Imagine walking into your favorite store (from Macy’s to Target), and getting rewarded just for walking inside. It sounds like one of those despised too-good-to-be-true scenarios, right? Well, over 7.5 million Shopkick users have done just that. With over 150 brands and 15 retail partners under its ever-growing belt, Shopkick rewards consumers with “kicks” for walking into stores, scanning items, and making purchases with their synced credit/debit card. A kick, is kind of like a rewards point. You redeem kicks for gift cards and specialty items, “from a Starbucks gift card (1,250 kicks), to an iPad, (125,000 kicks)” says Forbes.com.
Shopkick’s site claims that its app “drive[s] incremental foot traffic to [its] partner stores… supports brand equity and competitive differentiation…attract[s] high-value demographics… [and allows for the development of] long-term relationships with consumers.” As for the brands that back it, Shopkick states that it helps out these brands by “expos[ing] consumers to new products and brand extensions… driv[ing] consumers to products on the shelf, and garner[ing] consumer insights at the moment of product engagement.”
According to Nielsen, Shopkick is the number one shopping app in usage (with an average of 2 hours and 37 minutes), as well as the number four app in overall active reach with ten percent (right behind major power-players like Amazon, eBay, and Groupon).
But how does Shopkick generate revenue? Well, whenever a “Shopkicker” uses the app at a Shopkick-sponsored store, Shopkick receives a fee. Last year, Shopkick “grossed an estimated 45% on revenue of $26.3 million… [and] sales have doubled every year,” according to Forbes.
And, what retailers and brands love most about Shopkick? It gets customers shopping. “The conversion rates are very high… anywhere from 20% to 95%. That’s the opposite of online shopping, where conversion rates are terrible,” Shopkick co-founder and CEO Cyriac Roeding told Forbes.
Will Shopkick change the way America, nay, the world, shops? Roeding has a feeling it just might. “[Shopping] will be almost like a minivaction,” he said to Forbes.
Now that would be an app worth downloading.
Photo Via Shopkick