When you hear of something being called the ‘next big thing in social networking’ or ‘the next Twitter’, it’s a reason to take note. Foursquare is a location-based social network that helps you connect with friends using GPS via your mobile device.  Location-based services aren’t new. If you have an iPhone, chances are you have some form of location-based weather app.

Foursquare is a self-described cross between a friend-finder, social city guide and a game that rewards you points for visiting locations multiple times.  Sound a bit silly? Well it is. But it’s also proving to be incredibly sticky, with users vying for the most check-ins at a specific location to earn the title of ‘Mayor.’

At its most basic, foursquare offers the simplest form of User Generated Content (UGC) possible – sharing location details via the check-in. I’ll admit when I first heard of foursquare, my immediate thought was ‘Okay, so what’s the big deal? Why would anyone care if I’m at Costco?’

Well other than my geeky-friends, businesses will care! Just think about the consequences from a merchant’s point of view.  You can begin to target customers for just-in-time, location-based promotions or rewards. In fact, in certain cities like San Francisco where foursquare has already taken off, Mayor perks such as a ‘free drink at the Marsh café’ are offered.

For retailers this type of location-based service has tremendous potential for increasing customer loyalty. A simple tap on an iPhone can associate a person with a local business thereby broadcasting buying intentions to their social network, as well as allowing you to deliver targeted offers.

While foursquare is still fairly new and doesn’t have critical mass at this point, one thing is certain - the evolution of social networking will include location-based services that can be leveraged from a cross-channel commerce perspective.