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App IPhone

American retailers embrace Shopkick app

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By The Drum Team, Editorial

August 17, 2010 | 2 min read

American retailers are getting to grips with a new smartphone app that tracks and offers promotions to shoppers in real time as they progress from the changing room to the till.

Shopkick, which is supported by major retailers such as Macy’s and Best Buy, offers users points known as ‘Kickbucks’ for completing activities such as entering a store, picking up specific items and trying on clothing.

It works by displaying a map of participating stores in proximity to the user together with how many points are up for grabs. “Checking in” or window shopping a store for instance nets the participant two points but by actually crossing the threshold and entering the store 35 points can be had.

The phone uses GPS to track participants and can pinpoint when a user enters the store by picking up an inaudible sound transmitted by the shops on its microphone.

In return for being given the run around by their phones shoppers can exchange their points for gift cards, music downloads and credits toward Facebook games, with 1,250 kickbucks currently valued at $5.

Retailers however stand to benefit enormously from the venture, acquiring an extraordinary level of detail on individual shopper’s habits and the ability to influence customer behaviour.

Shopkick meanwhile earns a small fee for every kickbuck a customer earns and a percentage of the price for every item purchased using the app.

If successful the scheme will be extended to take into account peoples sex, age, home and buying patterns – a prospect which horrifies privacy campaigners.

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