In our last post we introduced location-based services, like Foursquare, and the excitement this new technology holds for connecting with customers. When I open up one of these applications on my iPhone, inevitably someone asks, "How do they do that?" Here's how....

You need a smartphone, an iPhone, an Android or any phone with a range of applications you can download.

1. Start with a GPS. Just like the GPS device in your care, your smartphone has a Global Positioning Service (GPS) built in. GPS tracking with access to mobile web is what makes different user applications possible. Mobile search makes it possible to identify individuals, cities, neighborhoods and landmarks. That capability allows you to access information relative to where the GPS signal (and you) are originating. This is how you access information on local weather or movies, or your proximity to particular landmarks.
2. Connect to a network. Combine that capability with some type of 'push notification' (as in you click a key on your Smartphone to signal "I'm here at the mall, notice me") within some social network, and you can both be found and find out who else is in proximity. Not bad if you are at the playground with your child and want to 'check in', maybe set up serendipitous 'play date' with others in the vicinity, or if you are club hopping and want to see who else is nearby. Even better is you set up a social network where your business location is the first common connection for those on your network!

Aside: Just what do you call this thing? Like anything still coming of age, there are a variety of names you find used to describe the technology. Some of these terms include geo-mapping, geo-location, location bases services (LBS), location-based social networking (LBSN). I use location-based services (LBS) since marketing professionals and consumer psychology types are more focused on services that connect their business to customers than the social network experience.

3. Add historical tracking. Add historical tracking of this information and you can quickly determine who has been there most often. That is where businesses and data-driven marketers start to take notice: Who are my most frequent customers? Can I get closer to them? Analytics tools offer to answer questions such as

• How many unique visitors checked in at your location?
• How many total check ins (letting you know people are checking in more than once)?
• Who are the most frequent and most recent checkins (and how often)?
• What is the historical pattern of checking in? (which days spike, perhaps in relation to some other events or marketing initiatives)
• What time of day do visitors check in

These analytics may be the very stuff that converts a faddish new technology to a data-driven tool to support customer acquisition and retention strategies. Isn't that just what you have been wishing for?

"Smartphone adoption is early on the deployment stage, you counter. Only a small percentage of my customers a likely checking in today. Is it really growing?"

Growth - what really gets your attention. At least if you are in marketing and sales, this trend should get your attention. Imagine any business that

• Attracts 15,000 new users every day!
• Add in business partnerships with the New York Times and Wall Street Journal.
• A May 2010 post by Jennifer Van Grove, notes that Foursquare was nearing 1 million check-ins a day.
• Mashable, the online social media guide to blogs and posts on new technology, has given Foursquare its own tag (which is one of under 40 tags) for stories on the technology and its use.
• Location-based mobile phone services are expected to generate $12.7B by 2014.

What is driving such growth? Simply put, you want access to information at your fingertips. It may be the convenience of finding movies (Fandago), the nearest public restroom and knowing if it is clean(sit or squat), finding a taxi service to come find you (Rocket Taxi), or getting a discount on your Starbucks Frappacino (because you go there often enough and are willing to 'check in' on your mobile phone).

Having this type of information available whenever you want it is really cool. Knowing what your customers want to know, and what drives their behavior is also really cool if you are interested in attracting and retaining customers. Now the big questions become:

How do you get customers to continue to use the technology?

What's the next wave (and how do you get there ahead of your competition)?

What's 'the dark side' of this?

Check out the next post as we talk about the irresistible pull of location-based services and the future it may hold for your best customers.