Socialisation – Loyalty Cards and Gamification

Ultimately if you want people to use your loyalty card, visit and spend lots of money enjoying your service, products and services, wouldn’t you rather they bring their friends and family, or encourage them to come and join them. There are gender differences here of course. Shopping for women is often a social activity, something to be enjoyed with friends and is an outing in itself. For guys that might be the case for specific things like food and beverage, electronics and sporting gear (I am generalising and there are of course exceptions:) but in general terms a fun group outing is more likely to be going to a bar, a sporting match etc. Of course hospitality, entertainment, attractions etc are all most enjoyed if done with friends.

Foursquare in its points structure will give you more points if you log into a location at the same time as your buddies. Tap City uses Foursquare Points of Interest and has a game element where you can take ownership of a location by attacking it and getting your buddies to join you in the attack, turning it into a real game, but one that requires that you do check in to places to complete certain activities.

FREE App Rugby2GO for Android and iPhone

Loyalty programs for single venues or large programs with many venues are all there to generate business for your destination premises. This opens up great opportunities for incentives. In many cases points and recognition are enough, but why not encourage people to not only participate but also to get their friends to sign up. For example, lets say we had a loyalty card for restaurants and entertainment. You could have a deal where if you bring a friend to a cafe, you get 2 points, or maybe a free muffin, but if your friend becomes a member of the loyalty program and joins you there, you get more. Its Rugby time in New Zealand with loads of tourists going to Fanzones and enjoying the restaurants, bars, concerts and shows that go with the World Cup. A lot of people have Smartphones and are enjoying FREE iPhone and Android applications like Rugby2GO which has all the Real New Zealand Festival locations on it complete with directions from wherever you happen to be.

These apps are great and are a perfect stepping point to creating social engagement. If they allow you to upload all of your friends from your various social networks in the way applications like Foursquare, Instagram, Layar, and countless others do, then you are already crowdsourcing for free. All you need to do now as an application host is encourage them not only to get their friends to your location using the gamification we have talked about in our other recent blogs, and then also get them to invite them to install the app and join, perhaps using a promo code that recognises that your friends have joined them and identified them as friends, which also of course helps with your profiling.

South Africa v Namibia

Profiling people into groups with similar interests is of course something that Google has introduced with its Google+ circles and we are starting to see this in applications. So if you own a bar or number of bars, are showing the Rugby on your big screens, wouldn’t you like to be able to encourage your loyalty program members to not only invite their friends, but have them sign up to the program, reward them for doing so, then give them a great time so they want to come back, with their friends. This is known as crowd sourcing and also plays a part in viral marketing.

As a footnote on viral marketing, a reminder that you do not do viral marketing, your customers, friends and program members do that. All you can do is facilitate it. Create an environment they want to be at and share and they will do it for you. Of course you have to deliver on your promise and make sure they really do enjoy themselves. There is so much more you can do once you get started and of course we are full of great ideas and desire to help you make it work for your loyalty program. Why not Contact Us and have a chat about it?

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Adding Game Mechanics and Location To Loyalty Cards

Following on from my last blog Adding Location to Loyalty Cards, an area that I feel is really important is game mechanics. One of the problems with loyalty cards is that they are inherently boring and there are lots of them. We live in a world of constant distraction and we want instant gratification. However that gratification doesn’t have to be a free air ticket or turbo food processor with Ginzu knives. It can be as simple as points or recognition and applications today need to evolve as the public become more tech savvy on their mobiles.

What is game mechanics and how is it relevant? Playing games is part of who we human animals are. Games are a natural part of entertainment and education, whether it is a child doing its first jigsaw puzzle, or the All Blacks heading into a rugby match at that international world competition for a cup. Yes, ultimately no matter how passionate we are about success, Graham Henry and the NZRFU themselves said “It’s just a game.”

Games are immensely popular and computer and mobile  offers massive revenue potential. Gartner predicts that the global video game industry on its own will generate revenues of over US$112 billion by 2015. That doesn’t even take into consideration mobile. Application developers have been all over Facebook, now on Google+ and on devices such as iPhone, iPad and Android and now developers of smart location based games and marketing applications are heading the same way.

Developers are looking to use our interest and passion for playing games to influence the behaviour of consumers and it is working. One obvious area is in the retail, travel, tourism, attraction, hospitality and entertainment industries. Of course as I have outlined in many recent blogs, loyalty is a key aspect that all of these industries are looking for, or in other words, profitable repeat business.

