LocalResponse Is Worth Checking Out

I had the pleasure of interviewing Nihal Mehta from LocalResponse, a company that provides marketing services tied to location-based interactions. Said another way, if you check in or mention your location via a social service, Nihal makes it easier for companies to interact with you.

My first response was “hmmmm, I’m not sure I want that kind of interaction.” I might have said it even more harshly. As an end customer, I don’t want to be walking by Starbucks and have them send me a coupon if I come inside. However, Nihal mentioned the two major use cases for the service:

1.) I mention favorably or neutral that I’m going into Walgreens for something. The service would respond with appropriate coupons for such.
2.) I mention unfavorably that I’m checking in somewhere. The service would respond with an appropriate competitor’s offer for such.

Seems reasonable. They’ve had a less-than-1% opt-out rate so far, and they’re clocking billions of check-ins a month. Not through simply Foursquare, mind you. But that’s why you have to watch this interview:

If you can’t see the video, click here.

I’m convinced that what Nihal’s offering is an interesting tool for marketers, and I’d have to see what I feel when using it as an end user. What’s your take? To get more info on the service, swing by LocalResponse.com.

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  • deb dibiasie

    Like you Chris, mixed reviews until I heard the Interview. Thanks for sharing

  • http://raulcolon.net Raul Colon

    I think this interview clarified some of the doubts I had on the service. I really like the fact that they reach out to potential customers who are unhappy with their competitors. 

  • http://twitter.com/KellyTirman Kelly Tirman

    I really like that they are learning from their mistakes and thinking through the user experience. Has anyone read the book Location Based Marketing for Dummies? If so, I would love to hear your thoughts about this service based on what you took away from this book.

  • http://cashwithatrueconscience.com/rbblog Ryan Biddulph

    The opt-out rate alone is eye catching Chris, and warrants a deeper look. Thanks for sharing with us.

    RB

  • http://twitter.com/junctiongen Jennifer Norene

    I had reservations until I heard the interview. Is secrecy completely avoided with the consumer? In other words, is this a service I sign up that includes specific opt in opportunities to hear from Local Response? Everyone grew to hate and resent secret packaged software downloads (the advertising worlds version of a Trojan horse). If this service is sold and signed up for with zero “games” for the consumer, I think it is very powerful. I would love to see the consumer interface.

  • deepti

    hi chris
    If you can’t see the video, click here.
    that links not working?

    tke cre

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  • http://www.gadgetmvp.com Chris Lang

    I do want to walk past a Starbucks and get a coupon. I walk past Starbucks everyday, I drink coffee everyday.

    BUT wouldn’t it be nice to have an app that shows what is around me and the coupons? Oh wait, My Android phone already does that for me with maps and Google Places pages.

    If I am unsatisfied with a company, they I won’t even check in. Just my 2 cents Chris….

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  • Krissy

    The sentiment-targeting idea is exceptionally creative. Not only are you catering to the psychology of social media, but to human motivation. If someone feels strongly enough to post something unfavorable about a product or brand then I’d imagine they’d be more willing to act on its competitor’s incentive. The competitive atmosphere will be great for the end user.

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    For making any business broader , one needs to build it locally and effectively also. And for the local business, different social networks be very helpful these days, and to know the competitors & to know their strategies to build own strategies is also need. But one thing one can do is that do not do better in your business than your competitor do ,but always try to do something different to attract people at you. This will be more beneficial. Thanks for sharing with us.

  • Pam

    So… wouldn’t you also have to Disclose every time you use this service?

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