RMM Briefing: Shopkick – ‘Foursquare for shopping’

What is it?

Another development in the location-based service world, and thus another location-based technology briefing. Shopkick is a newly launched iPhone app, which, lazily summarised, is the ‘Foursquare for shopping’. This is, however, a slightly misleading description as Foursquare functions around user tips, comments and interaction – none of which feature in Shopkick.

Nonetheless, Business Insider predicts big things for this app which rewards users not only for check-ins but also for scanning barcodes of particular products on promotion. Carrying out these activites gives the user points, which they can spend on anything from charity donations to…the new Sex and the City DVD.

How does it work?

Initially following the basic mechanism of Foursquare, Shopkick lets users download the app and start checking in to locations – specifically shops which are already signed  up. A key functionality is that this app can run in the background – i.e. users don’t actively check-in, but the app automatically detects where you are. Currently, this only really works in the US, with American Eagle Outfitters, Macy’s and other shopping centres in America having partnered with Shopkick.

You’re rewarded through a points or ‘kickbucks’ system when you walk into a shop, and when you scan product barcodes. (This is limited to particular items in the shop, so don’t envisage a world of Shopkick zombies, mechanically scaning everything around them for kickbucks…). You can then redeem these kickbucks for certain items offered by Shopkick – like charity donations, DVDs, Facebook Credits or giftcards. They’re also open to suggestions on rewards.

And that’s essentially it. There are questions – such as how Shopkick will know where you are once it partners with more stores. Currently participating stores have a wireless transmitter installed which interact with iPhones to verify your location – but this surely can’t be a long-term option, across all retailers. Additionally, we think there are few social features in Shopkick which would move location-based services significantly forward as social media platforms.

Who will use this?

As we’ve said, this is not an app friendly to multiple audience groups and is targeted primarily at consumers. We’ve defined an audience and some examples of how they might use Shopkick (or similar apps) by adapting Forrester’s generic social technographics.

Conversationalists

• Will enable Shopkick to post check-in locations to Twitter and Facebook.
• May have conversations about Shopkick check-ins on other social media platforms with others in their network.

Collectors

• Will be the heaviest Shopkick user, with particular focus on building up redeemable kickbucks.
• Will participate in all activities required to collect kickbucks, e.g. checking-in and scanning.
• May change habits to target shops which have partnered with Shopkick or similar platforms to take full advantage of temporary offers and discounts.

Joiners

• Will be a medium-level Shopkick user, participating in the most low-entry activities to receive as many discounts and offers as possible.
• Will probably not change habits to target shops which have partnered with Shopkick or similar apps.

Industry thought: shopping centres

• How individual retailers will detect check-ins is a key snag. Foursquare relies on users’ GPS signals, which mean you could check-in from across the road since it’s not particularly accurate. But Foursquare’s additional incentive is that it’s a social platform – there’s no point lying to your friends about your location. Shopkick has no such incentive, and the additional problem of users actively having the incentive to lie in order to receive kickbucks and discounts.
• To solve this potentially expensive problem, partnerships with mainstream department stores and major shopping centres look like the most lucrative for Shopkick. If relatively few detecting gadgets could be installed in shopping centres, users still reap the benefits of discounts from potentially hundreds of shops.