ShopKick is Next Big Thing in Local Social Commerce

Remember this name: ShopKick. You’re about to starting seeing a lot more of it. ShopKick is a new mobile application that tracks and rewards customers with points (called KickBucks) just for walking into your store. Think of it as a new digital way to easily drive foot traffic into your location. 

Customers earn additional points for picking up and scanning the barcode on an item in your store using their smartphone’s camera and, of course, for making purchases. The more involved with your store a shopper becomes, the more KickBucks they can earn. It’s like a digital version of the old-style repeat-purchase punch card, but with vastly more capabilities.  

KickBucks can then be redeemed for rewards such as discounts, gift cards, merchandise and charitable donations. Consumers simply download the free ShopKick app to their smartphones and start looking for nearby stores and restaurants offering “Kicks Rewards.” The ShopKick FAQ section helps explain in detail how the app works from the customer’s point of view.

ShopKick is amazingly simple and – apparently – effective as well.  Several big retailers such as Crate & Barrel, American Eagle, Macy’s and Target began experimenting with it in 2010.  Best Buy, the electronics big box giant, likes it so much it recently rolled it out nationwide.

The big news, however, is that ShopKick has just launched a pilot program to begin offering the service to local businesses in 11 cities and metro areas, including New York, Los Angeles, San Francisco, Chicago, Dallas, Houston, Austin, Seattle, Washington, DC, Detroit and New Orleans. Initially, 1,000 local businesses will be selected to participate and will get the service free for a year.

While any local business can apply for free, the preferred types of businesses for the experimental program are coffee shops, yogurt shops, bakeries, family restaurants and local clothing boutiques.  Other factors in your favor include these:  You have less than 20 locations are located in a shopping area, have a good Yelp rating and a distinctive store design.  Citibank is picking up the tab for the pilot program, and clearly sees big things ahead for ShopKick. Citi officials see it as an exciting new retail program that local businesses can use to help them connect with customers in their communities.  

A New Local Mobile Frontier

The huge growth of mobile commerce via smart phones is fueling Palo Alto, CA-based ShopKick and will change how customers interact with a local business. Already, about 20% of consumers use their mobile phones to check prices, according to a recent Booz & Company study. As smartphone penetration more than doubles over the next 3-4 years, that figure is expected to soar as well.  Booz & Co. also predicts that purchases made directly from mobile devices will more than triple by 2014.

It creates a new personalized experience for customers to tap into when shopping at local merchants.  And according to BIA Kelsey, which tracks local marketing trends, ShopKick is already available in 2,500 big retailer locations and 160 malls nationwide.

In short, ShopKick is a new retail technology that – for the first time – starts to meld the previously separate worlds of selling either online or offline.  Armed with their app-equipped mobile devices, customers can now exist simultaneously in both the digital and physical shopping worlds.

ShopKick, founded in 2009, has high-powered venture capital funding, and counts Kleiner Perkins, Greylock Partners and LinkedIn founder Reid Hoffman among its backers.

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About the Author: Daniel Kehrer, Founder and Chief Content Officer of BizBest Media, is a senior-level leader in digital media, content development and online marketing with special expertise in startups, SMB, social media and generating traffic, engagement and leads. He holds an MBA from UCLA/Anderson and is a passionate entrepreneur (started 4 businesses), syndicated columnist, blogger, thought leader and author of 7 business and financial books.

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