Two months ago, I was a Foursquare addict. From the G train shuttle bus to the Duane Reade to the 88th police precinct, I checked in everywhere. However, because of the lack of real-world benefits and limitations in its game mechanics, I seldom check in to places anymore.

While it is fun exploring cities through points, badges and mayorships, the thrill eventually wears off. The problem with Foursquare, as Sebastian Deterding highlights, is that,  “Once you understand the basic mechanic, there’s nothing new to learn and master.” Points and badges don’t represent much more than bragging rights and collector’s items – with a few exceptions, they can’t be exchanged for discounts, promotions or tools to compete in the game.

Below are a few quick ideas on how Foursquare could keep me from losing interest. The ideas discussed below wouldn’t necessarily work together, but present different paths Foursquare could take depending on their end goal.

1. Deepening Relationships: Loyalty Card

User activity could be retained once more businesses – both large and small – offer discounts, rewards and unique services for customers who frequently check in, come with friends, add tips and adopt certain desired behaviors. Foursquare has already set up partnerships with local and corporate businesses, like Starbucks, Tasti D-Lite and Pepsi, to reward users for their loyalty to a particular place. However, with other mobile social-mapping services, like Loopt Star, gaining more leverage in the loyalty rewards space, Foursquare needs to develop more robust partnerships with businesses in order to stay competitive within the emerging crowd of location-based social networks.

2. Transforming the Business Model: Credit Card

What if you could use Foursquare like a credit card? There are several different ways this could work. If Foursquare developed more robust partnerships with businesses, they could model their system off of frequent flyer credit card programs to reward loyal users. Ian Bogost writes,“Frequent flyer programs encourage repeat patronage of an airline by offering social status, improved service and benefits, and free trips over time.”

In addition to offering credit to make purchases, Foursquare could encourage active user involvement by allowing points to be exchanged for store credit and free promotions at select businesses. Perhaps a customer could accumulate more points if they simultaneously checked in and purchased something at a business. Mayorships and badges could hold greater social value by allowing users to gain better access to elite status, service upgrades and exclusive deals.

As Foursquare revealed yesterday at The Mashable Media Summit, they’ve began experimenting in adding greater real-world value to its badges because of badge fatigue. Coined “digital candy” by founder Dennis Crowley, certain badges will provide users with access to special treatment at select venues and events. This concept is still in its infancy, but has great potential to maintain active user involvement. The key is encouraging users to continue to adopt certain behaviors through the appropriate rewards and incentives.

3. Changing the Game Mechanic: Tiered System of Titles

“The mayorship concept severely limits the service’s ability to construct a sense of usable loyalty,” writes Ian Bogost, “Imagine if each airport offered only one flyer good service.” Instead of conferring one special title to one customer, what if businesses offered multiple titles? In addition to mayor, what if you had deputy mayors, council members and representatives?

Under this system, customers who were in the top percentile of users who had checked in to a place could also be rewarded for their loyalty to a business. Their number of check-ins would determine which title they receive: the more check-ins, the more prestigious the title. Mayorships could still maintain their mono-exclusivity, but the junior titles, like Council Member and Representative, would be conferred to multiple people. Title would determine what discounts and offers a user had access to.

In fact, competitor Yelp recently rolled out more mobile location features to their app, including a tiered system of titles similar to the one described above. Users can become Yelp “royalty” by checking in to the same venues during a set time period or neighborhood.  Users can become dukes, barons, and kings based on their number of check-ins at businesses, neighborhoods and in the city.

A tiered system of titles could encourage more user involvement by providing more incentive for people to check in every time they visit a venue. By altering the game mechanic in this way a coffee shop or restaurant could provide better service- not to just one loyal customer, but all.

These are just a few ideas Foursquare could implement to encourage active user involvement. Why do you think interest is declining? Have you lost interest? What could make Fourquare more fun and useful?