Will Facebook Places Grow or Destroy Foursquare?

Location-aware applications like Foursquare have been a hot topic across the web, especially on this blog, and although Foursquare has passed over one million check-ins per day, location-aware apps are still considered early adopter technology. Now, with the introduction of Facebook Places, location-based check-ins stand on the brink of mainstream acceptance. With the world's largest social network, boasting over 500 million users worldwide, the most recent addition to the location arena, it stands to reason that a giant percentage of the social media population is about to be exposed to check-ins for the first time.


There are still limitations, though, that must be considered. First is the ever present paranoia (sorry for the brief outburst of personal bias) regarding security. Checkins = privacy concerns = security breaches, no matter how strong Facebook's privacy controls are. That will remove a large portion of the potential user base. Second, location-based check-ins must be executed through Facebook's mobile site, meaning only smartphone users can partake in the fun. Once again this cuts down the potential user base. Finally, only the iPhone's Facebook app currently supports Facebook places. All other smartphones will need to access places through Facebook's mobile site, not the native app. For most smartphone users, this will require a deviation from current behavior to access Facebook through their mobile browser rather than the app. This deviation may too shrink the number of potential users. However, out of the remaining set of users who do use the new service, what will the introduction of Facebook Places do to their relationship with other location-based applications like Foursquare? We imagine two strong possibilities.


Facebook & Foursquare Play Nice


The first outcome is that Facebook and Foursquare form a beautiful symbiotic relationship and fuel the growth of one another.  This may sound like a pipe dream but it's actually possible.  How?  Facebook actually appears to be interested in this outcome.  Facebook is opening its Places API (the background set of codes that allow check-ins) to third party developers so that a check-in on Foursquare would equally result in a check-in on Facebook.  How this will actually play out though is still hypothetical as nothing has been released yet.  There are three possible tiers: good, neutral and bad.  The good outcome, for both Facebook and Foursquare, would be that the integration of the Facebook API to Foursquare's application increases the value of check-ins vs check-ins through Foursquare alone, resulting in either better deals and services for businesses, more rewards and badges, or a smoother, streamlined interface on the two apps.  This would potentially encourage Facebook Places users to adopt Foursquare because of the inherent advantages.  The neutral outcome is that nothing changes, for better or worse.  Foursquare still works the same, Facebook Places works the same, but a check-in through Foursquare now results in a check-in on Facebook as well.  This is still a win for both services, although not as enticing as the good outcome.  The bad outcome is that the integration makes using either service tedious or cumbersome.  This may mean the process has more steps, is slower, or results in excess spam or clutter on your wall.  This seems like a less likely possibility because one would hope that neither service would rollout an update that would hinder the user experience; however, it wouldn't be the first time and so it remains a possibility nonetheless.


One caveat, regardless of which of the three tiers plays out, is that the Facebook Place API is an open API, meaning it's available for all location-based applications to use and integrate.  Even if Foursquare creates a winning integration, Gowalla, Loopt, Whrrl or a dozen other apps could do the same thing.  On the contrary, Foursquare may create a wining integration while competitors don't, or vice versa.  The point is competition will still abound.  The silver lining is that Facebook and other location-aware apps playing nice together has a high potential to promote an increase in overall check-ins and and location-aware app use.


Facebook & Foursquare Battle it Out


The second, and less favorable option, is that two brands decide to fly solo and attempt to win the location battle based on their own merits.  Truthfully this will be a decision made entirely by Foursquare as Facebook has already committed to releasing its APIs.  If Foursquare decides they don't need Facebook to succeed or that a partnership with the social networking powerhouse would not benefit their users, they may decide to put faith in having the superior product and trust that new users interested in location-based products will continue to seek them out on their own.  This would be an extremely risky tactic, but one that would best preserve Foursquare's integrity as the leader in location-based check-ins.  If Foursquare uses Facebook's API, it could be seen as relying on the industry giant to validate its own services, rather than as expanding its compatibilities to provide users with a more complete user experience.  Not integrating Facebook's APIs, however, could look arrogant and would be extremely risky.  Millions of users already use the Facebook mobile application everyday, meaning check-ins through the Facebook app would require minimal extra work.  Expecting users to check-in through a separate app, something millions of users aslo already do, requires extra work that may result in check-in fatigue for a majority of users (a topic that you can look forward to in our follow up article).  


