Sep 10, 2010
Three Best Ways to Use Location-Based Social MediaBy Riva RichmondOnline.WSJ.com

Restaurants, retailers and other small businesses with storefronts are embracing location-based social networks – think Foursquare or Facebook Inc.’s Places – to woo customers and keep them coming back.

The services allow smartphone-toting customers to “check in” to a business or address, and then instantly share that information with friends or connections. Other fast-growing pioneers in the field include Brightkite Inc., Gowalla Inc. and online-review heavyweight Yelp Inc.

Marketing experts say the services offer inexpensive, easy and effective ways for a small business to get its name out and engage customers (see related article, “Getting Customers to ‘Check In’ With Foursquare”). Foursquare and Yelp currently offer the most developed tools for small companies that want to run promotions, though other services are developing similar ones.

If you want to try a location-based service, it’s easy to get started. First, find out whether your business is already listed in services popular in your area. If so, claim ownership and make sure the listed information is complete and correct. If not, add the listing yourself.

The next more time-intensive step is to prepare a plan for using the service—and remember to keep it fun. On social media, the hard sell can turn people off, while irreverent and playful approaches can be wildly successful. Consider how to reinforce your effort, such as with signs reminding customers to “check in,” plugs in newsletters, and posts to Facebook or Twitter.

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