The 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."
Another 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."
Despite 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.