Just four months after kicking off a partnership with Sports Authority, Shopkick is enjoying early success with its LBS rewards app that promises to drive foot traffic into retail stores.
As an inaugural partner, Sports Authority put Shopkick to the test by trying different rewards levels to see what worked. The app works by detecting a “Shopkick Signal” located in each participating store to deliver rewards known as “kickbucks” to each user. Kickbucks can be collected and redeemed across all partner stores for things like in-store gift card rewards, discounts at top retail stores, song downloads, movie tickets, hotel vouchers, Facebook Credits to play games online, donations to 30 different causes and charities and more.
Sports Authority doubled and even tripled the number of “Kickbucks” awarded to shoppers simply for walking into participating stores. The kickbucks – the so-called “cross-retailer currency of shopkick” – did as intended: as the reward amount increased, more consumers walked into the store with the shopkick app, and in some cases up to seventy percent more.
“Sports Authority is committed to offering our customers the best value and reaching them with the latest technology. shopkick provides a unique technology that makes location-based rewards economically feasible for the first time, has unparalleled team expertise, and with the list of blue chip retailers we joined as launch partners, we were convinced to experiment with the first location-based shopping app in the market,” said Jeff Schumacher, Chief Marketing Officer of Sports Authority. “We had 50% to 70% more shoppers walk into the store with shopkick when we increased the rewards for walking in. There is a direct and measurable correlation. shopkick’s model works.”
For each Sports Authority promotion, they increased kickbucks awarded (2x or 3x) to see how higher rewards impact walk-ins. Walk-ins measure the actual presence of shoppers in a participating store, vs. the proximity-based measurement delivered by GPS-based check-ins. With each promotion, the impact on walk-ins increased dramatically – even as baseline check-ins grew organically – delivering 50 to 70 percent increase in walk-ins.
I’ve been intrigued with Shopkick since its debut, mostly because of the company’s unique take on location-based rewards and it’s emphasis on physical retail stores. Though it’s still early, these results are interesting, even though it’s too early to judge long-term success. It should get interesting as more and more retailers sign on.