So what aspects should a loyalty application include. A major one is achievements. I’ve talked about reward and that rewards don’t have to be tangible items. A reward can be points such as the points used by Foursquare when you check into a location. They also have badges and mayorships which are either the reward itself or their may be special deals or offers made to those people who come in regularly. The new Tap City game allows you to earn virtual dollars for checking in. One of the great things about group loyalty operations is the ability to cross market, for example using a passport concept where the more locations you check in to, the more rewards you get.

The appointment dynamic is extremely powerful. This is where you want people to do something at either a predetermined time or an ad hoc time. For example a restaurant that is always quiet between 3PM and 5PM on a particular day of the week might offer incentives within the application to get more business at that time of day. The concept I like the most, is pushing deals when you have inventory you want to use in a hurry. An example might be the special of the day in a restaurant where you haven’t sold as much as you catered for. The classic story I often use of a jet boat that is going out in 20 minutes with 5 empty seats. This is a perfect opportunity to push a deal to people who are close by and have opted in to be offered deals. The cost differential between having 4 or 9 passengers is negligible but the fun and entertainment factor of 9 people screaming as the boat does a 360 degree spin is significantly greater for all, including the 4 who paid full price. There is also a potential dynamic of more people seeing them having fun and therefore wanting to have a go themselves. The same could apply to any attraction, like the luges in Auckland and Queenstown.

Queenstown Luge

I can come up with a hundred concepts for different types of locations for cafe’s, restaurants, attractions, theatres, travel, accommodation, entertainment, retail, sport, tourism and so can you.

I will continue this blog next week with more thoughts on game mechanics or gamification that you might like to consider in your location based application. Remember, GeoSmart has all the data and tools you ned to make these ideas possible and whilst we don’t develop these sorts of applications ourselves, we have many partners who are keen to assist you if you want to take advantage of the opportunities now possible because of the large number of people using location aware mobiles. The question is how much extra business would you like?

Maybe you would like to join the discussion and leave a comment of your own to add to the mix?

GPS Car Navigation for Rugby Tourists to New Zealand with Global iPhone and iPad First

There’s a world championship event going on in New Zealand right now with rugby teams competing for a major cup. Many of the tourists who have arrived in New Zealand or are coming over for the rugby matches have iPhones and or iPads. They may be staying in Auckland or the region the national team they are supporting is based and don’t want to buy a complete car navigation device or a map set for the whole country when they are only staying for days or weeks.

The thing with the iPhone or iPad is that it is one of those ubiquitous devices that you keep on your person and navigation isn’t necessarily just about being a driver. It might be about being confident that the way the taxi is taking you is the quickest, or how do I get to the Fan Zone or Rugby Stadium or perhaps one of the REAL NZ Festival events.

MetroView Systems Pty Limited from Australia has come up with an excellent solution using GeoSmart car navigation maps and Points of Interest data, called MetroView NZ City. Because they are a local (Australasian) company, they are nimble and were able to come up with a product well suited for the rugby tourist, or in fact any tourist visiting New Zealand. Of course there are many Kiwis who don’t need all of New Zealand either, but a real key opportunity is that if you are only coming over for days or weeks. NZ$9.95 for true GPS car navigation on a device you already own is great value. That’s less than the price of 3 cups of coffee!

The application, which you can buy from the Apple Appstore has all the Points of Interest a rugby fan is looking for, but lots of great features around the iPhone and iPad as well. For example you can listen to and control your music and podcasts right from within the application using the iPad/iPhone button. If you have appointments (with an address)  in your mobile’s calendar, you can navigate directly to them, the same applies to your contacts list. Your music will automatically mute if there is a navigation instruction.

It is likely that the concept of buying maps for a single city will become more common in other countries but you saw it here first in New Zealand with GeoSmart data and MetroView software. Of course it isn’t just about the rugby, it is full car navigation with the features you are used to using. If you are planning a visit to New Zealand and want to find your way around on your iPhone or iPad, check out this product. I think you’ll find it very useful.

And all the best to your team, I hope they do really well, maybe even second if you’re not supporting the All Blacks;p

Metroview NZ City

Location and Shopping – Tomorrow Becomes Today

This morning I was watching a podcast on Unterther.TV which was an interview with Ken Harlan of MobileFuse, a Mobile advertising network. Their core business is publishing ads on mobile applications and web pages, but the discussion that got my interest was about people using their own Smartphone devices to do their shopping. This piqued my interest because one of the areas of shopping in the future is about navigating the grocery store and shopping interests.

