrout), CMO of Powered Inc, and we would both beg to differ.  While Geolocation as technology does have a cloudy future and a multitude of possibilities, there is an immediate benefit for businesses. The technology it its’ current state is especially beneficial to the small and medium-sized businesses.  In the most basic of uses, all of these technologies provide real-time qualified leads for your business.  As a bonus, the hard part, cultivation, has automation potential with available APIs.  Sound too good to be true?  Here are a couple examples Aaron and I discussed.

The Valiant Failure

Aaron was the 4sq ’mayor’ of a Starbucks in Westlake Hill (Austin, TX).  In short, this means he went there very often.  At one point, a local coffee shop opened across the street, noticed the frequency in which Aaron went to Starbucks (thanks to manually checking 4sq) and messaged him.  They asked what it would take to get him to check out their shop.  Aaron replied back, that they would need to offer a great Cafe Americano and the same 10% discount he was getting at the time and he’d be happy to switch.  Except the new shop didn’t stay engaged.  Lack of follow through really killed them.  Instead of gaining Aaron and anyone he recommended the shop to, they got nothing. 

The point here though, is that the information for qualified customers is available.  Use it and, unlike the local shop here, follow through.  If you own a small shop of ANY kind, especially ultra competitive niches like coffee or sandwiches, get plugged into all the main GL platforms.  You should be automatically monitoring every other shop within a defined radius, then reaching out and engage you future revenue.  These days, all anybody wants is a reason to switch or try something new.  Give them permission, welcome them to try something new and make it easy to change. 

Destination Experiences

Another interestingly competitive arena is vacation destinations, especially destinations with many similar activity options like Napa Valley or Lake Tahoe.  While certain aspect of a vacation will be set, such as the hotel accommodations, often dinners and the day trips are not firm until arrival.  How can a business capture these vacation nomads?  You guessed it!  Geolocation monitoring.  But how? 

Let’s focus only on Napa and imagine for a moment we run a vineyard.  The majority of the incoming tourist will land in one of four airports, SFO, OAK, SJC or SMF.  These airports are also are major check in spots on all of the GL platforms.  Let’s monitor these four airports non-stop for check-ins that mention wine, tasting, wine country, or Napa.  The moment someone lands and makes known their sommelier intentions, we sent over a tweet, Facebook message, any note, to first let them know we are listening, and second let them know how we can make their vacation experience better.  But don’t forget the hook.  Think something simple: “We see you are en route to the valley and we would love to have you for one of our evening tastings.  If you are able to RSVP with us within the next 12 hours we would love to provide you with a complementary bottle of wine”. 

Simple, effective, easy to manage.  For those, including myself, screaming about ROI, that’s also easy to compute.  As with about everything covered in my posts though it comes down to committing to the conversation and following through 

I’d like to challenge any small business to try out these ideas for a couple weeks.  Please let me know of any success stories as well as any challenges and we can use it in a future post.

Comments
  1. Aaron Strout says:

    Glenn – great post. And even greater conversation yesterday. I love how you’ve encapsulated some of the highlights here in your discussion of business opportunities around location-based services!

    Aaron | @aaronstrout

  2. I view Geo-Location as LBS 0.5 we have not even gotten to 1.0 yet. And just wait for 2.0

    The key for all services to succeed is we need to condition people to Opt-In. While the ‘games’ can be viewed with Skepticism they are opt-in. The most powerful form of engagement.

    I see the evolution of the real money making services being 1] private 2] immediate 3] rewarding. We definitely don’t want our mobile devices being assaulted with non-stop offers that buzz us (we have email for that). But when we can privately transact with a Brand or Store then will be huge. Then when Social Media 2.0 comes where we can truly share with chosen groups/individuals (not talking Facebook here) we will be able to pass info on deals on.

    My only concern with your Travel scenario is the volume of businesses that if they knew I was going to Napa or Tahoe would want to contact me…technically 100′s or 1000′s. So LBS 2.0 will be able to sort this out tastefully and respectfully. Remember highest bidder does not serve the consumer best because that just is based on how much someone is willing to spend to advertise vs what really is best for the consumer. I am very vocally against push advertising for Mobile.

    So taking your travel scenario I should be able to send a command to the LBS cloud and ask only for Sushi in Napa or South lake Tahoe vs having every restaurant send me offers once they know I am heading there. We already have a ton of sources for viewing all the deals at once why repeat them?

    • glennbanton says:

      Thank you for your comments Howie.  I am 100% with you on all of your concerns, esspecially the whole idea of “push” mobile marketing.

      Specific to the whole idea of “push”, there is a very fuzzy line that involves both an opt-in (of sorts) and the non-automated (read: a human communicating independently with each future customer) conversation that should at least allow tailored messages to cut through the noise.  While various group and local based discount and coupon systems exists, what I am interested in is true customer engagement and the sharing of an experience.  While difficult, I still see SMEs as the most likely to succeed.

      The intention is to get some companies to actually use LBS, which as you say is in its’ infancy.  And I see a huge upside in the SME space.  While there is the longer term fear that you might get 1000s of messages, currently there is nearly nothing.  As with many newer technologies or iterations of old ones, first adopters tend to create an advantage that they can ride into future versions of the technology.

      I’d like to keep an eye on your views as LBS matures.  I am sure we can both also agree that we have no idea where the tech will actually be in even a year.  Currently, there are a whole bunch of puzzle pieces set on a table, but they might make 10 different puzzles.  It will be interesting to see what then future holds.

      • Ryan Neu says:

        All very interesting comments on the current state of the LBS space. It sounds like everyone is in agreement that “push” marketing is NOT the future…at least we hope. And I couldn’t agree more that LBS is in its early infancy.

        With regards to weeding out the “noise”, I think that the solution is a broad rewards program. Let’s go with the Napa example. You land in SFO, rent a car, and drive up to Napa. Now what? You pull out your phone, see what locations are around you, and see which locations have LBS rewards. Hungry? You might head over to Bistro Sabor because they offer a free taco for every checkin or each time you snap a pic and post to twitter. Thirsty? You might choose to go over to Robert Mondavi Winery because they offer a discounted tour/tasting when you do the “taste your favorite Cab challenge”. With a broad rewards structure, available to all retailers, user decisions will be based upon 1) locations w/ incentives and 2) degree of incentive. For example, I may have chosen to go to Robert Mondavi because their tour/tasting discount was greater or more appealing than the reward at Grgich Hills.

        As long as you can clearly determine which locations offer incentives, you can intelligently compare rewards offered and chose where to go based on the level of incentive.

        -Ryan
        @ryanSCVNGR

      • glennbanton says:

        Thanks Ryan for adding to the conversation. Since you didn’t drop it – I recommend anyone reading this to check out “SCVNGR Partners With VinTank to Bring Location-Based Services to Wine Industry”

  3. [...] Banton touched on this concept of commitment to conversation in a recent post on practical uses for geolocation services. One of the examples he cited was a missed a local coffee shop’s missed opportunity when I [...]

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