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This is a guest post by Ellen Mitchell

Foursquare vs. Gowalla? Seems to be a constant debate over quality of service, better capabilities, and ease of use. All wonderful questions to be discussed somewhere else, because to me the question is not which, but really what? More specifically, what is the benefit for participating businesses?

As fun as it is to become the virtual mayor of my favorite place, it seems to me there has to be some benefit to the businesses or it’s just a game, not a social media tool. Yet it is described as a tool and that is what we are going to hash out here.

What these services give businesses is a highly effective tool that can capitalize on their consumer’s interests and use them to drive traffic to their establishment. It has the unique ability to market deals, specials, and events directly to the audience that will not only care, but ACT ON IT! Therein lays the key to these developing tools, the ability to spur an action. Pretty print ads and websites are nice but they don’t always effectively “get butts in seats.” I’m not saying those things aren’t needed because the test of time and many smart people have told us different. I’m just saying here is a new tool that really seems to reach people, because it is a game. Something we can have fun with!

Just as much fun as they provide for the consumer, they provide valid data for the businesses. Foursquare analytics allow businesses to see how many people are checking in, their gender, most popular time of day to check in, top visitors, and many more useful statistics. These can be used to keep track of retention rates, newcomers, and give businesses the opportunity to wow their consumers by actually communicating with them. All of these things make for a loyal customer base.

In a time when companies are still trying to understand how their social media efforts are turning impressions into actions, Foursquare and Gowalla seem to be bridging the gap.

Ellen Mitchell is a Communications Specialist for Vistra Communications here in Tampa, Florida and an avid social media follower. She seeks to learn how social media is changing communication as we know it and documents it through her blog www.ellenexploring.com

Further reading:

Foursquare Day – A Case Study In Awesomeness

FormSpring.me – A Game Changer In Social Networking

Social Networks Manager – A Future Position At Companies?

10 Reasons Businesses Should Participate On Social Networks

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