Shopkick Extends Retail Reach With Target Deal

A few weeks ago, we wrote about a briefing with Shopkick’s product director Evan Tana. The upcoming ILM:10 conference speaker explained the strategy to build a shopping utility around check-ins and customer engagement for retail partners like Best Buy.

Another thing we discussed off the record was the company’s talks to extend this reach by bringing the same capability to Target. Today, it announced this very partnership including 242 stores Chicago, L.A., Dallas, Miami, New York City and San Francisco.

Similar to its relationships with Best Buy, American Eagle and Macy’s, it will integrate its geolocation coupon/check-in system throughout these Target locations. This essentially unlocks coupons and “kickbucks” for users of Shopkick’s mobile apps.

As we’ve written, one of the things that sets Shopkick apart is that it cuts down on the check-in fatigue that is setting in across the mobile geolocation space. Check-ins happen automatically when on-site hardware detects app users who walk in the door.

Kickbucks are automatically transferred just for walking in the door, but so are activities like scanning UPC barcodes throughout the store. Kickbucks can then be used for store discounts at the register or charitable donations.

Target, for example, will extend offers at the onset to food, cleaning supplies, electronics and toys. Future moves will likely involve more product categories and different phases of implementation to Target’s 1,752 U.S. locations.

Though this deep retail strategy raises a market penetration barrier for Shopkick in forming individual deals (and facilitating on-site hardware), it ultimately benefits from the cross-promotional muscle of these retail giants.