Yesterday I went to the Boston tastybytes discussion (hosted by Compete) on location-based services (LBS). The panel was a great collection of personalities featuring Mike Schneider (Allen & Gerritsen), Aaron Strout (WCG Group), Nataly Kogan (WHERE), Gary Leopold (ISM), and Agit Verghese (GoodEatsforMe). Mike and Aaron literally wrote the book on the topic.
One of the first take-aways from the panel was that relevance is crucial in an LBS app. Whether you’re checking-in or searching locally, LBS is going to be most beneficial to each side (brand/user) when the engagement yields something useful. It seems obvious, but before you embark on an LBS development don’t forget to ask “What’s the point?” Make sure there’s value on both sides.
Nataly highlighted the importance of user experience and I absolutely agree with her; a great promotion or special will only take you so far. Brand insistence is built on bonds and experiences. With LBS you can catalyze customer participation through challenges or activities or offer something special and tailored such as services, options and discovery based upon proximity and user info. If you’re able to combine LBS with user context, you can create a much more relevant proposition.
Another question to the panel was how to address nay-sayers, how do you respond to, “The numbers just aren’t there” or “Why should I bother”? Immediately, I’d refer back to the ability of LBS apps to better engage (e.g. gamification), because it leads to loyalty. A brand is more likely to capture market share with active, insistent customers. These people, like most LBS app users, are early adopters, influencers and recommenders – they blog, promote and talk about their discoveries; great assets to any growing business.
Beyond what was already mentioned, the panel dove a bit deeper into specials. Although this relates back to relevancy and context, it’s important to consider the purpose behind specials – whether their intent is acquisition or loyalty. One deal might get someone in the door, but rewarding for loyalty will keep them coming back. But beyond discounts, which have always existed, another concept I liked was the idea of special access. Maybe your loyalty to a restaurant or bar is rewarded with priority reservations, maybe in the apparel space it means access to a personal shopper — either way I think there are more creative incentives that have yet to be tapped.
Wrapping up, now is a great time to get involved with LBS. The space is evolving, changing and adapting. So long as your concept is relevant, benefits both sides and is executed through a meaningful/exciting user experience, brands or organizations should certainly experiment in this space while they can afford to. Ed Catmull of Pixar puts it best with regard to new endeavors, “Fail early, fail often and learn fast.”
