Case Study 3: Starbucks X Foursquare

In the 4th quarter of 2010, Nielsen reported that there are twenty eight percent of smart phone users in the U.S. mobile market. Of the different categories of applications, location based apps saw a rise in 2010 (tripling users from 12.3 million in 2009 to 33.2 million in 2010) with men as the predominant users. Marketers are noticing the potential for growth on this platform and are utilizing apps like Foursquare, Gowalla, SCVNGR to integrate in their mobile strategy.

Starbucks jumped on the geo based app train, using it twice in the last year. In the past the brand teamed up with Foursquare to award their most loyal customers. Last summer, brand loyal consumers, affectionately called mayors on Foursquare (people with the most check-ins) had the opportunity to unlock the Mayor Offer which offered money saving perks, like $1 off frappacinos.

Earlier this year Starbucks launched the celebration of it’s 40th anniversary by rolling out new products, a new in store look, and mobile strategy to reward consumers. Starbucks partnered with Foursquare again to extend brand promotions on the mobile platform. Users had the chance to win a $40 gift card if they unlocked the “Tribute Badge.”  There were 500 gift cards available nationwide up for grabs.  According to Technorati blogger, Steve Holt the brand got it wrong. He checked in but did not get the Tribute Badge. Curious to know if any other customers received the badge at his location, he asked the barista. He was met with a blank stare. None of Starbucks’ employees, or their brand ambassadors as they are known on the corporate level, did not know about the Foursquare promotion. Holt felt like this made their social media initiative look lame

The main target for this campaign are brand loyal customers. Terry Davenport, svp of marketing built the mobile strategy with these tech savvy, brand loyals in mind. He comments on the brand’s position in the digital and social platforms:
 

We’ve become a leader in social media and in the digital space, and with our Starbucks Rewards program we continue to grow in how we engage with customers. We have a million registered cardholders. So we have an ongoing conversation with consumers in social media and the digital space and with our cardholders.

 
The brand’s efforts in the mobile and digital realm have not gone un noted. In 2010 Starbucks won the Mobile Marketer of the year award.

Sources:
http://technorati.com/technology/article/a-social-media-house-of-cards/
http://mashable.com/2011/03/10/starbucks-foursquare/
http://blog.fahlgrenadvertising.com/2011/02/the-rise-of-location-based-applications/