Do Location-Based Social Networks Work for Your Company?

Should retailers check out location-based social networks and let their customers check in to their stores? An AdAge.com post on Forrester Research’s recently released study advises companies to take a second look as to whether LBSNs are right to include in their current marketing mix.

The study reports that only four percent of U.S. online adults use location-based mobile apps such as Foursquare, Gowalla and Loopt. Only one percent update these services more than once a week. Even more, a good majority of respondents””84 percent””claimed they were unfamiliar with the apps, a number to surely make companies rethink how necessary it is to start a marketing campaign using LBSNs.

Those numbers may seem like LBSNs aren’t a great investment at this time, but the report calls for another look. Among location-based service users, almost 80 percent of them are male and about 70 percent of them have a college degree and are between the ages of 19 and 35. Even more importantly, Forrester discovered these users are highly influential. They are far more likely to research products and read customer reviews and frequently have family and friends coming to them for advice before purchasing a product. In this sense, companies in the gaming, electronics and sportswear industry that target their marketing plan to men may want to include an early adoption of LBSNs.

Still, plenty of companies have launched marketing plans with location-based apps that aren’t just for the guys, including PepsiCo and Starbucks. When deciding whether LBSNs are right for you brand, consider your demographic and marketing plan’s goals. Weigh whether you want to establish yourself early in the location-based marketing playing field or whether you’d rather sit in the bullpen and wait until the user numbers grow to give it a try. Like every other marketing plan for a retailer, whether it be holding a sweepstakes, advertising or social networking, location-based mobile apps can be just another tool in a well-stocked toolbox.