Google's Patent - Targeting customers who invite other customers to the business

Here's an interesting one you've probably seen or taken advantage of as a consumer. In 2013, Google patented the system and method of rewarding customers who "check in" on social media and invite other users to the business, usually with a coupon of some sort when the other user enters into the business. The technology of using GPS-enabled smartphones make this a possibility, obviously. See the patent details and description.

What type of patent is this (utility or design)? What is the application process for a patent? Have you participated in this type interaction with a business?