Facebook recently rolled out "Places," a location-based sharing application popularized by such startups as Foursquare and Gowalla. Much has been written about Places, but in this article I'll review the possible business uses for it. (Todayisp.com facebook place: http://www.facebook.com/profile.php?id=100000579627081)

When a user arrives at a given location–a physical retail store, for example–he "checks in" to share the location via Facebook and to see which of his friends may be in close proximity or who have also checked in at the same location. When someone checks in, the information is shared on the user's Wall, friends' news feeds and on the Place's page.

In order to take advantage of Places, the user must have either a web-enabled smartphone that can access Facebook's mobile site and supports geo-location, or the Facebook iPhone app. (Facebook plans to roll out similar apps for Android and Blackberry in the near future.)

The question is, does Places have relevance for business, especially where online merchants are concerned?

Because Places is dependent on access to a physical location, if the merchant does business strictly online there appears to be no benefit, at least not at this time. For those merchants who also have a brick-and-mortar presence, the opposite is true.

The key benefit has to do with Facebook's viral sharing capability, which is the heart of the platform. When a person checks in at a place of business, because that information is shared with friends, it becomes a tacit recommendation for the business. Call it word-of-mouth marketing, passive promotion or whatever term you choose, the user's activity lends credibility that yours is a business worth talking about.

That being said, business owners don't simply have to sit on the sidelines passively waiting for consumers to check-in. There are a number of tactics they can take to pro-actively encourage such behavior.

    *Special offers. Provide special offers, discounts or free gifts for customers who check-in. To encourage loyalty, repeat customers can be rewarded with additional offers and special recognition.
    *In-store signage. Place signs in the store to encourage users to check-in.
    *Online promotion. Retailers that have Facebook Fan pages or Twitter accounts can use those, as well as other online outlets, to promote their Places.
    *Word of mouth. Encourage customers to share their experiences with businesses via Facebook.

How to Get Started

To get started using Places, a business first has to claim its listing. Facebook's Places FAQ outlines the process this way:

     To claim your Place, search for your business name on Facebook via the normal Search bar. If your business’s Place already exists on Facebook, click on it to visit its page. At the bottom left side of your Place there will be a link that says "Is this your business?" Click on the link and you will be directed to a claiming flow.

 (Todayisp.com facebook place: http://www.facebook.com/profile.php?id=100000579627081)

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