This thesis aims at critically analyzing Foursquare from a customer relationship
management (CRM) perspective. After elaborating on CRM and carefully
scrutinizing the mobile application and its functions, the author aims at investigating
how Foursquare can be used as a CRM tool throughout the customer relationship
life-cycle. Since large companies managing renowned brands usually
have more sophisticated tools to enforce their CRM strategy, this thesis is less
concerned with those large enterprises, but rather focuses on small, local businesses
that decide to enter the realm of customer relationship management.
Table of Contents
1 Introduction to the research question
2 Research targets, design and methods used
2.1 Literature review
2.2 Field study
2.3 Pilot project
2.4 Depth interviews
2.5 Online survey
3 Topic related background information
3.1 An introduction to CRM
3.1.1 Definition of CRM
3.1.2 Customer relationship life-cycle
3.1.3. Social CRM
3.2 Game changing technological developments
3.3 Location based services
3.4 An introduction to Foursquare
3.4.1 Functions of Foursquare from the point of view of users
3.4.2 Functions of Foursquare from the point of view of businesses
3.5 Comparison of check-in services used in Germany
3.6 An introduction to Couponing
3.6.1 Process of couponing
3.6.2 Design possibilities of coupons
3.6.3 Couponing throughout the customer relationship life-cycle
4 How to best exploit the potential of Foursquare throughout the customer relationship life-cycle
4.1 The potential of Foursquare in Germany
4.2 Design possibilities of Foursquare specials
4.3 Foursquare specials throughout the customer relationship life-cycle
4.4 Foursquare campaign promotion
4.5 Foursquare targets and related KPIs
5 Limitations of Foursquare and conclusion
6 Outlook
Research Objectives and Topics
This thesis aims to critically analyze the mobile application Foursquare from a Customer Relationship Management (CRM) perspective. The primary research question investigates how Foursquare can be effectively utilized as a CRM tool throughout the various stages of the customer relationship life-cycle, specifically focusing on its applicability for small, local businesses.
- Theoretical foundations of CRM, Social CRM, and the customer relationship life-cycle.
- Technical background on Location Based Services (LBS) and the mechanics of check-in services.
- Analysis of couponing strategies and their integration into customer relationship management.
- Empirical investigation of Foursquare's potential in the German market through a field study, pilot project, and online survey.
- Development of Key Performance Indicators (KPIs) to measure the success of Foursquare campaigns.
Excerpt from the Book
1 Introduction to the research question
It is 6:45 am. My favorite song cheerfully reminds me that it is time to get up. As I reach out to my smart phone to turn off the alarm my thumb intuitively hits the Facebook icon. While Facebook is still loading my friend’s latest status updates I open my email account as well as the weather forecast. I quickly realize that not a lot has happened on Facebook since last time I have checked – which was right before I went to bed. Now I get up. I leave the house an hour later. On my way to the bus stop I open Foursquare to check in to my favorite bakery. Fortunately I am the mayor of that bakery, meaning that I get a free cup of coffee with every bagel I buy. Once I arrive at the bus stop the display announces a five minute delay. While waiting I notice the billboard inviting me to scan a QR code to receive a 5 € off coupon for the restaurant chain I frequently visit. Great! I quickly push the link to my Twitter followers before I hop on the bus to go to work. My work place is located at the harbor front and it is a beautiful morning. I quickly open Instagram to take a picture of the breathtaking scenery, check in on Foursquare via Instagram and cross post the check-in together with the picture on my Facebook timeline. Two more days until I will become mayor of my work place! It is 08:30 and I am headed to my first meeting of the day. Smart phones are not allowed. I have to put it away.
The morning described above is only a fracture of the daily routine of a digital native. What becomes clear is that the Internet and its many applications, which have now found their way into our pockets, have changed people’s routines as well as their behavior. Smart phone users are connected to the Internet and particularly to their social networks anytime and anywhere. Companies and especially marketers have reacted to the changed consumer behavior. By now most decision-makers have understood that social networks are not a short term phenomenon anymore but rather a popular meeting point of their customers. To be able to fish where the fish are they hold meetings on how to attract fans and followers and how to generate clicks and likes on YouTube. However, what needs to be added to their agenda are discussions about how to reward their “mayor” and which special to launch to reward customers for checking in to their businesses.
Summary of Chapters
1 Introduction to the research question: Introduces the ubiquity of mobile and social media in daily routines and establishes the research goal of using Foursquare as a CRM tool for local businesses.
2 Research targets, design and methods used: Details the five-step methodological approach, including literature review, field study, pilot project, depth interviews, and an online survey.
3 Topic related background information: Provides essential context on CRM, social CRM, the customer relationship life-cycle, LBS, Foursquare functionalities, and the role of couponing.
4 How to best exploit the potential of Foursquare throughout the customer relationship life-cycle: Evaluates the potential of Foursquare in Germany based on survey data and provides a framework for using specials and campaigns to manage customer relationships.
5 Limitations of Foursquare and conclusion: Addresses privacy concerns and the currently low adoption rate in Germany, while concluding on the strategic benefits for small and medium-sized enterprises (SMEs).
6 Outlook: Discusses the future competitive landscape for check-in services and the ongoing evolution of Foursquare's role in the marketing mix.
Keywords
Foursquare, CRM, Customer Relationship Management, Social CRM, Location Based Services, LBS, Couponing, Check-in, Customer Relationship Life-cycle, Digital Natives, Local Business, Marketing Strategy, Mobile Application, Customer Retention, Customer Acquisition
Frequently Asked Questions
What is the core focus of this research?
The thesis explores the potential of using the check-in application Foursquare as a functional tool within a business's Customer Relationship Management (CRM) strategy, specifically tailored for small, local enterprises.
What are the primary themes discussed in the work?
Key themes include CRM definitions and strategies, the mechanics of location-based services (LBS), the design and psychology of couponing, and an empirical analysis of digital native behavior in Germany.
What is the main objective or research question?
The core objective is to answer how Foursquare can be practically and effectively used as a CRM tool throughout the entire customer relationship life-cycle to attract and retain customers.
Which scientific methods were employed?
The author utilized a mixed-methods approach comprising a comprehensive literature review, a field study of Foursquare usage, a pilot project managing a beach club's Foursquare presence, in-depth expert interviews, and an online survey with 362 digital natives.
What topics are covered in the main body?
The main body systematically progresses from theoretical CRM foundations to the specifics of Foursquare's features, a comparison with other check-in services, an analysis of couponing, and a comprehensive guide on implementing Foursquare campaigns and measuring their success with KPIs.
Which terms best characterize this work?
Important terms include Social CRM, Location Based Services, Foursquare, Couponing, Customer Relationship Life-cycle, Digital Natives, and Key Performance Indicators (KPIs).
What role does the "pilot project" play in the research?
The pilot project allowed the author to gain exclusive access to the administrative "back end" of a local business's Foursquare profile, enabling the testing of different "specials" and the observation of real-world consumer reactions.
Why does the author focus specifically on small local businesses?
The author argues that while large enterprises often possess sophisticated, expensive CRM tools, local businesses need accessible, low-cost solutions to manage and reward their customer relationships, a gap that Foursquare can effectively fill.
- Quote paper
- Annelie Roggenkamp (Author), 2012, Integration of location based services into the social CRM strategy, Munich, GRIN Verlag, https://www.grin.com/document/214948
