After recently announcing the milestone of 3 million active users, geo-coupon system a Shopkick is revealing that its mobile app helped drive more than $110 million in-store revenue for partner retailers and brands in 2011 in its first full year operating the app.
Shopkick, which is backed by Kleiner Perkins, Greylock, SV Angel and others, provides an in-store, location-based mobile shopping platform, 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).
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.
So how does Shopkick measure the revenue contributed to retailers and brands. Founder Cyriac Roeding tells us” 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.
In 2011, Shopkick built these measurement approaches together with its retail and brand partners, to make it a more trackable and performance-based marketing platform in the physical retail world. Shopkick’s technology is clearly helping physical retailers drive traffic and conversions in the store, which has been a challenge of late.
shopkick was founded in June 2009 by Cyriac Roeding, Jeff Sellinger, Aaron Emigh, and is funded by Kleiner Perkins’ iFund, Greylock Partners and Reid Hoffman, founder of LinkedIn, and investor in Facebook and Zynga, and Ron Conway. shopkick bridges the worlds of mobile and physical retail. In August 2010, shopkick launched the first mobile application that hands consumers rewards and exclusive deals at shopkick’s national retail partners simply for walking into thousands of stores and malls. shopkick created...