Shopkick pivots, offers rewards for mobile shopping on Boxed, eBay

Brief:

Shopkick, a shopping rewards app, is now offering rewards to consumers who browse or buy products on a smartphone, according to a statement. This marks an extension of its service that rewards shoppers who walk into a store with the app on their smartphone with free gift cards. In-store shoppers can also earn rewards for interacting with products at the aisle and purchasing at the register.
The mobile rewards, or kicks, are aimed at three kinds of consumer behavior: visiting a mobile retail partner, browsing mobile offers and products and making purchases. Shopkick’s reward partners include Boxed, eBay, Groupon and Spring.
Shopkick’s mobile shopping service is powered by Button, a mobile partnership platform that is designed to drive commerce and customer acquisition. Button’s technology gives shoppers a seamless navigation from Shopkick to the mobile experience of a retailer.

Insight:

Shopkick was an early entry into location-based marketing, leveraging mobile technology to recognize shoppers when they entered a store and could be engaged by retailers and brands. The company has partnered with Macy's, American Eagle Outfitters and other retailers. However, with department stores and specialty retailers currently undergoing a significant downsizing in the number of stores they operate, Shopkick is likely eyeing mobile shopping as its next opportunity.

A recent eMarketer report forecasts smartphone retail mcommerce sales will increase more than 50% this year for a total of $102.14 billion.

Shopkick says its tests for mobile rewards have produced positive results for retailers. The company found that 79% of its users would visit new mobile retailers to get reward points, 78% planned to use Shopkick more frequently to earn rewards and 67% would consider increasing their purchases for more rewards.

Shopkick’s entry into mobile shopping follows its April launch of Shopkick Grocery to encourage customers of Kroger, Publix, Safeway, Target and Walmart to patronize stores with opportunities to earn free gifts cards while grocery shopping. Shopkick Grocery is available in more than 37,000 stores nationwide.