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Location-Based Shopping App Shopkick Now 3 Million Users Strong; 1B Deals Viewed

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Shopkick, an innovative geo-coupon system that is backed by Kleiner Perkins, Greylock, SV Angel and others, is debuting a number of momentum numbers today. The startup’s service now has 3 million active users, up from 2.3 million active users in September.

Here’s how Shopkicks works. Instead of checking in, as you would with a geo app like Foursquare, Shopkick automatically recognizes when someone with the free Android or iPhone app on their phone walks into a store. Once a Shopkick Signal is detected, the app delivers reward points called “kicks” to the user for walking into a retail store, trying on clothes, scanning a barcode and other actions.

Kickbucks can then be redeemed across all partner stores for gift card rewards or for Facebook Credits. User can also receive special discounts on specific products at partners stores like Macy’s, Best Buy or Target. National retail partners in the loyalty program include Target, Best Buy, Macy’s, Crate & Barrel, Old Navy, American Eagle, Sports Authority, Toys R Us, Simon Malls and others, and 40 brands (P&G, Unilever, Kraft, Colgate, Clorox, Disney, HP, Intel). For example, one of the partner retailers is estimating $50 million in measurable incremental revenue as a result of the Shopkick mobile app.

To date, Shopkick has seen 1 billion in-app deals and offers viewed, and as of December, saw 5 million walk-ins to partner stores, doubling in four months. The app has seen 10 million product scans, up from 7 million in August 2011 and 3 million in February 2011.

During the 2011 holiday shopping season, shopkick users interacted with stores through the app more than 3.1 million times per day on average, up from just over 1 million in August 2011. Sixty-four percent of all shopkick users are now women and the average shopkick user is 30 years old.

As we’ve written in the past, Shopkick’s technology is helping physical retailers drive traffic and conversions in the store, which has been a challenge of late.