As with the above caveat, the same situation applies here.  Just because Foursquare decides not to implement the Facebook Places API doesn't mean that its competitors in the location-aware market won't.  This fact alone makes flying solo extremely ill-advised for Foursquare.


Implications


Based on initial numbers released earlier this morning, it appears that the launch of Facebook Places has already lead to a surge in new Foursquare users.  Whether or not these new signups will migrate to regular users is still unknown, but this is definitely a good step in that direction.  Ultimately our prediction is that one of two things will occur as a result of this influx: either Facebook will win the location war and become the only dominant player in the field or Places and its open API will fuel the growth of all location-based apps, increasing what is already a sea of potential players.  Either way, check-ins are here to stay and businesses need to be ready to act accordingly.  Users are checking-in at their favorite locations and they are expecting to be rewarded for it.  Business that jump on board now will become leaders in the industry and will be well rewarded for their efforts.  But don't take our word for it, just ask Gap.

Taking Responsibility for Our Tweets

When we grow up, our parents teach us that we must take responsibility for our actions.  That what we say and what we do have consequences, some of which can be quite severe.  As our society evolves and social networks become a prominent form of communication, it would seem logical that these same guidelines would apply to the digital realm.  Nothing we post online is completely private and we must be prepared to accept the ramifications of what we say and post.  For many though, Facebook and Twitter are stilled viewed as personal networks where we can do and say as we please without global or legal ramifications.  One celebrity in particular appears to be a member of this camp.  I am referring to the legendary Twitter Trending Topic king himself, Justin Bieber.

Recently Bieber participated in what would normally be considered a school yard prank.  Except, because of the pop star's fame and his method of delivery, the prank was broadcast to the world and could resort in serious legal action.  Bieber tweeted a message asking fans to call him at an included phone number.  The number actually belonged to an enemy of Bieber's (do Tweens have enemies?) and within minutes the boy's phone was blowing up with texts and voicemails.  This is actually the second time Bieber has been the subject of a Twitter scandal.  Last November, Bieber tweeted that he was headed to a CD signing at a mall, only to later cancel the event.  His fans, after waiting hours only to be told to leave, became violent resulting in one serious injury.  Apparently Bieber was supposed to tweet again that the signing was cancelled but never did it.  According to reports, it was Bieber's manager who decided not to post that the signing was cancelled.  Bieber's first tweet that he was on his way is what caused the crowd to become unruly and he feared that a tweet in the contrary would put the crowd in more danger.  Bieber's manager was arrested under criminal charges for the event.


Implications


So what does this mean for your business?  First and foremost, people are reading what you post.  No matter how few followers you think you have or how local your audience is, the contents of your posts are constantly being searched and indexed by search engines like Google and by users for keywords.  What you post is out there forever, being read by many, and you must be ready to deal with the effects of that.  If you tweet a customer promise, be ready to deliver on it.  If you post a comment about a customer, they will read it...and so will their friends.  Treat every word you post on a social network as if you're saying it directly to the customer's face.  Finally, this same effect works in the positive direction as well.  Made a mistake?  Closed unexpectedly due to a glitch?  Delivered a negative customer experience?  Apologize for it.  Let your customers know you recognize the error and will improve upon your service in the future.  


Don't let the potential downfalls of social media keep you from using a service that could greatly benefit your business.  Just be prepared and be smart about it.  What was the old adage your parents used to always tell you?  Think before you speak!

When Is a New Brand Identity just a Visual Refresh? - Part 3

Visual Refresh


Pros

• Unlike a brand identity, a visual refresh doesn't have to represent anything.  It can just be a fun, abstract, exciting design that attracts attention.  This makes it easier for design teams to create ideas and appeal to audiences.
• Advertising, design and branding blogs and magazines love to talk about the latest logo alterations.  A visual refresh is a great way to garner some free press.  This can be handy if your brand is losing relevancy and needs some attention.
• Since your visual design affects your packaging, a visual refresh is a quick, easy way to attract new attention on the store shelf.  Shoppers are always caught off guard by packaging they don't recognize and will give your product a second glance, which is a huge win.
• A visual refresh gives you the opportunity to always be modern.  As you will see in our case study below, your brand can constantly update its look to prevent looking outdated or obsolete.
• Similarly, your brand can refresh itself to find a look that resonates better with your audience.
• Finally, a visual refresh can be executed against a brand identity.  You can update the art styles used in your current brand identity to strengthen the appearance of the brand without losing the connection to your brand's positioning and value statement.

