Shopkick Checks In
Launched in August 2010, Shopkick, the location-based shopping
app that rewards shoppers simply for visiting stores, has been downloaded
750,000 times, quietly claiming to have become the leader in product scans
for rewards. Users have scanned more than 3 million products at 250,000 locations
nationwide, from partner brands Kraft Foods, Procter & Gamble, Unilever
Shopkick app, combined with the first walk-in location technology, the Shopkick
signal — an inaudible sound emitted from a patent-pending device
located with each participating retailer — verifies the user is in-store,
and then awards kickbucks. Kickbucks, earned by scanning partner brand products,
can be redeemed for in-store gift cards, song downloads, movie tickets, hotel
vouchers, Facebook Credits to play games online, donations to 30 different
causes and charities, and more.
Shopkick said it has more than 1,100 partner
retail locations, including select Target, Best Buy, Macy’s, American Eagle
Outfitters, Sports Authority, Crate and Barrel, Wet Seal, and Simon Property
Group mall properties.
“We have always wanted to reward potential consumers for engaging with
our products at grocery and mass merchandise stores,” said Ed Kaczmarek,
director of innovation at Kraft Foods, in a statement. “Shopkick’s scan
rewards do just that. We also increase consumer discovery across aisles with
multiple Kraft Foods brands they would not have sought out otherwise, further
deepening their interaction with our products. We feel Shopkick is the clear
mobile innovation leader and that is why we have partnered with them.”
unique feature is that the Shopkick technology ensures shoppers getting
the awards are physically in the store. Most other mobile applications rely
on GPS technology that has an error radius of 50 to 1,000 yards on mobile phones.
With Shopkick, a small box is plugged into a power outlet inside the store
with no internet or Wi-Fi required, ensuring the customer being rewarded is
actually in the store.
In an interview with blog.shop.org, Shopkick CEO Cyriac
Roeding expects the uses will go well beyond check-in rewards.
“Imagine what is possible if there is an ‘arc of interaction’ with
shoppers — all the way from when they scan circulars, to purchase — through
the Shopkick app. It can be used to provide rewards, personally welcome shoppers,
and deliver custom offers, relevant product information and more. Engagement
with current and new customers will be taken to a completely new level.”
Shopkick’s apparent success, a survey of 437 smartphone users conducted in
February 2011 from digital marketing agency White Horse found slow
adoption of location-based technologies. Of those surveyed, more than 60 percent
of active smartphone users don’t use location-based services.
Among those non-users, 70 percent aren’t aware of the apps or don’t
fully understand what they do.
- Kickbucks Awarded for Scanning Kraft Foods, P&G, Unilever, and HP Products
Nationwide – PRnewswire.com
- The mobile impact: Shopkick founder talks foot traffic, analytics and consumer
behavior – Shop.org
- New Survey Probes Smartphone Users’ Apathy toward Geolocation Services – prweb.com
Discussion Questions: What types of rewards make most sense to drive retail check-ins? What aspects of these services offer the greatest benefit to brands and retailers? What may be inhibiting consumer adoption of location-based mobile services?