THE DREAM IN ACTION

I’ve been pondering, in great detail, the challenges of getting “old school” brick and mortar business to better understand, then implement the enormous value that certain web based tools could provide for them. My first observation is that it must happen in that order, understand, then implement. My second observation is that it must be in their terms and must align with their ‘current’ business goals (I’ll elaborate on that).

A friend who works at a major consulting firm asked me for tips on how to use Twitter for his firm. My advice was, “You’ve got to understand your business goals before you have a hope of using Twitter (all social media) correctly”, and the same goes for bars, restaurants, and retailers. Here is what I would be doing if I ran one of these types of businesses…

I’m going to play the role of bar owner for the example here, the same principles apply to all.

1. Identify the value for the “key players”

There are two key players in this game. First and foremost are my customers, without them I’m dead so there interests should come first. My goal is to drive them to my venue. Second, are the investors or owners of the establishment. If an action pleases one and pisses off the other it won’t fly. Mutual benefit is critical.

Customers

It turns out that my customers are becoming passionate about things I don’t even really understand. It’s not productive to bitch out it, it’s my job to learn and get on their level. People are playing web based games that can literally determine where they go next. Customers are following their friends, broadcasting their locations, following friends recommendations, tips, and reviews to make consumer decisions and I have to be paying attention.

Venues

Turns out this crazy new game allows me watch! I’m invited to this party…for once. And because it’s location based I can track their interaction with my bar. Details like who’s coming to me, how often, who they’re with, and what they’re saying about me are mine for the taking. Not only does it let me sit on the outside and observe, they let me engage and play the game, even better, they let me make up the rules! Parker Smith wrote on this blog, ‘r+d’:

Foursquare provides a dead simple and engaging platform through which any small businesses can establish a loyalty program.

Venues can offer specials and determine the incentive for game players (who by the way are our most passionate customers) to come back, and spread the word.

2. Measure the value

Now that my eyes have been opened to the world of technologies that can literally change the way I interact, monitor, and reward my awesome customers, why not make that physical interaction a bit easier? Introducing Square: Twitter inventor Jack Dorsey just launched a biz that is a new way of accepting payments that, oh by the way, allow you to track customer spending. Here’s how Foursquare and Square play well together… (diagram from Hutch Carpenter)

The social incentives remain on the Foursquare side, it’s fun, and people are rapidly spreading the word. Now, from a transactional standpoint, I want to see what kind of $cash$  this is bringing in and revolutionize my conversion and merchant process and significantly increase my visibility to all of it.

Now by using this tiny device that plugs into an iPhone (or another smart phone soon) and can accept credit card payments, I know who’s coming (from Foursquare & Square), I know who is with them (from Foursquare), and I know how much is being spent (from Square), and I know how often they come (from Foursquare & Square). The ultimate customer monitoring, visibility, and analysis has arrived. It’s just up to me to keep my eyes open, continue to learn and use the tools available to me.

Conclusion

I better understand my business goals of attracting and converting customers and I’m using the tool that they are having fun with to monitor and act on their behavior. That’s mutually beneficial. I’m not selling them anything they don’t want, I’m connecting on their level and learning more about them. I’ve taken the time first to understand why these tools will help my customer and me and I can easily implement it. Very simple, very engaging, very affective.

It’s almost as if Foursquare was meant “for Square”.

image via flickr