Foursquare is starting a new marketing component to its trendy mobile apps. The location-based service platform has incorporated daily deals with partners Living Social, Gilt City, BuyWithMe, zozi and AT&T (YP.com deal of the day) in Atlanta, Dallas/Ft. Worth, and Los Angeles.
Foursquare co-founder and CEO Dennis Crowley told the Wall Street Journal in an interview that his company is passing on daily coupons from these marketing partners to Foursquare users while taking a cut of the revenue. “We are trying to see if our targeting works and how users will react,” Crowley told the Journal.
The users should benefit pretty darn well from the daily deals — nothing wrong with getting a discount while checking in to a sandwich shop or hair salon.
Crowley’s company works directly with about half a million merchants, small and medium-sized businesses. Through these merchants, Foursquare users, who check-in at the locations, are deliver specials that includes discounts and freebies.
Foursquare generates no income from these “check-ins”. However, Foursquare’s user base is growing with a recent milestone of passing 10 million users.
According to Foursquare’s blog, “starting this week, foursquare Specials will now include ‘Deals’ – deep discounts that you buy ahead of time.”
Foursquare boasts that the platform will “help you discover the deals that are right for you”. The company runs all specials through their personalized Explore tab. So, you only see specials that are right for you, and you also see why the specials are right for you because you might notice that your friends took advantage of them as well.
Now, this is what I call a real benefit for all concerned. The merchants win, Foursquare wins and most of all the users win because they are sent only specials that pertain to what they like or share with friends.