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McDonald’s Foursquare Success: $1,000 Pays Off Big

September 17, 2010 by

Mashable posted a fascinating article today about how McDonald’s spent a modest $1,000 on a pilot Foursquare campaign resulting in 33 percent more foot traffic in one day, more than 50 news articles, and 600,000 people opting to follow and fan the brand on social media sites.

McDonald’s Foursquare Day on April 16 used 100 randomly awarded $5 and $10 gift cards to lure Foursquare users into McDonald’s restaurants to check in.

Foursquare is a mobile application that helps you find out where your friends are hanging out and offers tips from other users on what to do once you get there. You use your phone to “check in” at different places you visit, and Foursquare rewards you for checking in with badges, points, and mayorships.

Rick Wion, McDonald’s head of social media, shared his company’s Foursquare success story at Wednesday’s Mobile Social Communications conference.

“I was able to go to some of our marketing people—some of whom had never heard of Foursquare—and say, ‘Guess what. With this one little effort, we were able to get a 33 percent increase in foot traffic to the stores,'” he said.

Earlier this year, Mashable reported Domino’s UK also ran a hugely successful pilot Foursquare compaign rewarding Foursquare mayors with free pizza once a week. The UK pizza retailer attributed its Foursquare pilot program as a primary factor in helping the company increase profits by 29 percent, which equates to roughly $26 million.

How do you think Foursquare will change the future of advertising? Share your ideas in the comments section below.



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About Monica

Monica specializes in strategic communications, web and new media, and print materials with an international or multi-cultural context. She has worked on national public outreach campaigns targeting multi-cultural audiences and has conceptualized, written, and/or designed multiple websites. Monica also has written, edited, and/or designed high-profile newsletters, brochures, and reports, including some prepared in collaboration with the White House. She holds a bachelor’s in journalism and a master of international service with a focus on international communication. Monica is based in Washington, D.C.

Comments

  1. Math Mom says:
    September 22, 2010 at 12:34 pm

    I hate to be the bearer of bad news, but your math doesn’t add up. McDonald’s serves about 26 million customers per day in the United States, but Foursquare has only a million users here. How could Foursquare possibly cause a 33 percent increase in foot traffic?

    • Monica says:
      September 22, 2010 at 4:48 pm

      Thanks so much for taking the time to point out the math problem!!! I checked it out and Wion noted on Twitter (see http://twitter.com/rdublife/status/24767203971) that he meant “the 33% increase was in the number of check-ins. We consider check-ins the same as a person entering the restaurant.”

      Even with the numbers clarification, I personally think McDonald’s FourSquare feat is still a great story. While I agree a 33 percent increase in check-ins is no where near as remarkable as a 33 percent increase in customers (which I believe is how you read the story), I think the increase in check-in traffic combined with more than 50 news articles and 600,000 people opting to follow and fan the brand on social media sites is a truly amazing result for a miniscule $1,000.

      Thanks again for taking the time to comment on my blog and point out numbers that didn’t add up/weren’t clear in the least!!!!

      • Monica says:
        September 22, 2010 at 5:27 pm

        P.S. I just noticed the Mashable article I originally got the information from has added a clarifying update to the article. Math Mom had you seen that?