Radio Shack was scheduled to end a month-long Foursquare promotion yesterday, but instead has chosen to extend the campaign through June.  Why is a major national retail chain so smitten with their Foursquare initiative, and has it produced measurable success?  At the Ad Age Digital Conference last week, Radio Shack CMO Lee Applbaum said that Foursquare users at Radio Shack were generally spending 3.5 times more than non-Foursquare users.

Most of Radio Shack’s 5,000+ stores use Foursquare to promote “special offers” to nearby shoppers, according to this report from ClickZ.  So far, the campaign has yielded strong redemption rates and “promising revenue” by delivering a young, tech-savvy demographic with money to spend:  in general, Foursquare users tend to purchase items with a higher price point.

Radio Shack is choosing to maintain their presence as the competition in the realtime mobile space heats up. ClickZ quotes Adrian Parker, Radio Shack’s social media director, on his reasons for continuing the campaign: “We really wanted to carry our momentum over without having to re-implement the program,” he said. “It’s becoming a valuable part of our retail strategy.” 

The bottom line: use what you sell to attract consumers back to your brand.  Radio Shack has sold more than 72 million cell phones in the last 10 years, making mobile-based promotions a natural fit for its customers.

How Radio Shack’s Location-Based Marketing Campaigns Work:

• Foursquare users don’t have to follow Radio Shack to be alerted of its special offers.  When a Foursquare user is near a Radio Shack location, they’ll see a “Special Nearby” icon on their phone screen (if it is the closest available merchant deal on the platform). When they click on the icon, the offer details and the store’s location come up.
• Foursquare’s 3.0 app, released last month, allows brands to run different special offers across various locations, and brands can choose from seven types of “specials.”  The Radio Shack campaign offers a “Newbie Special” (1st time check-ins get 20% off), and a “Check-in Special” (users get 10% off).  Mayors get 20% off.
• Radio Shack is also experimenting with the Google Latitude Check-in Offers program, which offers tiers of checking in. Check-ins on Google’s platform at Radio Shack can make you a “SHACKaholic” (top tier – 20% discount), a “SHACKspert” (middle tier – 15% discount) or “SHACKreational” (entry tier – saves 10%).

Radio Shack is ranked #48 among the top brands on Foursquare by follower count, as compiled by Foursquarebrands.com.

See more case studies and learn the latest on location-based marketing at Realtime NY 11, which we are hosting June 6 at BB Kings in Times Square.