carrots

Foursquare: Carrots Are the Killer App

By Mark Evans in Social Media 2 Comments Tags: , , ,

Last weekend, I went to the Old Spaghetti Factory in downtown Toronto for dinner. It’s a large family-oriented restaurant that’s been around forever. For the most part, little has changed at the Old Spaghetti Factory. The decor and menu are exactly as they were a decade ago, although the prices have obviously climbed.

There are some signs of change, mostly notably the large, flat-screen televisions in the bar and, if you look closely, the use of social media. I say “closely” because as you wait in the lobby for a table, there’s a small sign slapped on the host’s dais that suggests you check in on Foursquare to get a deal.

Not being a regular Foursquare user, the opportunity to get a deal was impossible to resist so I whipped out the iPhone and checked in. Unfortunately, the deal had either ended or it wasn’t part of the database so I never got the much-anticipated discount. (Note: It turned out the restaurant dumped Foursquare for Facebook. The head of marketing suggested Foursquare will disappear soon, although I don’t share his bearish view.)

I did, however, gain some valuable insight into Foursquare’s value proposition – at least the value it holds for me and likely many other people. It’s all about the discount or the coupon. If Foursquare has a “killer app”, it’s not the strange joy of becoming the mayor of someplace you patronage far too often, or the even more bizarre pride in earning badges, which reminds me of my days long ago as a Cub (aka mini-Boy Scout).

The “killer app” for Foursquare is the deal. Give me a good deal and I’ll use Foursquare, even if means having to check in (but don’t expect me to pepper my Twitter stream with updates on my whereabouts). In the world of social media and the increasing need for brands to provide something to get something, the “carrot” rules. Consumers want carrots so they will happily do things such as check in, “Like” or “follow” to get one.

Foursquare has the potential to be a carrot machine that brands could use to attract and reward consumers and, as important, differentiate themselves from the competition who may not be offering carrots on Foursquare or not as many carrots. If a brand offers lots of carrots, consumers will check in.

In my humble opinion, Foursquare should focus on carrots, not badges or mayors. Badges and mayors are fun and entertaining but they’re candy that comes and goes quickly. Carrots, meanwhile, have staying power because everyone likes a deal and we’re willing to make an effort to get one.

Social Media is All About Carrots

By Mark Evans in Social Media 2 Comments Tags: , , ,

There’s an awful lot of talk within social media about engagement – the idea that companies can create vibrant and active relationships with consumers.

This happens by having conversations with existing and potential consumers, and providing them with relevant and interesting content that encourages interaction.

And while content, in many ways, is still king, one thing that I have learned over the past few months is the important role played by carrots in getting consumers excited or interested in what a company is doing with social media.

In an ideal world, we would be talking about carrots – the crunchy, nutritional kind loved by rabbits – but in this case, I’m referring to the different incentives that companies must use to convince consumers to participate and participate in an online community beyond simply appealing to their interest in a product or service.

This is why things such as contests have become such an integral part of social media marketing. Offering consumers a “carrot” such as the opportunity to win a prize (and it doesn’t necessarily have to be anything significant), significantly increases the chances of them engaging with your company and brand. If companies can insert some creativity into the mix such as what Dunkin’ Donuts did with its create-the-next-donut contest, so much the better.

The focus on the “carrot” is no different than the off-line world in which incentives have always played a role in getting the attention of consumers. But the carrot’s role within the social media ecosystem has not attracted a lot of attention amid all the focus on the tools and how consumers are embracing them.

At the end of the day, carrots will become a significant of the social media marketing landscape as more companies get into social media. At some point, standing out from the crowd will be increasingly difficult so companies will need an edge to appeal to consumers. It could be terrific content but it could also be carrots.

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