Linking Customer Loyalty With Social Networking

Stephanie Clifford:

PEPSICO wants to sell its customers sodas whether they are near a grocery store, a restaurant or a gas station. With a new partnership that weaves its loyalty program into the location-based network Foursquare, PepsiCo gets a live notification when its customers are close to those sites, and can present offers that get them into the stores.

"Being able to drive foot traffic into our restaurant partners and our retail partners is a huge opportunity, because that's where our product is sold," said B. Bonin Bough, director of social and emerging media for PepsiCo. "Ten blocks mean a lot."

Through smartphones that signal someone's location, stores and brands like Starbucks, Tasti-D-Lite, Macy's and Pepsi are getting live information about when and where people are shopping. Some companies are turning Foursquare into a virtual loyalty-card program, while others are creating their own location applications, offering customers discounts or other rewards for shopping.