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How Indies Can Use FaceBook Places And Other Location-Based Tools To Increase Sales

by Donna Maria

Yesterday, I shared some thoughts on how to view, embrace and incorporate change into your life as a small business leader. Today, I want to share an example of how you can do this right now in a really meaningful way if you are Indie. It starts with an understanding of location-based social tools.

FaceBook Places

In a nutshell, these tools include things like FourSquare, Gowalla and, as of today, FaceBook Places. Each allows people to use their smart phones to “check in” at locations so they can update their friends on what they are doing and where they are doing it. Sound creepy? It may be — unless of course you sell products to consumers and want to enable them to tell their friends where to go to buy what you have to offer. Here’s what I mean.

In a conversation yesterday, a dear friend asked me why an Indie with a home-based business would ever want to really bother with location-based social tools. She explained that, if you want to work from home and you have a website and a FaceBook page, you can make your products at home and use a FaceBook storefront and your website to sell your products.

This is true. However, looking toward the future (“anticipating change,” in yesterday’s post), with millions of people using location tools to communicate with their friends, it will become increasingly important for Indies to become more visible in their local communities. Whether it’s a regular appearance at a local farmer’s market or a retail store of your own, the easier you make it for your customers to tell their friends that they just checked in and purchased something from you, the more sales you will make, and the more influence you will have in your own back yard.

It’s far too early to see exactly how this will all pan out. But with FaceBook’s Places, the company has staked a powerful claim in the location-based social field. I think it’s is going to be a powerful tool for Indies in the not too distant future.

What You Can Do

Here are some things you can do to begin to make location-based tools work for you:

  1. Investigate getting your place added. Each location tool has a process that must be followed in order to have your location added. Unfortunately, the FAQ pages at their sites are not very helpful in this regard at this time. (Gowalla does not seem to have the information readily available at all, outside of possibly in a message forum; Facebook’s is here, and FourSquare’s FAQ is here. The FaceBook one looks most helpful of the three, but I’m not sure if following those steps creates a place for you as a user, or a place for you as a “place” or business owner owner.)

    I’m thinking that, as these tools become more popular, each will have to be more forthcoming about how places are added, and they will have to create ways to incorporate very small businesses as they also delete or deny legitimate status to “places” that aren’t really places at all. (If I find this how to information, I’ll share it — if you have links, please share in the comments.) In the meantime, start using the tools yourself so you can see how they work, and then use your website, FaceBook page, blog, etc., to tell them how they can check in with you.

  2. Tell others. If you don’t have a location of your own to add, consider asking retailers who sell your products to add their locations, then let your customers know that they can check in at retail outlets to buy your products, and tell their friends. At some point in the future, maybe someone will launch an app that allows manufacturers to manage check-in locations through the retailers that sell their products. I think that would be a great app, but I don’t know if it’s out there yet. In the meantime, be creative. Work with your wholesale customers that have locations to create win/win situations for both of you. (This is a good example of “initiating change,” as discussed in yesterday’s post.)

  3. Consider co-op space. This morning, I visited the Light Bulb Coworking, Charlotte’s first coworking office environment. With a conference room, cubicle offices and open office desk space that people can rent starting at $50 a month, it’s a great way for people who work mainly from home to enjoy the credibility of a public location as they connect with other entrepreneurs in their area.

    As I toured the facility, I pondered that a similar set up may be possible for small manufacturers. Consider renting a commercial kitchen and then leasing space to other manufacturers to make products on a daily basis. The products made by participants could then be offered for sale in a common retails area.

    I haven’t thought this concept all the way through, but it seems to me that, if you could get 5 or 6 like-minded, hard-working Indies to participate, you could use location-based social networking tools to empower customers to check-in for manufacturing demonstrations, how to classes, and in-store promotions. The possibilities are endless, I think.

It’s still early to predict exactly how Indies can best use location-based social tools, and the jury is still out on the multiple privacy concerns involved. Having said, that, I firmly believe that the future of small business will include empowering customers on a local level to use smart phones to invite their friends to have fun supporting local businesses with them.

One initial hurdle is getting the men and women who run tiny companies from a home location to embrace the notion that their profitability may depend on allowing people to use social networking tools to find them at a place of business, and then check in with the world from that location.

Like I said, creepy on one hand. On the other, if you sell products to consumers, it’s worth watching how they use location-based tools and then being innovative about how you can take advantage of them to increase sales.

Question: Are you comfortable with the changes that will be required of your business where location-based social networking tools are concerned? Is it just too creepy? Or do you see opportunities to anticipate, initiate and respond to change in ways that benefit your business, your existing customers, and your customers coming down the pike. Or both??! Can’t wait to know what you think!

