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From the article: "you've checked in for the tenth time and earned a free espresso drink." Foursquare, and the users of foursquare, would love to see this but

From the article: "you've checked in for the tenth time and earned a free espresso drink." Foursquare, and the users of foursquare, would love to see this but the businesses themselves would not. I worked for a targeted coupon agency and the kind of people who routinely visit and buy your product are exactly the kind of people you DO NOT want to give coupons to. These people are already loyal customers. Coupons are more effective if they target either new users (target starbucks customers to get a free coffee to visit our cafe instead) or increased consumption (if you buy a large coffee get a discount on buying our ice cream).

ryanelkins 17y ago
Sure, it makes sense that you don't want to incentivize those who need no incentive, particularly when the incentive is a discount on something they would have done anyways. It might be more attractive to businesses if they could increase business beyond what would naturally happen but I think the rewards could definitely be tailored to that. Having said that, many businesses have punch card or points type systems that this could replace or augment. Subway is a good example. These are tied to actual purchases rather than just check-ins and the possibility of abuse is very real in that case, so another point to consider. I think having visible goals and rewards that people can work towards over the lifetime of their relationship with a business, rather than simply on a transactional basis (spend $50 get free shipping vs get free shipping for life when you spend a total of $1000 over any number of transactions with us) can work towards increasing consumer loyalty which could be very valuable.
Psyonic 17y ago
What about frequent diner cards? Every 10th meal gets one free? I've seen this at quite a few places, and it seems to be exactly the opposite of what you're saying.

ryanelkins 17y ago

Sure, it makes sense that you don't want to incentivize those who need no incentive, particularly when the incentive is a discount on something they would have done anyways. It might be more attractive to businesses if they could increase business beyond what would naturally happen but I think the rewards could definitely be tailored to that. Having said that, many businesses have punch card or points type systems that this could replace or augment. Subway is a good example. These are tied to actual purchases rather than just check-ins and the possibility of abuse is very real in that case, so another point to consider. I think having visible goals and rewards that people can work towards over the lifetime of their relationship with a business, rather than simply on a transactional basis (spend $50 get free shipping vs get free shipping for life when you spend a total of $1000 over any number of transactions with us) can work towards increasing consumer loyalty which could be very valuable.

Psyonic 17y ago

What about frequent diner cards? Every 10th meal gets one free? I've seen this at quite a few places, and it seems to be exactly the opposite of what you're saying.