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Gaining Insight From Social Media Data

A Consumer Behaviorist Looks At The Death Of Facebook Places

by Tom Webster on August 24, 2011

Facebook recently decided to kill off “Places,” its entry into the location-based apps and services game. There are a few schools of thought regarding what this means for Foursquare, specifically, but also for the “check-in,” period. Certainly, there is a simplistic point of view that sees this as good for Foursquare – the giant competitor they feared has exited the space, leaving Foursquare with a far less crowded playing field to contend with. The other side of this argument holds that it is actually a coup for Facebook, in that they have managed to do away with the check-in altogether, in favor of less obtrusive means of adding location data to status updates.

I am not an expert in location-based apps and services. I do think there are lots of other things Facebook could have done with Places, however (for ideas, see the new book from Aaron Strout, SchneiderMike and B.J. Emerson, “Location-Based Marketing For Dummies.“) So I’m not going to speculate about the future of Foursquare, Facebook OR the check-in. I do note, however, as someone who makes his living studying consumer behavior, that saying the check-in is dead presupposes that it ever really had a chance to live in the first place. While some small subset of Twitter users may have had their time in the sun with location-based check-ins, the concept was never really explained well enough to mainstream users to have ever really had a chance.

The best thing that could have happened for the check-in would have been for Facebook to have been successful with Places – and to have crafted a value proposition that the average user could understand and get behind – which would have, in essence, created the mainstream proposition for check-in behavior. Instead, we had very little in the way of explanation, few explainable “benefits,” and, of course, privacy kerfuffles.

In other words, the fate of the check-in was squarely in Facebook’s hands, and either through omission or commission they allowed it to founder. Having the megaphone of Facebook clearly explaining the value of a check-in would have trained mainstream Americans to engage in the behavior, which would have been good for Foursquare, not bad. Now Foursquare needs to articulate that value all by themselves if they hope to cross the chasm and crack the larger market they could potentially reach.

In that sense, Foursquare was Betamax, and Facebook VHS. Two competing “standards” for check-ins, with valid argument on both sides for which standard was best. Sure, Betamax lost in the end. But what that battle did do was establish the value of videotape for home recording and viewing. In the case of the check-in, Facebook’s VHS has exited the game, but before either side could teach us that we wanted, or needed to tape things.

So, conventional wisdom now holds that the check-in is dead. Maybe so. There does seem to be a lot of that “conventional wisdom,” however, for a class of service that really didn’t ever have a proper value proposition for 95% of the population. Pundits (and yes, I suppose I am one, too) will say that “people don’t want to check-in.” I don’t believe this, and never have. It’s all a question of how the check-in is framed. Every time you go to the grocery store, and use your MVP/VIP/Loyal Shopper card at the checkout, that’s EXACTLY what you are doing – you are telling the store, its parent company and anyone else who accesses that data WHO you are, WHERE you are, and that you buy diapers, beer, chocolate and condoms together (big night!) So I don’t buy that the average American wouldn’t check-in.

Maybe Facebook just didn’t try hard enough.

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  • http://schneidermike.com schneidermike

    Tom, thank you so much for the shout-out and more importantly, for a very thoughtful perspective on this topic. 

    The check-in is not dead. This unnatural behavior will, however eventually be relegated to foursquare and anyplace that turns it into a more natural behavior (ala adding a photo to instagram and swiping your loyalty card at Tasty D Lite). 

    I have been recommending to anyone who will listen to build check-in functionality on top of foursquare. The API is open, it’s beautiful and it’s (currently still) free. The team is clearly dedicated to the mission where others, (even the Gowalla team) have faltered on the value of the check-in. 

    It’s important to note however that no one is faltering on the value of LOCATION. It’s  important to note  LOCATION is not dead. The use is evolving and as you eloquently note, being wrapped up in other processes. The semantic data wrapped around location is as important as ever, we are just figuring out ways to put it in the hands of more users.  I am currently obsessed with The Level Up. It’s inverted deals platform takes the unnatural behavior of checking in and does away with it. It also eliminated the need to take out a coupon, buy a stupid group deal or even take out your wallet to pay. This is where location is heading and the evolution has been speedy! 

  • Pingback: Foursquare’s “Win” and How it Affects Location Based Marketing | Twin City SAM – Catch 22:

  • http://www.convinceandconvert.com jaybaer

    It’s as if VHS decided, “we care so little about this we won’t even allow our tapes to be rewound.” 

  • http://www.edisonresearch.com Tom Webster

    Ha! Just so, Jay.

  • http://www.mattsnod.com mattsnod

    Great points, Tom. With the exit of Facebook Places and the addition of Foursquare’s “event” check-ins, this is a win-win for Foursquare. They’ve managed to slip into someone else’s territory (second-screen check-ins) and lost their biggest competitor. Now all they need to look out for is Google. Never count them out.

  • http://twitter.com/webby2001 Tom Webster

    Just so, SchneiderMike! – in NO way is location dead. It’s just getting started. I do think there will be a subset of users who will continue check-in behavior as it exists now, and I suspect you’re correct that this behavior will be relegated to Foursquare (and “relegated” is just the right word.)

    I would say, though, that yes – the evolution has been speedy. Perhaps too speedy. The average consumer never got the memo.

  • http://twitter.com/webby2001 Tom Webster

    I’m not counting them out, but I do think Facebook could have “warmed the market up” a bit for them, and it’s easier to position yourself as an alternative to something people understand, than a new thing people don’t. And the vast majority of people, statistically, just don’t – yet. I do like “Event” check-ins, though.

  • http://lighthouseinsights.in/ Prasant Naidu

    Facebook did clone couple of features and Places is one of them. Well it was late out here in India so started using Foursquare. Initially it was all fun but now I am a mayor of 40 odd places but what am i suppose to do with them other then sharing them on the Twitter timeline. One of the reasons is LBS market is nascent in India
    So as you said that the users never understood what to do with LBS things and also never under stood what to share and where to share. However I am not sure what is the game plan of FB but the question remains why haven’t they tried or did they realize that clones don’t survive for long. 
    Great post as always :)

  • http://www.brandstrategy.co.za Michael Said

    Nice post, change is good in many instances however many people are resitant to change. 

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