When geo-social games — those contests on mobile devices that let users check in and become “mayors” of their favorite places — first attracted notice, marketers were understandably cool. After all, a loyalty promotion that only hands out badges or a top prize to one player at a time is of limited value, worth perhaps a free order of fries or a coffee drink, but not much more.
But after years of playing for funsies, users are now starting to turn those check-ins into cash-ins. Geo-social game technology is maturing, and some marketers are feeling confident enough to offer substantial rewards not just for the top check-ins but for anyone who walks in, takes out a smartphone and raises a digital hand.
For example, 50 AT&T retail stores in four Midwestern states have been piloting a promotion with Boston-based SCVNGR that lets users come in and complete in-store challenges such as posting pictures to Facebook and scanning QR codes. Each behavior earns points, and AT&T is redeeming those points for some valuable rewards. For example, the early portion of the pilot, which launched in late August, held out a $50 rebate for Samsung's new Captivate phone to players who accrued 15 points and unlocked that reward.
Seth Priebatsch, founder and CEO of Boston-based SCVNGR, says emphasizing challenges rather than mere check-ins makes the platform more flexible and dynamic both for players and for marketers who might want to use it. Challenges also cut down on “fake-ins,” bogus check-ins from the curb.
And rewards engage consumers more than rebates handed out, Priebatsch says. “Coupons have no value beyond the economic impact. The consumer gets a dollar of happiness, but the business loses a dollar; it's a zero-sum game. But when you deliver an incentive through a reward won in a game, the emotional value is 5x or 10x.”
Tacos and Twofers In the same timeframe on the West Coast, Virgin America put geo-social mobile games to the test with a promotion for its new non-stop routes from San Francisco and Los Angeles to Mexico. For four midday hours on Aug. 27, the airline offered users of the Loopt Star iPhone app a chance to check in at one of four locations — airports in Los Angeles and San Francisco and at two taco trucks centrally parked in those cities — and claim two-for-one flights to Mexico, at fares starting at $129 per seat.
Virgin didn't have complete stats at press time, but said that the San Francisco truck location saw about 1,300 check-ins and that 80% of those received an e-mail with an access code for the offer. Officially, those users have 30 days to take up the offer and book flights. But according to Jill Fletcher, social media and communications manager for Virgin America, the company is already crediting the promotion with creating the fifth highest revenue day in its history.
“Food trucks are hip right now, and a geo-location app like Loopt Star was a fun way to emphasize a new physical presence,” Fletcher says. “The Virgin brand is known for doing slightly crazy, funny things, and we like to uphold that reputation and surprise and delight people when we can.”
TIP:
REWARDS ARE GREAT, BUT DON'T SKIMP ON THE PLAY VALUE IN LOCATION-BASED SOCIAL GAMES.
