The geo-location mobile platform that began it all is destined to grow beyond ‘startup’ status.
Foursquare struck a deal with American Express today wherein rewards and incentives will be further bolstered by the financial behemoth. Users can sync their Foursquare and Amex accounts to unlock exclusive deals and savings when they check-in to specified locations.
While Foursquare will not be profiting directly from the partnership, their brand-driven strategy does seem to set them apart from other location-based services, and this deal specifically indicates that Foursquare is ready for virtually any Fortune 500 company.
On the client-side, Foursquare’s growing user base is lucrative to say the least. Most clients (like Six Flags or Amex) seem to be most comfortable in launching a test campaign before going big. Edward P. Gilligan, Vice Chairman of American Express, told the New York Times that:
The national rollout came after a test run in March at SXSW… On average, those in the program spent 20 percent more than American Express cardholders who did not have access to the special deals. The Foursquare tie-up brought a higher response rate than anything else we’re doing.
The way Foursquare legitimizes itself today is not based only on hype. While they will not reveal how much of their users are actually active, infographics are being published regularly and the positive quantitative support is there for brands ready to embrace geo-targeted promotions and interested in targeting a younger, tech-savvy audience to get involved.
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