BRIEF

Supermarkets look to attract shoppers with new Shopkick Grocery app

AUTHOR

Keith Loria@Freelancekeith

PUBLISHED

April 12, 2017

Dive Brief:

• Shopkick, a shopping rewards app, launched a new app feature called Shopkick Grocery, according to Tech Crunch. 
• Shopkick Grocery will reward consumers with gift cards when they engage in branded content, either by scanning barcodes on products, making purchases, or viewing promotional lookbooks and videos. The app will work in more than 37,00 U.S. stores, including Kroger, Publix, Safeway, Target and Wal-Mart.
• Unlike competitors such as Snap by Groupon and Ibotta, Shopkick Grocery also will include recipes featuring products.

Dive Insight:

Shopkick’s ranking in the App Store isn’t very high, currently coming in at No. 1233, but the company’s entry into the grocery rewards space is aimed to boost that number. Shopkick Grocery will be one of many apps competing to replace a retailer’s circular while rewarding customers for engaging with branded media and other shopping experiences.

The rate of consumer engagement with digital coupons shows shoppers are willing to commit time and effort in order to capture savings. An Inmar study revealed that of 2.2 billion coupons redeemed by shoppers last year, those loaded directly to retailer loyalty accounts increased 20% between 2015 and 2016.

A study by Quotient Technology Inc. also found that digital coupon users are more likely to try new items and then buy those items regularly. Shopkick Grocery will be aligned with nearly three dozen brands, including Barilla, Bayer, Clorox, Mentos, Purina, Ragu, Ben & Jerry’s, Coty, Dole, Ruffino Wines, Sargento and Starbucks. That's a solid roster of products, and with more to be added in the months ahead, Shopkick is off to a good start.

Consumers who utilize the app will earn rewards known as “kicks” that can be exchanged for free gift cards at supermarkets as well as other retailers like TJ Maxx and Starbucks. For grocery stores, which are dealing with growing competition from Amazon and kit-delivery services like Blue Apron, anything they can do to lure customers to their stores rather than online will be to their advantage. Shopkick is something sure to draw a shopper’s attention.