ISSUE NO. 65 06/06/12
TARGET ROLLS OUT SHOPKICK CHAIN-WIDE

Target joins retailers like American Eagle Outfitters, Best Buy, Crate and Barrel, Macy's and Old Navy by offering the shopkick app. After Target tested the location-based, in-store shopping app in seven cities and received "rave reviews," the mass merchandiser has decided to make shopkick benefits available to shoppers in all of its 1,764 stores nationwide, making it the country's largest shopkick retailer. "Target recognizes that our guests are tech-savvy shoppers," said Molly Snyder, a spokeswoman for Target. Explaining that mobile is "definitely a focus" for Target, Snyder also said, "We really are making sure that we're connecting with our consumers no matter how they want to shop Target."

The shopkick app uses smartphones to make in-store shopping a more interactive experience. Once shoppers download the free app, they are able to earn points or "kicks" just for entering partner stores with additional rewards available for scanning barcodes or trying on clothes. "Kickbucks" can be redeemed for gift cards at participating retailers, Facebook credits, iTunes downloads or even charity donations. In addition, shoppers can also get special discounts on products offered by leading brands like P&G, Unilever, Kraft, Colgate, Clorox, Disney, HP and Intel.

Shopkick founder Cyriac Roeding talked to Techcrunch about measuring the impact of the app, "Conversion rates of walk-ins to sales can be measured directly by counting specific shopkick offers in the basket at retailers, by rewards for purchases through POS integrations, and conversion rates of product scans to product sales can be measured through in-app questionnaires and POS integrations." Shopkick has 3 million active users and has reported garnering $110 million in revenue for retailers and brands in 2011.

WHAT DOES IT MEAN TO ME?

Brick-and-mortar retailers are looking for new and better ways to protect against the inroads that ecommerce retailers are making into their shopper bases. By helping drive traffic to physical stores, shopkick can be an effective tool to guard market share but, interestingly, the app doesn't protect against the showrooming trend. It wasn't too long ago that Target wrote letters to suppliers asking for exclusive products as a way to avoid shoppers checking products out in-store but then leaving empty-handed and ordering online. Since shopkick rewards shoppers whether they make a purchase or not, Target won't necessarily see a direct reduction in showrooming. It's here that brands can strengthen their partnership with Target and other Shopkick retailers by developing exclusive offers in conjunction with the shopkick app. If your brand has not yet partnered with the app, it might be time to consider doing so.

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READ MORE:

"Target Bolsters In-Store Sales Via Location-Based Rewards App," Mobile Commerce Daily, 5/25/12 www.mobilecommercedaily.com/2012/05/25/target-bolsters-in-store-sales-via-location-based-rewards-app

"Shopkick: We Helped Drive More Than $110M in 2011 Revenue for Brands and Brick And Mortar Retailers," Techcrunch, 1/31/12 techcrunch.com/2012/01/31/shopkick-we-helped-drive-more-than-110m-in-2011-revenue-for-brands-and-brick-and-mortar-retailers/

"Target Partners with Shopkick App," Businesweek, 5/23/12 www.businessweek.com/ap/2012-05/D9UUGBCG1.htm

 
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TAGS:
Shopkick, smart phones, Target stores


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