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Designing and Delivering a Location-Based Marketing Program

May 10, 2011

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Today’s Presenters

Mike Schneider: SVP Allen & Gerritsen, Co-author Location Based Marketing for Dummieshttp://schneidermike.comhttp://twitter.com/schneidermike

Aaron Strout, Head of Location Based Marketing, WCG, Co-author Location Based Marketing for Dummieshttp://blog.stroutmeister.comhttp://twitter.com/aaronstrout

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What is Location Based Marketing?

Location Based Marketing: is the art of engaging your customers and prospects using services like

foursquare, Facebook Places, Yelp, Gowalla and WHERE to drive loyalty,

word of mouth marketing and referrals.

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The Golden Rules of LBM

1. Stake your claim to places pages in every system. Do not be afraid to try more than one.

2. Connect with mayors, ambassadors, leaders, duchesses, chiefs, poobahs and sheriffs.

3. Test, learn and optimize – especially while costs are low with risk low and return potential high.

4. Follow the Ben & Jerry’s Rule5. Be creative and build your own thing using

an API

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1. Stake your claim

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2. Know your influencers

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3. Test, Learn and Optimize

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4. Create a GREAT Offer

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5. If You’ve Got the Chops, Try the API

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THE PLAYERS

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Who Are Some of the Location Based Players?

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Who Are Some of the Location Based Players?

Yelp was founded in 2004 to help people find great local businesses like dentists, hair stylists and mechanics. As of January 2011, more than 45 million people visited Yelp in the past 30 days. Yelpers have written over 15 million local reviews.

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Who Are Some of the Location Based Players?

Launched in August of 2010, Facebook Places allows you to share where you are, connect with friends and find local deals. Any of Facebook’s 600 million users can use Facebook Places.

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Who Are Some of the Location Based Players?

Foursquare is the granddaddy of location based services having launched as Dodgeball back in 2001. After being purchased by Google in 2005 and then divested in 2009, they reemerged in their current form. With over 8 million members, they are easily the most popular of all the LBS platforms.

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Who Are Some of the Location Based Players?

Austin-based Gowalla launched in 2009 and have quickly picked up steam. While they have about 1/5 they users of foursquare, their stunning venue icons and virtual goods have kept them top of mind for many businesses like Disney.

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Who Are Some of the Location Based Players?

While Where is a late comer to the LBS game, they are easily one of the most innovative. And most importantly, they will be one of the first LBS to unlock the power of local advertising.

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Who Are Some of the Location Based Players?

SCVNGR is probably the most different from any of the other LBS in the sense that 1) they are making money and 2) as their name hints, are laser focused on providing a platform on which businesses and universities can set up elaborate scavenger hunts.

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FUTURE CHECK-INS &SEMANTIC SHARING

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Looking into the future

• Applications like Plancast and Ditto allow us to tell people where we will be and what we want to do.

• They give us a semantic way to announce our intent.

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Semantic Sharing

• What if you could use the data from other apps to answer make suggestions?

• Making a suggestion with a dish or place unlocks a wealth of information.

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CASE STUDIES

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McDonald’s foursquare day Campaign

• McDonald’s randomly offered $5 and $10 gift cards to users who checked on foursquare day (4/16)

• Results:• Generated 2,865 total check-ins• Increased check-ins by 33%

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AT&T and Toms Shoes Gowalla Campaign

• Created a unique reward (going to the 1 millionth shoe drop) for users who checked in at various technology and apparel stores.

• Offered rewards such as smart phones and netbooks from AT&T.

• Results• 5,500+ people entered • 25% chose to share the news via Facebook and Twitter • 2,000+ checked into AT&T stores • 950+ likes related to the Gowalla, Toms Shoes and AT&T program on

Facebook• 522,000+ users reached via more than 700 tweets following their check-

ins

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Buffalo Wild Wings SCVNGR Campaign

• Users do challenges on SCVNGR for prizes such as free soda or Buffalo Wild Wings gift cards.

• Challenges include taking a picture with a fan. • All of the points go toward the grand prize of a

trip to see the NBA finals with Scottie Pippen.• Results

• Ongoing campaign through March.

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Murphy USA Whrrl Campaign

• Designed a location-based loyalty program. • Made a Murphy USA Whrrl society to

• Reward most loyal customers• Build a customer community• Activate customers in the real world• Promote its brand through social media• Virtual scratch tickets offer members a chance to win prizes.

• Results:• 44% of society members had never been to Murphy USA

before• Society members visit Murphy USA on average 4x per month

while 50% of society members visit 6x per month (the industry average is 2x per month)

• The average purchase by society members is $30 (the industry average is $15)

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Hugo Boss foursquare Campaign

• Users who checked in at Hugo Boss stores in New York City received a free catalogue and a chance to participate in a raffle.

• Users also received an art guide with information about art and other places of cultural interest.

• Left tips and things to see on other foursquare pages.

• Results:• Ended January 2011. Still waiting on results.

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USA Today foursquare Page

• USA launched a branded foursquare page where they leave tips at various travel hotspots and hidden treasures across the country.

• They have a 10 Great Places feature and relevant tips on restaurants, shopping areas, bike trails, historic landmarks, and nightlife.

• Results:• About 300 tips left at various locations across the

US.

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Thank You!

Mike Schneider: SVP Allen & Gerritsen, Co-author Location Based Marketing for Dummieshttp://schneidermike.comhttp://twitter.com/schneidermike

Aaron Strout, Head of Location Based Marketing, WCG, Co-author Location Based Marketing for Dummieshttp://blog.stroutmeister.comhttp://twitter.com/aaronstrout