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posted on August 19, 2010 ·

Facebook comments:

  • Sara

    I can see the advantages; one local business, a restaurant, offers discounts to whoever becomes mayor of their restaurant on Foursquare. At the same time, my mind can't escape this Criminal Minds episode where the unsub (bad guy in lay language) targeted his victims through social media outlets and killed them based on just an unconscious recognition of the similarity of their facial asymmetry to his.

    I've been stalked on Twitter before by a guy who didn't seem completely… stable. I managed to take care of that problem, but it doesn't negate the fact it was creepy and left me feeling vulnerable. It's hard to balance the business-related need to be translucent and open with my desire to protect my own physical person and, by extension, those of my girls as well.

    • http://www.indiebusinessblog.com Donna Maria Coles Johnson

      Hey Maggie! I wasn’t talking about you using the location-based service. I was talking about you empowering your customers to use it — if you have a retail location. I think the time is already here where for many, half of the fun of shopping in a particular place is that a person can let their friends know what they are doing. If I had a store, I’d help my customers use Foursquare to tell their friends on FB and Twitter about my store and the great stuff they can buy there. No?

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Good points, Sara. I think this is one of the most significant issues of our time — being available, approachable and findable without sacrificing an uncomfortable level of our personal lives. It's an interesting conundrum, especially since more and more, some kind of business ownership is becoming necessary for most families — even if there are traditional jobs in play. It will be interesting to see how it all plays out.

    I've had my share of spam, but I've never been stalked on Twitter, but I've never had that fear. I'm so sorry that happened to you and I'm glad he went away. It's an interesting evolution, and I do think that sticking close to Indies in your area local area is one of the ways to be involved and transparent, but doing it in a “safer” kind of eco-system with people you can get to know and trust as fellow business people. Does that make sense?

  • Sagescript

    Sara, I'm with you. I don't know that I want people knowing where I am. I remember hearing on the news about a woman who was burglarized after saying on FB that she was going to a concert that night.
    I do like the coop idea though and know many artists commonly use that setup.

  • http://www.facebook.com/maggie.hanus Maggie Klostermann Hanus

    I'm leery of this too. I think people divulge far too much personal information as it is. But I'll be watching these new developments to see what unfolds. Thanks for keeping us on the cutting edge. I do think co-op spaces will become more and more necessary as costs rise and environmental degradation skyrockets and people band together to share and conserve resources.

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    What if you have a retail location (which is all I'm talking about here), and your customers want to share where you are so their friends can shop with you too? Of course their house may be burglarized under the scenario you point out above. (Let's hope not!!) On the other hand, if you are a retail store, it's like free advertising, no?

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Hey Maggie! I wasn't talking about you using the location-based service. I was talking about you empowering your customers to use it — if you have a retail location. I think the time is already here where for many, half of the fun of shopping in a particular place is that a person can let their friends know what they are doing. If I had a store, I'd help my customers use Foursquare to tell their friends on FB and Twitter about my store and the great stuff they can buy there. No?

  • http://www.mixtapemedia.org Alexandra

    very nice post! thank you for sharing that thoughtful explanation- our social media frim just recomended it on our Facebook page as the “best post we've seen yet on how small businesses can make the most of Facebook Places”

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Wow! Thanks for featuring it at your site. I'll try to find the link. I'm honored.

  • Auntlinda

    Maybe not creepy, but I’m still wondering how useful the location info might be for someone like me. I’m with your “dear friend.” I work from home. My products are only available online, and many of them are drop-shipped from my suppliers. Would I like potential customers in my community know what I have to offer? Yes, of course. Still, i doubt that the location thing would work. Love to be proven wrong!

    • http://www.indiebusinessblog.com Donna Maria Coles Johnson

      Hi Aunt Linda! Good questions — let me explain further what I mean. I’m not suggesting that anyone use Foursquare to announce their home address, even if their business is there.

      In your case, if you are a product manufacturer and your products are sold only online, then physical geo-location is really not an issue.

      However, if you sell your products to wholesalers who them sell them at retail at a physical store, then those customers can use location-based technologies to tell their friends that they just purchased your fantastic product at XYZ store.

      Let’s say I own the store and I buy your soap to sell to my customers. My customers can use Foursquare to share with their friends that they just bought Aunt Linda’s Lemongrass soap at Donna Maria Boutique. This will expose people to my store and your soap at the same time.

      The key is for manufacturers and retailers to coordinate. The buyers are already using the technology. If they leave Donna Maria Boutique and walk next door to the coffee shop, they’ll use Foursquare to share the cafe latte they just purchased. Why not empower them to talk about the soap that’s right there in front of them too?!

      What do you think about this approach?

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