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PlaceConf: How Foursquare & TouchTunes Use Location to Transform In-Bar Jukeboxes

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TouchTunes, the largest interactive entertainment company in the U.S., and Foursquare, the world’s top location intelligence company, today unveiled a case study at the Place Conference in Times Square that reveals 33% growth in YoY mobile coinage/revenue for TouchTunes following the implementation of Foursquare’s Pilgrim SDK.

TouchTunes (TT) went in search of a better, more personalized customer experience for bar-goers who use the TT app to play songs from more than 65,000 jukeboxes around the country. After attempting to rely on beacons (too expensive and hard to maintain) and geofences (lack of accuracy at scale), TT A/B tested Foursquare’s passive location technology, Pilgrim, against beacons deployed. With weekly tracking of metrics and KPIs, TT found that Pilgrim increased user engagement and songs played significantly. In March, it was time to lean in to the Foursquare technology.

With Pilgrim SDK, TouchTunes was able to improve the level of message personalization from broad and generic messaging to more personal and timely push notifications that tell the app user, essentially, “one of your favorite songs is a top song for this bar. Play it now,” “Your favorite band just dropped a new song, swipe to play!” and more. Lifetime opt-out from the TT app decreased to a mere 1.2% once consumers started getting these messages; they were 3-4x higher before Pilgrim.

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An example of current push notifications from TouchTunes to app users, from personal to broad. The personal and timely notifications drive highest in-app engagement.

According to Greg Sterling, moderator and VP, Strategy & Insights, LSA, “This is the best example I’ve ever seen of personalization.” When pressed on why, he shared that it is the true manifestation of a better customer experience. Millennials and Gen Z want personalization, he says, and this TT/Foursquare example showcases what that can mean in practice.

TT’s personalized messages are at the center of the product experience; they are non-intrusive and drive more revenue. “It’s just a terrific example of alignment between a company and users and how location is can be at the center of that,” Greg said on Monday.

What’s next for TouchTunes? The company will be using Foursquare technology to expand its bar loyalty program, and implement what they are calling Project Moneyball: using aggregated insights to determine the most efficient bars (highest in-app plays per 1K bar-goers, not necessarily based on overall popularity or revenue). With these insights, TT can do an analysis to understand the best, highest-yielding bars to distill new learnings on how to further grow business.

Steven Rosenblatt, president of Foursquare, says “[This case study proves] …it’s clear, the future is in software and being able to do precision and contextual experiences at scale. Marketing analytics and location intelligence allows you to better understand your customers when they are in your store because you know who they are. In terms of market segmentation, this is the cutting edge. It is what the future of retail and in-store experience is all about.”

As for Foursquare, the location intelligence company continues to offer a slew of analytics and measurement products that deliver software solutions at scale and allow companies to leverage the transformative power of location intelligence.

See the full case study here: TouchTunes integrates Pilgrim SDK and drives increased engagement and revenue.

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