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Starbucks driving traffic through new social media initiative.

Starbucks has launched a new discounting initiative through the popular application Foursquare that could potentially increase the ROI on promotional activity.  For those of you that are unfamiliar with the application, foursquare enables users to “check in” at locations via their mobile device.  This allows foursquare members let friends know where they are and share information.  Additionally, members can accumulate points with each check in and become a virtual mayor of a given location if they check in at a location more than anyone else.   Please email with any further questions, our social media guru, Daryl Jones, will be happy to help.

This is relevant for Starbucks in that their new drive rewards the virtual mayor of each Starbucks store with deep discounts - $1 off a “however-you-want-it Frappucino”.  Location-based loyalty programs will likely become more and more commonplace; this type of promotion focuses on best customers and their ability to spread the word about a service or product.  In the case of Starbucks, this is a meaningful discount and may serve to drive some additional traffic and brand awareness.  The company is clearly thinking of innovative ways to drive their top line.

SBUX: THE SOCIAL MEDIA PULL - foursq