GeoSmart is often found at the leading edge of location based technology, working with partners to come up with new applications and helping build the future that one day we will take for granted.

Sky and Sainsbury’s Supermarkets have collaborated to put iPad mounts with chargers in supermarket trolleys. The story suggests you might like to watch sport news and other entertainment.

The idea sort of appeals to me, but I can hear my wife saying “Don’t You Dare!”

But there are more powerful opportunities and I’m sure where Sainsbury’s really want to head with a company like MobileFuse would go something like this:

1. A Sainsbury App that gives you access to their product list including using your Smartphone scanner as you consume product at home to generate your shopping list. When you are ready to go shopping, the app would navigate you to the nearest store to your current location or a selected location such as your home or other destination, so your frozen goods stay cold.

2. Having checked in, you could be notified of any friends or family that are also in the store, or in the neighbourhood, or not:)

3. The App gets to know the sort of things you like to buy and shows you ads of similar products that may be of interest. This could include showing you videos about the product as you are walking around the store, it might even share recipes for you.

4.  Where I get excited is that it could show you where to find all the products you want, in effect order the shopping list so that it lets you know which product to get next as you go down the aisle so you don’t miss anything. In a chain, location based mapping and indoor navigation information could be uploaded for any store in the country, so that anywhere you go, you don’t need to know the layout.

5. This brings in loyalty programs that recognise you and offers you deals based on products that meet your profile and would be of interest to you.

6. You scan your products into the basket in the same way as they have done in stores like Albert Hein in the Netherlands, but the difference is that you do it on your own device and probably also have contact-less payment at the check out.

This may sound futuristic but self scanning was a struggle to introduce not that long ago. I think in a few years time you might find yourself doing it. Hopefully we will have assisted in this.

Consumers are Checking In to Retail Stores

In my previous blog I pointed out that that retailers were not adopting strategies for check in location based marketing. In the blog prior to that I quoted Comstat research that shows that in the first 3 months of this year 16.7 million people check into locations using Foursquare and similar applications, representing 7.1% of the total mobile population. I don’t know what the statistics are for New Zealand, but I suspect the numbers are somewhere between 5 and 7% of the NZ mobile user population.

Comstat also came up with some interesting statistics about the demographics of those users.

Firstly a lot of people think this is technology for men, that they are the geeks, but of course women love to shop, they are social shoppers and as the graph shows, there are in fact more women than men checking in!

The predominant age group should be no surprise, we would expect 18-44 year olds to be the most tech savvy and of course having disposable income for Smartphones which are the predominant mobile used for check ins. Again from Comstat for the first 3 months of this year in the USA Android pipped Apple at 36.6% to 33.7$ of devices used for checking in.

The largest group of users were in full time employment 46.6% and the second largest at 23.3% were full time students.

Just as a footnote to my blog on Group Deals and Bricks and Mortar Business there was an interesting story in eMarketer a couple of days ago. The story contained statistics that from research by Cooper Murphy Copywriters in July this year, 82% of Groupon users expressed dissatisfaction with the level of repeat business they generated from their campaigns and 49% would not use them again. This is interesting when many companies use daily deal type promotions to introduce new customers to their stores.

Of course you know where I am going with this series and that is that Location or Proximity Based Marketing offers far more compelling tools for retailers and other destination businesses to entice people into their premises. Obviously a fundamental component of that is not just how to get them to come to you, but how to get them there when you want them and to have them purchase or consume products or services that achieve your goals. For a retailer that might be those same products you were quitting on a daily deal, but like the Auckland superette owner who has been selling milk at 10 cents below cost as a loss leader, part of the strategy behind that is the opportunity to merchandise other products those same people will buy with a healthy profit margin. If you have an aged stock problem, location based marketing can get people into your store and while they enjoy the low price of your distressed inventory, put something at eye level in from of them that increases the profit of your sale. Cherry pickers do not make you profit.

Likewise if you have a cafe or restaurant, don’t just offer a free coffee with $5 worth of food. Offer it only at times when your business is empty and not to the people who were coming in anyway, they are dealt with using your normal loyalty program. Of course loyalty marketing is also very important and fits into location, but you’re going to have to come back to a future blog for that.

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Retailers are not flocking to take advantage of free check in marketing services

I did some research looking for New Zealand business success stories with check in marketing. I really struggled to find any. I went and visited a number of businesses in retail and hospitality and most of them didn’t know what foursquare was. One gentleman in a cafe told me he knew about it, but was too busy to learn how to do it. I pointed out that it was really easy, but he said he really didn’t have time and then sat down to have a coffee with one of his customers. I understand on further research that this is how he keeps a loyal clientele which is great, but he could always find a student or someone else to do it for him.

