With Facebook's recent roll-out of Places, many have posited the beginning of the end for what had been everyone's LBS darling, Foursquare. After all, Facebook's built-in user base of over 500 million people they could dwarf Foursquare's user base of about 3 million with even a modest rate of adoption (about .6%.)
Facebook also has the benefit of an interface that people are not only accustomed to using, but that all their friends are on as well. As one middle-aged woman pointed out, she wasn't going to use Foursquare on her iPhone because none of her friends were on it. But would she use Facebook places? Of course! Her friends were already on Facebook.
With all that Facebook Places has going for it, how can Foursquare possibly compete?
1. Improve business offerings
While current business offerings are good, they won't be enough to make up for Facebook's larger user base. Foursquare needs to prove that spending time on their platform is worthwhile for a small business. Improve analytics and the ability to interact with users who check in to a location. Could you imagine the ability to offer behaviorally targeted specials to users? For example, a user who regularly checks into bars might appreciate a half priced cocktail more then free appetizer.
2. Drastically improve customer service
On a recent project for a client, it took approximately four months for our location claim and special to be processed. In today's environment, a four month response time is unacceptable and sets a poor precedent for Foursquare's relationship with their customers. You can bet after that experience, if Facebook's response time is even a fraction of Foursquare's, I'll be a happy customer.
3. Facilitate discovery
Make up for Facebook's numbers by being better at discovery. Help users find new people and places to connect with. At this point in their development, Foursquare must have enough user data to make this happen. This way, even if your friends aren't yet on the network, you can still find value
4. Make the application simple to use
Let's be honest. The Foursquare interface is a bit clunky. For a non-technical user it might even be downright baffling. And the issues Foursquare has with uptime doesn't do it any favors. Since the interface behind Places may even be worse, Foursquare has a real opportunity to gain users if they strip down and simply how the application is used. Why are services like Tumblr and Postures able to steal users from Blogger and WordPress? Because they're dead simple to use!
Do you think Foursquare should be concerned with Facebook's entry into the LBS market? Or do you think there's room for multiple players? How do you think Foursquare can improve their service?
Original post: Four Ways Foursquare Can Survive the Facebook Onslaught