Typically, the next “big thing” in the digital world generates new users much faster than it generates profits.  If savvy marketers take advantage of the opportunity Foursquare provides, the fast growing social app may prove an exception.

If you’re not familiar with Foursquare, members use their phones to “check in” when they visit various locations.  By doing so, their Twitter and/or Facebook accounts are updated with their location, and they accumulate points and badges which can be used in a variety of ways.

What Foursquare represents to retailers is the opportunity to track when and how often customers visit them, as well as what other activities they combine with those trips.  Who wouldn’t want to know the days of the week, peak times, etc. that their most loyal customers visit…or reward them for their loyalty?

As an example, Pepsi is rolling out a program that notifies Foursquare users when they’re in the vicinity of a retail store or restaurant location that sells Pepsi products.  When users check in at those locations, they’re awarded points that can be redeemed for products, offers, or donated to charities.

While it’s grown quickly, Foursquare currently has just shy of one million users.  However, given the unique opportunity it provides for consumer tracking, location-based offers, and customer loyalty incentives, its most important growth may soon come from advertisers.

Tags: Foursquare, Location-based Advertising, Pepsi