Retail surgery: What does Facebook’s updated Places platform mean for retailers?

Facebook Places - available through its mobile site on smartphones - allows people to ‘check in’ wherever they are and see who among their friends is or has been at the same location. It also lists nearby businesses, and the updated platform now means people checking in at participating venues can be rewarded with coupons, discounts or free gifts - the opportunities are endless. But will this usurp traditional loyalty schemes?

Alex Horner, digital strategist at direct marketing agency LIDA, says one benefit is that location-based rewards are more social. “They’re built on social platforms - telling people where you are, who you’re there with and what you recommend at that venue. When’s the last time you got out your Nectar Card and swapped shopping tips?”

Furthermore, they’re delivered in an easier way - instead of carrying a purse full of loyalty cards, a mobile app is on your smartphone that you carry with you.

However, one disadvantage is there is no link to purchase history. “Schemes like Boots’ Advantage Card are so powerful because they ‘learn’ your purchase habits over time, enabling more tailored cross-sells and rewards. This isn’t currently possible with these new platforms,” says Horner.

Will location-based rewards oust traditional loyalty schemes in the near future? “No, not yet anyway,” says Horner. “Aside from such barriers, there is minimal consumer uptake at present. For the moment they’ll remain a fun test for forward-thinking brands rather than a serious replacement for existing schemes.”