How location-based Four Square can work for fashion retailers

Four Square is the latest social media buzz that has numerous retailers jumping in on the action. This new location-based social network allows users to “check -in” their favorite places in the city and letting their friends know where they are. The main goal is to let people explore their cities, get tips from friends and strangers about cool places they’ve been to. What’s unique about Four Square is letting people earn badges, an icon that appears on a user’s profile upon completing certain tasks (i.e.: checking into one place 10 times will earn you a 10 trophy badge). Participating businesses can also created their own badge and let their loyal customers have some great deals or prizes if they check-in on a regular basis.

What I find great for fashion retailers is having another effective marketing tool to give a reason for customers to come back. By adding this fun gaming element and by rewarding loyal customers with prizes, it’s a near win-win situation. It’s like the frequent flyer programs, only much more personal. I frequently buy at Jacob for some practical pieces and if I could get a badge, I could be eligible for a discount after say, 10 check-ins (or purchases), I think that would definitely keep me as a customer.

A lot of major partners have already jumped on board including The Wall Street Journal and The New Yorker. The sole big fashion brand giant that has a venue page on Four Square is Louis Vuitton in June 2010. They’re currently in a partnership with London, as part of a promotion of their flagship store in London on Bond Street. As a reward, those who check in regularly at the Louis Vuitton stores can earn a special Louis Vuitton badge and be part of “upcoming surprises” the company will have for its users. Already possessing over 15,000 users on a relatively new social network, LV could be onto something.

By micro-managing these mini events that allow users to participate in their own cities, fashion brands can exercise and measure the power of their brands. According to Mashable, Jimmy Choo and Marc Jacobs have already released campaigns to lure users to follow them. Four randomly chosen lucky winners who regularly checked-in at Marc by Marc Jacob retail stores were given four tickets to this Marc Jacob show in New York last season. Jimmy Choo’s campaign involved participants to arrive at a specific store before a pair of trainers would leave and they would win a pair of shoes of their choice and size.

There are some privacy issues, especially for women who regularly check-in at different venues, where potential stalkers can track people online. So always use these new social networks with caution.

All in all, location-based social networking could prove to be an indispensable tool for fashion retailers worldwide.