In the summer of 2010, Foursquare’s Head of Business Development Tristan Walker and American Express’s Vice President of Global Marketing Capabilities David Wolf started talking about ways to work together to redefine loyalty for local merchants.
The fruit of their conversations is now on display in the city Austin, Texas where 60 merchants — including Whole Foods, Starwood Hotels and Stubb’s BBQ — are offering Foursquare users “spend $5, save $5″ rewards when they load the special and swipe their AmEx cards.
The pilot program started Friday and will run through Tuesday, March 15. Participating merchants have posted “Austin Unlocked” window clings to highlight their participation, and Foursquare users need only register their American Express cards to unlock this new type of special — the Loyalty Special.
On Friday, Walker and I journeyed to Le Cafe Crepe so he could demonstrate the special in action. Upon arrival, Walker launched Foursquare, checked in to the cafe, tapped to redeem the offer and then hit the green “Load to Card” button to initiate the special — see a 44-second walk-through in the video above.
Several minutes later (there was a long line), Walker placed his order, the cashier swiped his AmEx card, and then together we waited for proof that the $5 savings reward had been activated by his swipe. Seconds later, Walker received a push notification alerting him that he had successfully redeemed the special. Soon thereafter, he also earned the “Swiped @ SXSW” badge — for each badge redeemed, American Express is donating $1 to Grounded in Music.
Walker was quick to point out that the experience was nearly frictionless, happening exactly at the time of sale without requiring integration with the cafe’s point-of-sale system.
This is what Walker and Wolf believe is a ground breaking initiative that finally creates the closed loop between a consumer’s digital behavior and their offline spending behavior.
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