Cons

• The con of an abstract design is that it can be too abstract.  If your brand's look confuses your audience then they'll lose interest.
• The same can happen on the store shelf.  If your customer is confused and doesn't recognize your product they are more likely to purchase a competitive product.
• Obviously this can get expensive.  Creating a brand identity that fully reflects your brand and appeals to your audience the first time is much more cost efficient then consistently updating every five to ten years.
• If changing your look and using snappy visuals is the only way you can build awareness and interest in your product, your brand is probably a commodity item.  You may want to consider how you can position your brand to offer a unique benefit from your competition.

Case Study: Pepsi

Pepsi is a classic example of a brand who's visual identity mostly relies on visual appeal and not on a symbolic expression of the brand's positioning in the market.  The logo started as pure script, integrated a visual element that reflected what industry it operated in, and has since then shifted that element into something most people would no longer associate with a bottle cap.  As a legacy brand, Pepsi has the fortunate position of never needing to educate its audience about the product.  Everyone knows what Pepsi is.  So instead it can use its visual identity to create a sort of personality or lifestyle statement - light hearted, laid back, young, hip.  This is backed by one of Pepsi's old taglines, "The taste of a generation."  Pepsi needs to continually refresh its visual scheme to reflect a style that resonates with the youth of the generation.  For its current logo, the current trend of minimalism is blatantly apparent.

Image courtesy of Scarletbits.com

When Is a New Brand Identity just a Visual Refresh? - Part 2

Brand Identity


Pros:

• A brand identity allows a visual system to be more than just a logo.  The same set of values, beliefs and principles set forth in the positioning and brand promise that inform logo design also inform elements such as typography, color choices, and photography.  This allows for consistency and ease of design across all mediums, including website and advertising.
• A brand identity creates a scenario where the visual design says something about the brand.  Whether your brand is technologically advanced, family oriented, bargain centered or focused on safety, your audience will see these attributes conveyed visually.
• A brand identity never loses relevancy.  As long as your brand continues to deliver upon the same promise to its audience, your visual identity will continue to tell that story.
• Since a brand identity tells a story, it's never distracting.  Your visual language won't confuse your audience or hide who you are, but rather inform and persuade.
• A brand identity doesn't have to rely on gimmicks.  You can use emotional appeals, hard statistics and audience understanding to engage your consumer base instead of just bright colors, abstract designs and loud advertising.

Cons:

• Since, it is designed to last, a brand identity must be done right from the start.  If your brand identity doesn't tell a story, resonate with your audience or isn't able to withstand the test of time you will not only have lost time and money for development, but any initial momentum or excitement your brand initially garnered at launch will be lost as well.
• Your brand identity can also begin to feel stagnant.  Poorly designed brand identities that do not tell strong stories or create strong attachments with their audiences will begin to feel stagnant and often require a visual refresh to regain audience favor.
• Sometimes your brand promise may be hard to portray visually and your audience may not be able to understand your visual design or relate it to your positioning.  In this case, a brand identity may need to be paired with additional marketing techniques to sell the concept.
• Your design team may feel limited by the rules of your brand identity.  This isn't a problem with your brand.  Dump your design team (Branding Reason is not advocating firing your employees).
• If your brand changes, so must your brand identity, often from the ground up.  This can be costly and will require you to reeducate your audience about what your brand stands for and how to recognize you.

Cast Study: MapQuest


MapQuest has been a staple of the web since the beginning, but it quickly lost steam as Google Maps became the prominent online mapping service.  Parent company AOL is hoping to change that with the introduction of the new MapQuest site and brand identity. The first thing you'll notice about the new MapQuest interface is the clean, simplified look and feel.  Gone is the crowded, confusing layout of yesterday.  Additionally, the interface is more intuitive to use and the underlying system is smarter and capable of providing users with better results.

The first thing you'll notice about the new visual system is that it is clean and simplified as well.  The colors are soft and inviting versus the old red color scheme and the text is now sophisticated and easy to read, just like the new interface.  The format of the logo is also reminiscent of a math equation with the "q" portraying an exponent or superscript.  This speaks to the more sophisticated background technology.  Finally, according to MapQuest, the logo's design also invites users to feel a sense of discovery interpreting their own meaning to the design.  For a service that allows users to explore their neighborhood, this concept seems fitting.


You can view the new MapQuest site as well a video about the new design and brand identity here: MapQuest.