Reward Your Customers For Their Good Behavior!

You’ve probably all heard the latest buzz on Foursquare, the location-based marketing game that has recently been blowing up the headlines.  With over 1.4 million registered users, Foursquare is a mobile application and website that allows you to check in on your phone where you are currently located and announce it to friends and share on sites like Facebook and Twitter. Foursquare also allows businesses to award those who check in frequently with discounts and incentives.

This week, Loopt, the first of the location-based marketing applications, with over 3.4 million registered users, announced a new mobile app, LooptStar, that will compete more heavily with Foursquare and Gowalla, but with more of a loyalty program incentive. Gone are the days of those little punch hole cards that I always seem to lose in my purse! Welcome are the days where your loyalty cards are right on your phone!

So what is the difference between LooptStar and Foursquare? The main difference that I like best is that it uses Facebook Connect instead of creating a brand new social networking site. This way, users don’t have to have multiple networking sites and portals for checking in and receiving discounts. For me personally, one social network (Facebook) is enough!!

Second, it’s main focus is on rewarding customers for their loyalty to their business. Big brands like the Gap and Burger King are partnering with LooptStar to start offering incentives for frequent check-ins at stores.  These stores can then use the data collected through the app to personalize their incentives and customize them to the user – therefore encouraging more return visits to the store, and ultimately more money spent! Using Facebook Connect also allows the sharing of these incentives as well as your whereabouts to your friends.

Why do I think LooptStar with catch on and continue growing rapidly? Three reasons: 1) users will eventually choose one service, as they most likely will not check in using multiple apps, 2) many people are uncomfortable sharing where they are with the world, and 3) who doesn’t love free stuff??

How do businesses get started? Visit the LooptStar website, contact them to become a partner, and you’ll have the ability to customize your campaigns based on time of day or week, location, number of visits, etc. This can be a great way to effectively create a loyalty program for a business and target them in ways other programs have not been able to before!