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The Palms Casino Resort is one of those spots in Las Vegas that's notorious for its "hip" status. (It even spawned a reality TV show called "Party @ the Palms"). So when the Palms was featured as one of the first companies to offer location-based deals on Facebook, the pairing made sense. After all, "hip" companies are the first to experiment with "hip" new ad units, right?
According to Larry Fink, the Palms Casino Resort's executive director of public relations, offering Facebook Deals is about more than just being hip. It's about creating opportunities to generate incremental revenue from customers already earned through other means.
Has the Palms participated in any other location-based promotion prior to Facebook Deals?
We recently participated with Foursquare to offer a 2-for-1 drink promotion at our Island bar with a check-in. Our Nightclubs have a “mayor” offer for free admission as well.
Had people been checking in to the Palms venues on their own, before you launched the Foursquare rewards?
Yes, prior to both the Foursqaure and Places incentives, guests were checking in without prompting, including leaving helpful tips on Foursquare.
So how does the subset of Facebook Places users, specifically, fit into the the Palms' target audience for hotel guests? Is there a specific segment of Facebook users that you're trying to reach with Deals?
There is synergy between guests of Palms Casino Resort and Facebook users. We feel it’s a natural fit for both audiences and we’d like to extend this opportunity to users who stay here.
The Palms is offering a room upgrade or an extra night's stay for its Facebook Deal. What's the benefit of taking on the expense?
First, it's not unheard of for hotels to offer a “Third Night Free” promotion, especially during the summer or winter in Vegas. We believe these users are valuable enough to offer such a robust incentive. With an extra night stay, guests are encouraged to spend additional dollars [on room service, drinks at the various bars, etc.] that they wouldn't have if they'd left as originally planned. That's beyond the tremendous exposure participation in this program delivers for us.
Do you have any advice for other companies that might be thinking about doing a Facebook Places Deal? Are there verticals that you think it might not work for?
Most companies will find Facebook's platform useful, as it's user-friendly, and there are four categories of deals. In the end, there needs to be an obvious benefit to the user for the action that fits the business. For example, some businesses opted for charity. Others, like ours, look to directly generate more traffic to our business by giving something back to our customers.