Foursquare is exploding in popularity. Last month there were huge celebrations on Foursquare Day (4/16). Foursquare hit 20 million users and two billion check-ins in April. Are you taking advantage of all the ways you can use this social media tool to help grow your business?

Foursquare is a mobile application which is location based. Users “check-in” to venues with their smart phones. The GPS in their phone locates venues that they are near. Users get points for checking in and can connect with friends on the app as well. There’s also a leader board that keeps track of user’s points. The individual with the most check-ins at an establishment is dubbed “The Mayor.”

One of the biggest reasons users love Foursquare are the badges earned during check-ins. Some are earned when checking into a certain number of different venues (ie, 10 different movie theatres earns you the Zoetrope badge). Other badges are earned with group check-ins. A swarm badge is when 50+ Foursquare users are all checked-in at the same location. Some badges are more ambiguous like the Socialite badge, which doesn’t have a clear definition of how it is earned. Users must continue to check-in at various locations not always sure what unlocks different badges.

Foursquare also allows businesses to give users specials when they check-in to their venue. This can be a dollar amount off a product or a free appetizer, or any number of specials. There are also loyalty specials. For example, “Receive a free coffee on your fifth check-in.”

How Foursquare Helps you Attr Customers:

• Businesses can offer “first-time” specials to get customers to give them a try.

• Foursquare check-ins can be shared on Facebook and Twitter for added exposure for businesses.

• Specials promote loyalty. You can create specials that users get after a certain number of check-ins. Check-ins are the new punch card.

• Mayorships are like bragging rights for Foursquare users and pit them against one another. No one likes to lose their Mayorship which advocates loyalty and repeat business.

• Tips – users can leave tips about a venue that others can read. Avid users of Foursquare read the tips before visiting, to know what their friends recommend.

These are just a few ideas of how you can use Foursquare to increase traffic to your business. Foursquare can help your company win first-time customers as well as encourage loyalty. To get started, claim your business on Foursquare and set up your first special.