Most people associate "location based services" and apps with deals: check in get a coupon. And there are lots of scenarios like that out there today. But these apps and checking in are also about CRM/loyalty marketing and "brand engagement," although that's much less widely discussed or maybe even less well understood.

LBS is about building a relationship with a brand or company as much as one-off transactions. There are a number of examples of this but a particularly good one is Pelago/Whrrl's case study with gas station and convenience store Murphy USA. Here's Pelago's write up of the case and the results. 

Here's a short summary of the objective and tactics:

Murphy USA (which operates more than 1K locations in the US) "wanted to expand their presence into social and location as a way to build a strong, loyal online community that spread word of mouth about their brand virally." 

Murphy USA used Whrrl as the social platform and check-in tool. According to Pelago, "Murphy USA offered customers the opportunity to win $50 worth of free gas – just by checking in at their locations. To promote the offer, they used Facebook and Twitter to drive awareness and have fans join their Society. Murphy USA also had point of sale messaging at gas pumps with information on how to check in and win free gas, giving customers a compelling reason to activate at the pump."

A few results of the campaign: 

After the first few weeks of the program launch, 44% of respondents had never visited a Murphy USA gas station prior to the promotion.

84% of respondents told Murphy USA they chose Murphy USA over a competitor because of Whrrl’s Society Rewards program.

The program has driven over four visits per customer per month – two times the industry standard.

72% of customers using Whrrl are more likely to recommend Murphy USA because of the program.

Customers using Whrrl are spending 30 dollars or more on average per visit – this is twice the industry standard of 15 dollars per visit.

Pretty impressive stuff . . . the campaign had an impact on both customer acquisition and brand awareness/lift. 

I use this as an example to make a larger point: marketers should be thinking much more expansively about LBS and check-ins and what they can do with them -- not simply about driving isolated sales or store visits with coupons.