Foursquare is rolling out “local updates” to it’s service. These allow businesses to more proactively offer deals on the service. But is it a smart idea for local businesses?
This is a long-standing debate about which customer segments should receive the best deals. Do you reward your best customers with a deal? Or by doing that are you giving up revenue, since your loyal customers would have spent with you anyways? But if you reserve deals for newbies and occasional shoppers, aren’t you punishing your loyal customers for shopping with you?
The answers aren’t so black and white – a smart program can reward loyal customers without damaging revenues of course. But usually that requires the brand to own that communication. So when it comes to Foursquare, brands need to ask whether it makes sense to reward folks for checking in on the service.
Foursquare is hoping it does, so it can monetize the services it provides to businesses. What do you think?