2009 saw the rise of location-based social applications, such as Foursquare and Gowalla, which have tremendous potential for businesses. Though barely a year old Foursquare has nearly 1 million users. Gowalla, its main competition has about 150,000 users. April 16, 2010 was declared Foursquare day by the company via Twitter, and Manchester, New Hampshire declared official "Foursquare Day" in the town.
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Use for Business
Owners take control of their business on Foursquare and add prizes and incentives for repeat traffic. This is essentially a 21st century "customer loyalty program", with customers returning time and time again to get points, badges, and whatever incentives you choose to offer. This is a cheap (or free!) way to increase foot traffic to your business.
A new service called "SnackSquare" is an aggregator for the various food specials available through FourSquare, and has the potential to drive even more traffic to your restaurant!
Gowalla
FourSquare; FourSquare for Businesses
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