Ran across this idea today, and am contemplating doing something with this. I started using Foursquare while on my cafe tour in Seattle, and have been playing with it a little bit since. Never occurred to me to look into what sort of commercial possibilities there were until today.
Here's a snippet from their "For Businesses" page:
"For example, foursquare can tell you how many times a customer has been to your venue or the frequency of their visits. Many venues are now using this data to reward their most loyal customers with freebies or discounts.
(and you'd be surprised how effective a little friendly competition - over mayorship, over free fries! - can be at driving people back to your venue)"
Here's the full site.
Anyone doing this? What has your experience been? Useful, or still not widely-used enough?
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