If you’re addicted to Foursquare, then you know the “special sauce” that makes this application a perfect synergy between social networking, gaming, and business. The Foursquare fad hit Miami about two months ago and I’ve been HOOKED! The application (available on a host of smartphone platforms) does a terrific job mixing social networking with a real business model.

For those who don’t know, Foursquare is a mobile application that lets you track where you are and “check in” when you go somewhere. You can add a status and keep track of your friends, like on Facebook and Twitter. But, the application is also a game. You get points for participating in various activities, such as checking in at a location for the first time, traveling a certain distance between check-ins, or checking in often at the same location over time. The “mayor” of a location is the one with the most check-ins there. Additionally, you can earn “badges,” which reward combinations of behaviors . For instance, you get the “Bender” badge if you check in to bars four nights in a row. If you check in at three karaoke lounges, you get the “Don’t Stop Believin’” badge (see full list of badges).

I don’t think I’ve written about loyalty programs in the past, so this seems like a great place to start. The exciting thing is that Foursquare enables all of your past loyalty program ideas to exist within its framework.

Examples of Current Loyalty Programs

Here are some examples of companies using different reward schedules to honor their loyal customers:

1. The Mint L.A. – Battle for Mayor! 1st checkin = One round of 2-for-1 Draft Beer/Wine. Every 10th checkin = One round of 2-for-1 Draft Beer/Wine, 1/2-off one Appetizer. And for The Mayor = Each mayor visit get free entry, VIP table (seats 2-6), one 1/2-priced appetizer, a 2-for-1 Draft Beer/Wine
2. The Wynn Hotel (Las Vegas) gives you a free glass of champagne when you check in at the Blush nightclub.
3. Alamo Drafthouse gives you two free movie tickets if you are the “mayor” of that location.
4. 14 Below – Santa Monica: Every 5th checkin = First round 2-for-1 draft beer, On 14th checkin = One round of 4-for-1 Draft Beer. And for the Mayor = Free Entry, $1 PBR Drafts all night

Special mayor-only rewards are cropping up…and they’re creating customer loyalty battles that are good for regulars and great for businesses. It also develops a deeper connection between place and patron Get instant feedback. Good customer reviews lead to new customers.

Loyalty Programs on for your Venue

If own several nightclubs or throw several parties, you could work with Foursquare to create a badge for consumers who patronize each of the venues or parties. Similarly, you can create very cool cross-sell promotions to reward consumers who visit your location or a certain party several weeks in a row. The possibilities are endless!

A Great Mashup

Is Foursquare a fun way to keep in touch with your friends, the new face of customer loyalty programs, or a novel way to compete with your friends? It is all of the above, and very exciting to consumers and businesses alike.