Foursquare

What is Foursquare?

Originally, the foursquare was one of the games played by American children on the playground. The ‘foursquare.com’ is an application, which adopted the concept of the original game by using GPS in smart phones.

As a location-based social networking Service, the important functions of ‘foursquare.com’ are as follows:

- Mayor :
A user, who checks-in at a certain place or store more than other users becomes the mayor of that place and gains more authorities.
This brings a structure of competitiveness, which forces users check-in more and more to maintain their positions as mayors.

- Badge:
There are many levels of status. (ex. Superstar, adventurer, newbie) Different levels of status can enjoy different levels of benefits from the registered places or stores. This enables social marketing of users and new business model is thus found.

- Availability to connect other businesses:
Foursquare also pursues open api just like SNS-(Tweeter and F8 of Facebook). Therefore several business models have appeared based on foursquare.

Business Model of foursquare

The more you investigate on foursquare the more you will be surprised to find the endless possibilities of foursquare.

1. Creating new Information
The largest beneficiary of internet is portal site such as Google. According to it's business model, eventually, portal sites sell to customers tons of information using search engine.
But the limit of internet lies on the fact that it doesn’t have mobility. (Google will not be able to find a small store in a country)

5 years ago in Korea, Yahoo Korea, as a means of enforcing network advertising, started a location-based service but suffered a big failure.

LBS(location-Based Service) of Smart phone will overcome that failure thus will be able to create an unbelievable amount of information. I think, after 10year, value of foursquare will surpass that of Google.


2. Making loyal customer
Using strategies such as ‘Mayor’ and ‘badge’, foursquare will be able to make loyal customers, who will continuously visit the place or store.

The shops, which experienced the promotion ability of foursquare will want to be loyal partners of foursquare. So the shops will hold more events or promotions to enforce relationship with foursquare.

Above strategy will become a origin of profit of foursquare.

3. Abilities to connect in other Inderstries
Foursquare is not only for small shops or stores but also for the advertising activities of big companies.
In fashion week of New York, which is one of the largest event of fashion industry, foursquare cooperated with lucky magazine and gave out badges from 700 stores. Marc Jacobs, one of the participants, gave their customers with badges an opportunity to participate in a fashion show.
Those who participated in the fashion show posted their experience in Marc Jacob’s fashion show and the information was spread out to other blogs. This rapid spreading of information brought good marketing effect for Marc Jacobs.