Will Foursquare’s New Strategy Work?

Foursquare announced a new customer loyalty program last week. As David Berkowitz said in a post on Social Media Insider, “It’s one of those decisions that could determine if Foursquare becomes a footnote or a phenomenon.”

As part of its grocery program, detailed in Fast Company, VonsClub members can link their loyalty cards with their Foursquare accounts to earn special coupons. They can automatically check in on Foursquare when their VonsClub card is swiped at the cash register and they can give a shout to Foursquare friends when unlocking rewards.

The first process makes checking in a breeze – swipe your card, no need to pull out your mobile phone and type away. The latter process sends out an unsolicited pitch for Vons.

Berkowitz foresees more creative ways to reach Foursquare aficionados. For instance, a beer brand could target a grocery store’s customers who check in regularly at sporting events or who check in anywhere weekly after 10 pm and offer them a reward that has nothing to do with being a frequent customer of a particular store.

Foursquare certainly is growing quickly. Since launching in March 2009, it has grown to 4 million users as of last month, up a million since August. Reportedly it’s adding 20,000 users a day. On the other hand, it’s got a ways to go and grow. According to Pew and Forrester, only about 4% of online adults use location-based applications.

So it will be fascinating to see several things: Will the VonsClub deal take off? Will Foursquare achieve mass reach? Will Facebook or other check-in services steal its thunder? Stay tuned.