THE DREAM IN ACTION


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An entrepreneurship and adventure blog: THE DREAM IN ACTION (by Ryan Graves)

10.16

2009

If Foursquare had Sales Reps

foursquare_logo_girl

In a recent project, I’ve been trying to sign-up venues here in Chicago to be on Foursquare. It’s been a fun experiment in sales and a wake up call to the difficulties of door to door sales pitches. Below I’d like to share some of the findings of the experiment and some of the suggestions that I would make to the Foursquare founders (in the next post) all based on venue feedback. These changes may make those local business partnerships a bit easier and more valuable. Also, note that I am not really a Foursquare sales rep, they are a 3 person startup and they don’t have sales reps, but if they did, here’s what that person would learn from bars & restaurants…

Realizations

1) It’s tough to get in front of the person that makes the decisions – Over and over I would get deferred to a manager that wasn’t able to make a decision on any kind of promotion. I quickly learned that I need to get the right person before I give my schpeel otherwise the time was usually a bust. However, sometimes I found it really fun to just explain the idea of Foursquare to normal employees. In one situation I found that sharing the idea with an employee lead to a glowing review of the product to the manager, which eventually really helped in that important conversion conversation.

2) Brick and mortar is still confused about how the web will help them – With the blowing up of Twitter and Facebook, the offline crowd is becoming more open to the idea that a web based solution could help them. However, it’s still very new. Even though you and I are “savvy” it doesn’t mean that the value of the internet is understood by all. This will definitely take some hand holding. In order to reach the local business masses there would need to be a ridiculously large sales force, which is why most businesses won’t be able to make the economics work. There has to be a better way to reach these businesses than the tradition cold call method. (proposed solution in the next post)

3) You’ve got to relate the future with the past – These business owners don’t want to try the new things. That’s why they started restaurant/bar businesses and not web businesses, but that doesn’t stop their entrepreneurialism from thriving, they are looking for ways to beat the competition! If you are going to make a case to them, you’ve got to relate what your trying to do with something they already see the value in. Maybe for a restaurant it’s Yelp, or maybe for a bar it’s the economics of a Monday night drink special. Either way, connecting with something they already understand and buy into is mission critical.

During my experience in the shoes of a Foursquare sales rep there were many lessons learned, these are some of the main ones. I’ve really enjoyed this project for a few reasons. I believe in the product. I don’t understand how somebody could take a sales job when they don’t truly buy into the product, it would be a lie the entire time, nightmare. Also, I love convincing people of the webs value. I do think that so many people have not yet taking full advantage of the web and I will always promote it’s use where possible. Yes I’m a nerd. Lastly, I love talking to bar/restaurant people. Their businesses are very basic and they aim to serve. Similar to the game Foursquare, bars aim to help people have a good time, and I’m into that.

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  • Love this line in your post "If you are going to make a case to them, you’ve got to relate what your trying to do with something they already see the value in."
  • :)
  • I grew up in a family restaurant, and I struggle to get my parents up to speed with Yelp, Google Local and the web in general. You're absolutely right that you need to relate the use of technology to brick & mortar business owners with relevant terms and experience.

    Really, I think a key for foursquare to gain some momentum is to develop a viral loop for the business owners themselves. Sure, foursquare attracts users and keeps them invested with game play, but if the business owners are going to drive revenue, then they need to focus on that plan.

    It's a tricky scenario. On one hand, restaurants (for example) are competing with one another, but they also help each other out. So, developing an easy/natural way for restaurateurs to pass foursquare on to one another would be key. They'd also do well to lock up a contract with some chain of restaurants/cafes. And this is old fashioned, but going to a restaurant owners' convention or something would probably help too.

    My point is, they need to get a critical mass of businesses on here, and doing it one at a time is tough. We have run into the same thing with our web startup, dealing with college coaches, so we make an effort to partner with whole leagues and our viral loop leads to word of mouth customers for us.

    Finally, I'll make the comparison to Twitter. Once Twitter started getting celebs on board, it drew attention to and validated their service. foursquare has that with its users to an extent, but they'd do well to develop a partnership with Starbucks (or similar).

    Great project, Ryan. Your drive is admirable.
  • Thanks Reece. Much appreciated.

    Foursquare does have the upper hand in that they have the customers excited
    about going to venues, they're taking care of the "bring customers in" part.
    Like you said the next step is to make it appealing for venues to get
    involved.

    In my opinion that's just the small play here though. One venue will
    definitely find value from the service once Foursquare packages data
    appropriately but there are so many more things you can extract from this
    info. Look at SocialGreat.com, they are aggregating checkins from multiple
    location based service and creating really powerful information about how
    people are acting around a city.

    Last night I didn't go out and I checked socialgreat, it said that Chicago
    was dead (compared to normal Friday nights) and I felt pretty good about my
    decision to stay in and get work done. When I watch socialgreat all I can
    think about is watching an ant farm. Now because of foursquare and other
    similar services we can watch our cities the way we use to watch ants as
    kids. Remember how much we learned from ants?
  • Very interesting article. I've spoken and dealt with several start up organizations who have the "next great thing" for restaurant and small biz owners, but have no logical way to onboard those businesses without a massive sale force. The simple fact of the matter is that the small biz owner is quite literally bombarded by sales people and/or resellers of the next big thing on a daily basis. The first question by these start ups should be who is the end user? I, as a small biz owner, am more likely to listen to my customer than any one of the ten sales people that call or walk into my business every day. If these concepts focus on educating and inspiring the end user, the business is more interested in hearing the sales pitch and considering the value of the service.
  • Practical-
    We're on the same page, it will be tough, but the potential value prop is huge if the model is figured out correctly.
    I think Foursquare has an upper hand in that the game can determine the customer behavior. In other words if it's adventagous to help the small biz owner because of the games structure, then they will. Quite possibly the "missing link" has been found.
  • FourSquare is one of those services that you crave for since you don't have it (they're not yet in Nashville) but hope one day to get to know better. Great notes here Ryan not only for them (FourSquare) but for anyone looking for clues on "how to make it" out there. It's about showing business owners new tools that will help them pay the bills at the end of the month.

    And it's great to see that one of the startup owners (Tristan) is anxious to know how to make this service I'm still not able to use better. That way when it finally gets here it'll rock our world! Best of luck. --Paul
  • Paul-
    I appreciate the notes. Totally agree, gotta be in front of the customer to
    know how to provide value.
    Put in a request for Nashville here --> http://foursquare.com/cities

    Talk to you soon buddy.
  • awesome feedback. love it. shot you a note. feel free to give me a shout (tristan@foursquare.com). Would love to chat more about your experience with the venue owners. Can also chat with you about some cool things we're 'thinking' about here.
  • Tristan.

    I'll hit you up tonight.... yea I'm stay in.

    Cheers,
    Ryan
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