Major brands including Marc Jacobs, Jimmy Choo, and Cynthia Rowley have all engaged their customers by utilizing location-based applications like Foursquare to build buzz around new merchandise.
Marc Jacobs first used the application to give shoppers badges when checking into one of his stores. Four of those users were then given tickets to his prestigious NY Fashion Week show. Marc Jacobs is also using social media to reach his customers by streaming his runway show online. The Fashion Week collaboration gave both Marc Jacobs and Foursquare “word of mouth marketing.”
Jimmy Choo launched a Catch-a-Choo campaign, giving the first customers to check in at certain locations in London a free pair of his new sneakers. Over 250 blogs covered the Catch-a-choo campaign and sneaker sales rose 33%. The campaign was also mentioned more than 4,000 times on Twitter.
Cynthia Rowley collaborated with Foursquare when she launched her new line of bridesmaid dresses on June 3rd. Users who checked in to her Bleecker St. location in NYC were awarded a $25 gift certificate and 15% off bridal goods at dessy.com. Similar events took place in her other store locations over the summer.
I think the biggest downfall for companies would be to start using location applications to promote a new line or event and fail to offer any future incentives after a successful launch. I would have to know for sure there is a chance of some reward or coupon in order for me to take out my phone and check in to a location. If consumers help companies successfully launch a line by taking the time to check in, they should be rewarded too.
Using location-based applications can be a great tool for retailers to enhance shopper experience, product referrals, and improve customer loyalty. The incentive of receiving discounts and rewards is a great push for consumers to get to the stores and start shopping!
