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

How to integrate web benefits for brick and mortar?

ScreenHunter_01 Dec. 15 12.04

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)

foursquare-square-complementary-strengths-venn-diagram1

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
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  • I'm still skeptical that brick-and-mortar businesses are capable (yet) of integrating into the fancy, mobile, changing world of social media. Most of them still have crappy web pages.

    But I agree that the company that can make even a small dent will be extremely valuable and have significant first-mover advantage as those non-Internet businesses see the light.
  • The slow adoption is definitely an issue, but an issue worth working
    towards a solution.
  • Nate
    Hey Ryan, I've enjoyed how often you've been covering the convergence of brick and mortar and the social web and you really are making some great observations. It sounds like your having a blast working with foursquare and exploring this newish domain. For me, it so interesting to see the social web, tech, and gaming integrating directly into a physical world transaction, and I think it really should change how retail establishments hire and train managers. Your doing good work covering this area, keep owning it. These transactions will become increasingly confusing in the next couple years and your expertise will be really valuable.
  • Nate, thanks buddy that means a lot. It's a very fascinating space that
    isn't going anywhere for quite sometime.
    What drives your interest in it?
  • Nate
    My interest is mainly just driven by curiosity. I'm unemployed, so I have too much time to think.

    I want to add that customers used to want to interact with business on a formal basis but now they want to identify with them - and thats where this social web (and 4sq. thing) helps. Managers need to embrace their role change from backstage operator to transparent engaging friend, and creating user experiences that customers want to identify with. Game play, technology, and social media are the tools some companies are using to create this engaging environment. Its really hard to see local business doing a piss-poor job improving user experiences here in south bend, IN. I really want to buy local, but they just aren't creating the good feelings some online retailers are.
  • Help me answer this question, how as customers can we help retailers and
    other businesses improve?
  • Nate
    Thats hard to do. We're rightfully lazy, no one wants to have to "work" to appreciate a brand. You can offer feedback and hope they listen...but they often don't - and the feedback loop is broken. Voting with my dollars is about the only power I feel like I exert on companies. So we follow that path, and poorly managed retailers go out of business. Is there another way that doesn't force me to work?
  • Take dollars out of the equation, how do we vote now with web services that
    are often free? Our eye balls is the easy answer but think there are other
    ways we vote that we don't even realize.
  • Nate
    Evangelism. Our friend's eye balls. Thats why creating an unbelievable user experience is key, we talk about it. We are so connected on the web, that 12 evangelist can breed 1200 new customers in minutes. If companies aren't monitoring their customers conversations and building metrics around them, they are screwed.
  • ding ding ding. social support is exactly it.
    I hope that the slower, non web, brick and mortars start to realize it soon
    or people are going to be ordering even their food and beer off the web soon
    (oh wait they already are).
  • Thinking a little more broadly around the title of your post, Wal-Mart is doing some interesting things to leverage their brick and mortar footprint and logistics expertise as they compete against Amazon, etc, to become a large e-retailer. See todays WSJ article: http://online.wsj.com/article/SB100014240527487...

    Further, I'm currently working with a client that has sought out the US Postal Service as a partner, primarily because of their retail footprint. Even in a digital world, there are significant advantages to having a brick and mortar infrastructure to leverage to deliver face to face customer service, "try it before you buy it" shopping experiences, or even just a reduction in shipping costs (I recently did this with an REI item).
  • I absolutely agree. For example, did you know that Zappos has their largest
    warehouse in the country next to the largest and most centralized FedEx
    facility in the world? It's in Louisville and they are literally across the
    street..."strategery".
  • Uh, that was weird - Facebook Connect did not actually identity me.

    @AllenPenn
  • This connection between Foursquare and Square doesn't really make sense with how Square is being marketed right now. It is an interesting idea but as I see square it is really for small vendors that want to accept credit cards. No brick and mortar store is going to be accepting credit card through their IPhone. Now if square plans to offer a dedicated device like current credit card scanners than this idea is very intriguing.
  • I understand how it might be difficult to see but in fact there are already
    brick and morter stores using Square exclusively.
  • Hutch Carpenter
    Hey Ryan -

    Glad you liked the Foursquare-Square Social CRM post. The companies that crack the small business offline-online puzzle are going to benefit hugely. And the small business payments/CRM world is ripe for disruption.

    BTW - very cool bio you've got there. Big company and foursquare at the same time.

    Hutch
  • @Hutch-
    It was an awesome post , very well thought out. Totally agree that there is
    enormous opportunity. I really like the Foursquare/Square combo burrito
    that's possible here.

    Dennis and Jack met yesterday (saw a Tweet), not sure what came of that
    convo but I'd love to know.

    Thanks re: bio. I work a lot :) Foursquare is just a project, I don't work
    for them now. Just a passionate user.
    -RG
  • That diagram from Hutch Carpenter is good stuff. Good post bud. I hope that venues are "getting" that they should be measuring visitor frequency and acting on it every way they can now that the technology is there.
  • Make sure to tell Hutch that, his is a really great post. More insightful
    that mine :)
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