I spoke to a number of people in retail that gave me a similar story. It seems, as is often the case that most managers are too busy working on their business to work in it. This is a trap in my humble opinion. It’s common knowledge that businesses like cafe’s and restaurants to name a couple, change hands about every 18 months, a classic bell curve that starts with ambitions and energy, hard work, great service and develops cash flow. Then they get into a pattern or flow of how they do business, stop innovating, perhaps stop having fun and start telling themselves how hard business is. When they started fresh, people enjoyed the new business, new products and faces and the passion flowing from the owner and staff.

The thing is, we have an amazing opportunity to capitalise on location here. Remember the old rule of successful retail “Location, Location, Location”? Well it isn’t enough to stay fresh these days. As consumers we are spoiled for choices and sometimes we need a push to either stay loyal, or to try something new. Location Based Marketing is as simple as going to foursquare and claiming your business. To be honest, claiming your business can be a little difficult in New Zealand from a validation perspective if you are in a non residential street (where NZ Post do not deliver mail) and I have tried to contact them about this, but you should persist.

The great thing with foursquare for now is that they provide you with lots of very easy ways to set up promotion. You really don’t even have to be marketing savvy, it’s all laid out for you. Go and have a look and check  out the Manager Tools. It is so easy. If you need more help, follow this blog and we will explain how to do it.

People are checking into your store and stores near you all the time, why not give them a reason to come into yours, unless you have more customers than you can deal with. The numbers of people using check in services is growing greatly.

Have a look at the bell curve above and imagine this is your business. How long have you been in business? Have a look at your financials, now see if you can plot them on the curve. Is business growing? Are you on the rise? Have you peaked, would you like to keep the rise going? If you are reading this, maybe you have made some time to work on your business, which is great. Know someone in business who could use a little help? Tell them about this blog. There is more information coming on how to do these things.

If you are already using check in services for your business, we would love you to leave a comment. If you are part of a chain or collaborative group and are not currently doing anything in this area, or and agency wanting ideas for your client, GeoSmart would love to help point you in the right direction. We don’t create loyalty applications, but we have business partners and clients who do. We also welcome questions.

I’ll leave you with a link to an article on BusinessDay News which suggests that Location Based Marketing could be worth US$6.2 Billion within a few years. Maybe there is something to it? Would you like a slice?

Check Ins

We were at the Auckland ICT meeting a couple of night’s ago and it was interesting to corroborate our experience in the field with associates that there is both a chasm between people in the ICT industry and even their own friends and family in retail and other bricks and mortar industry when it comes to use of social media and proximity based marketing.

A couple of us presented at the Mobile Marketing Forum last month and felt that we were preaching to the converted and disappointed that only 4 bricks and mortar companies attended the conference when they were potentially the ones with the most to gain from being there. Generally what we found was that businesses either didn’t have a clue what checking in means, or if they did, don’t make the time to understand and utilise what could be a much better tool for them than dumping stock on daily deal type sites.

So here is a tiny bit of Check In 101:

Fundamentally the concept of checking in is to use a mobile application on a smart phone that is location aware, such as Foursquare, to register that the user is at a particular location such as a landmark or a business / shop. The location is verified using GPS or GPS assisted technology in the mobile. There are gaming elements such as badges or points and often tangible rewards such as discounts. People that visit a particular location enough times gain the title of Mayor of that location.

What is interesting and most retail business operators aren’t aware of is that this takes place, whether or not they are personally involved, which means people are entering their businesses and creating marketing opportunities, but are not being engaged in this medium. Most applications allow people to leave comments or tips, make ‘friends’ who are also allowed to see their location and make recommendations which could be positive, but could also be very negative. This means that even if the proprietor can’t make time to use these tools to engage and attract business, they may be losing business without knowing it as well. A simple comment such as “The toilets are clean here:(” or “The line was so long, I went next door” could cost not only immediate business, but steer people away long into the future.

The applications typically have interfaces to social media applications such as Twitter and Facebook, so the comments, recommendations and otherwise are creating a digital footprint that can be difficult if not impossible to remove.

Recent statistics from Comscore this year suggest that around 16.7 million individual people in the USA checked in to locations using Foursquare and similar applications over the first 3 months. This represents around 7% of the total mobile population. Recent statistics in June 2011 suggest that the UK and Western Europe currently sits at around 5%. That is a lot of people. People just like them may be in the area and walking right past your business.

