Foursquare Wants to Beef Up Check-In-centives

There was an interesting conference session recently that involved Foursquare and the company's next phase of development. According to AOL's Daily Finance, Foursquare CEO Dennis Crowley suggested that at some point Foursquare might try and get users to link their credit cards to their accounts. On a more mundane level he also said that there would soon be more tangible incentives for consumers to check-in:

Dennis Crowley, co-founder of social networking website Foursquare, says businesses may soon offer consumers the option to link their credit card to their favorite social networking website, or the opportunity to earn a slew of new incentives to actively promote an advertiser's products and services . . . Crowley . . . acknowledged that his website . . . is looking at models where local store owners could offer incentives for users who "tweet" or "check-in" each time they frequent a location. Some advertisers already offer consumers rewards for "tweeting" when they use a product or service certain companies want to market. Crowley expects this type of practice to increase.

Foursquare got its start with "game dynamics" but they are not enough to push the service mainstream. The possibility of becoming the mayor of some local business is not interesting to most people -- and not even possible for ordinary people. Getting a deal or reward is much more interesting however. Such incentives already exist on Foursquare and some of its rival sites. 

Foursquare offers both the potential to be a new customer acquisition platform and a loyalty tool for businesses. For example I was in a bar in Dallas and was told that one could get "free chips and salsa for checking in." We did so and viola . . . lots of unwanted carbs came to the table. But I was already there.

The key is to both get new customers in the door (nearby deals does this to some degree) and reward customers for their patronage. 

The mayor concept does this but there can be only one. Broadening the mayor into a "city council" of sorts -- to a group of people -- will be more effective to reward and encourage loyalty. In other words, anyone who checks in X times, gets Y reward.

Regardless the model needs to evolve if it's going to move beyond the minority of mobile users it current attracts.