In an attempt to usher in a new type of social networking directly with customers, Facebook launched their new Deals feature earlier this week. They already have two companies lined up to start off the promotions. The way it works is that mobile Facebook users can “check in” through Facebook places and qualify for discounts and promotions.
The first company to sign up was the Gap. On November 5th, the Gap is giving away a free pair of jeans to the first 10,000 people who check in with Facebook places. Of course, they have to provide proof of the check in, so they will have to show their phone to the store employees in order to qualify for the promotion. For the unlucky shoppers who don't make the 10,000 people cut off, they will receive a 40% discount on a pair of jeans.
The second company to rise to the occasion is 24 Hour Fitness. For each person who checks in at one of their locations, the company is donating $1 to Kaboom, a non-profit that builds playgrounds all over the country. The fund raising drive will continue until they reach $50,000.
The upside to promoting this way is that companies are going to be able to customize deals for specific geographic areas. For example, if a local store needs to have a promotion, they will have a ready list of people who visit their specific location. Many companies, the Gap included have used services like Groupons for local and nationwide promotions, but Groupons can't reach as large of an audience as Facebook.
The downside is that it is going to be difficult for these companies to prevent or limit fraud. Many people have multiple Facebook accounts and it could be fairly easy for one person to take advantage of discounts several times. This will be an even bigger problem when stores are offering free items for a limited number of customers. So far, there aren't an real strategies in place to deal with this. But, this technology is new, and getting in at the beginning with a marketing tool that has such potential is worth the risk. I am confident that new policies will be put in place to handle this concern.
Do you use Facebook places? What do you think about these sort of promotions? Let me know in the comments.
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By Melissa Kennedy- Melissa is a 9 year blog veteran and a freelance writer, along with helping others find the job of their dreams, she enjoys computer geekery, raising a teenager, supporting her local library, writing about herself in the third person and working on her next novel.
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