Crazy About Rugby

When Tango Communications and Air New Zealand came to us saying they were going to run another cool promotional campaign, we were delighted to have the opportunity to participate. Together with a number of other sponsors, Air New Zealand have put together a road trip in specially detailed Britz campervans, driven by Air NZ staff who won the opportunity to have an exciting road trip from Christchurch to Dunedin as outlined in this story.

The 10 campervans left Kings College late yesterday morning after a photo opportunity with Prime Minister John Key and are now on their way south.

The campervans all have GPS tracking in them and using GeoSmart Maps technology members of the public can view the current location of the vehicles in real time.

You can also view the route they took and read their journals, which are uploaded by mobile along the way.

Of course we are also keeping them up to date with AA Traffic Alerts to their mobiles, but fortunately so far the only possible problem has been a slip on the Desert Rd in the opposite direction to their journey.

The Air New Zealand Campervans Crazy About Rugby Tour is a great example of using location based services in a marketing campaign. We look forward to following their journey and invite agencies and marketers to talk to us about how they can also use our mapping tools and technologies in their campaigns.

Crossing the Chasm with Mobile Marketing

Location is everywhere. A large number of people now use mobile phones which are location aware through a number of technologies, most well known are GPS and GPS Assist. Some location based technologies such as car navigation are now well accepted, so the market has a general understanding of the concepts.
There is a chasm between people who use this technology regularly because they are in key industries where the applications have been adopted as a matter of course such as people in ICT and Marketing. Many bricks and mortar businesses such as retail, hospitality and tourism are only barely aware that these technologies exist.
Effective use of location or proximity based marketing solutions can have a significant impact on the profitability of many bricks and mortar companies who not only have to compete with each other, but also with Internet based retailers and wholesalers.
There are many existing applications such as Foursquare, Facebook Places, Gowalla and more which can be used by these businesses, however most business managers are unaware of the technologies, intimidated by them and to busy working in their businesses instead of on them. This presents significant opportunities for developers and the businesses themselves to take an early adopter advantage. It also displays a need for market education as to the technology and how to use it in each unique business. GeoSmart of course has web services and API’s that developers can use to create their own apps, particularly in New Zealand and Australia.

I will be exploring these issues over the coming weeks on this blog. Please bookmark or use the RSS feed if this is of interest to you.

How to Get Listed on New Zealand Car Navigation Systems

I noticed that over the weekend someone had located our blog by searching on Google with the query “How to get listed on Car navigation systems”. I’m glad you asked and equally glad you found us because the answer if very easy.

GeoSmart provides the mapping information and Points of Interest (places to go) for the major car navigation brands in New Zealand including Navman, TomTom, Garmin Asus, Metroview and more. In addition to this, we also provide data for lots of other services including cartography and web mapping. The most popular web site we provide data for is AA Maps, which has huge traffic both domestic and international due to the affiliation of the NZ Automobile Association with other motoring associations around the world, so many tourist coming to NZ plan their NZ travel on that site. There are many more of course and some of these are showcased on our home page.

We are also finding many new clients in the mobile space, developing applications for iPhone and Android. They also use Points of Interest, so if you list with us you are very likely, if relevant to find your details on those applications as well, again at no charge to you.

So lets keep this simple. All you need to do is go to either the GeoSmart home page and click on the link:

Or go to the AA Maps home page and click on the icon that looks like this:

Simply follow the instructions that follow, which will allow you to quickly and easily add your business to our database for free.

You will have the ability to accurately identify the location of your business and chose from a selection of categories that represent your business, which is frequently multiple categories. For example a restaurant may also be a cafe and a take away. We will then validate your listing to ensure that you are authorised to make the entry on our database. Your data will then quickly be added to our data which is then updated by our clients and partners including the major car nav brands.

You will also be given the option of a free dynamic map with pan and zoom tools that you can post on your website for free. If people want driving directions to your location they can enter their starting address and be guided via AA Maps with full printable turn by turn directions and maps and even be able to check the real time traffic conditions before they go. All we ask in return is that you log onto your page and ensure your data is up to date at least once a year.

What if you are a chain? No problem, as long as you are authorised to represent your business, you can add as many of your business locations as you wish. Hopefully as a chain, we already have your data, but you may have new branches that we haven’t been told about, or some may have moved location, so please check on the AA Maps website to confirm we have all your current info.

Now that you will be listed on car navigation and in other applications, you can let people know in person, on your website, newsletters and other material, how they can find you. We look forward to helping send business your way.