Redbox and Foursquare: A Match Made in Marketing Heaven
The award for “why hasn’t this existed before?” goes to Redbox and Foursquare partnering up to allow customers to check in at kiosks. This partnership was announced on Thursday, August 11, 2011 and is one of the largest retail integrations for Foursquare.
In order to use Foursquare, customers must have a GPS-enabled smartphone which allows users to tell their friends where they are on their social media accounts, to find other friends nearby, and to rate products or services at local businesses and tap into special deals (more on the latter a bit later). Redbox has over 27,800 rental kiosks found across the country and currently Foursquare has 10 million registered users. They have also partnered up with American Express and Groupon to get their name out there to prospective customers in new markets.
The number of location-based app users more than doubled from 2010 to 2011.
These geo-location apps are a natural marketing fit for small, independent businesses who wish to draw new customers from the local community. According to a survey by Forrester Research Inc. in July 2010, it was reported that only 4% of all internet users in the US (around 8 million people) had ever used a location-based mobile app. However, by the next year in May, another survey by ComScore Inc. saw that nearly 17 million cellphone users had used a check-in service in March of that year alone. Sixty percent of respondents were between the ages of 18 and 34, which makes sense if you consider that the typical Redbox user falls into that age bracket.
Redbox already has a mobile integration strategy that plays an important role in their business model. Their iPhone and Android apps allow customers to check out real-time availability of titles at their nearest kiosk. With their apps, it’s even possible to reserve DVDs or games for pick-up later that day. This makes sense since people have a habit of carrying their smartphones with them everywhere. Why not have your brand and company right there, too?
To promote this new partnership, Redbox will be running a 10-day promotion beginning August 15 that will give customers daily discount codes (worth between 10 cents and $1.00 – remember though, each rental is only $0.99 a night) when they check into a kiosk using Foursquare. Ideally, this will create more buzz for Redbox and help Foursquare grow into new consumer markets.
Even though I do not have a smartphone and therefore don’t use Foursquare, I still think this is a great idea for both companies. Foursquare is trying to expand their brand and grow into new markets and Redbox is hoping to attract more followers following Netflix’s recent changes in pricing. It seems to be a match made in heaven, but we’ll have to wait and see how this turns out for both companies.
What do you think? Yay or nay for this partnership? Can you think of any other partnerships between companies that were a success (or a complete and utter failure)? Sound off below!