Consumers love to save on everyday purchases and in 2010, stores and technology combined to offer a new way to do that in the form of location-based discounts, which reward shoppers for coming into a store. The use of location-based rewards is still pretty new, but according to Sports Authority, consumers are quick to respond to an increase in rewards.
These savings or rewards are available from several services including Foursquare, GoWalla and most recently Shopkick; all of which give consumers something in exchange for just walking into a store. Shopkick is the first to use a type of audio check-in that verifies that the user is in the store based on their iPhone or Android device.The Shopkick service has been up and running for four months and Sports Authority has seen its customers respond to increased rewards.
Jeff Schumacher, Chief Marketing Officer at Sports Authority, says in a press release that the company had, "50% to 70% more shoppers walk into the store with Shopkick when we increased the rewards for walking in." adding that, "There is a direct and measurable correlation."
Retailers are drawn to Shopkick because it's in-store audio device helps retailers measure how shoppers respond to rewards and offers. While the system allows retailers to track how shoppers respond, Shopkick CEO Cyriac Roeding told WalletPop in August that Shopkick doesn't allow the retailer to track specific users.
The rewards delivered by ShopKick are in the form of kickbucks, a virtual currency that can be converted into discounts and gift certificates at participating retail partners like Best Buy, Sports Authority and others. The rewards can also be turned into song downloads, movie tickets, Facebook credits or donated to 30 charitable causes.
This is good news for shoppers who like to be rewarded for going into a store while window shopping. There is evidence that these discounts and rewards are driving traffic, which means we are more likely to see retailers jumping on board and delivering more discounts and rewards. Right now, you can earn extra rewards from Shopkick from the Walk In For Your Chance to Win contest just by stopping into a Shopkick-enabled retailer before Dec. 24th.
Consumers Responding to In-Store Rewards