Shopkick vs. Checkpoints for Users and Stores
Shopkick and Checkpoints are both apps that give customers rewards for interacting with products. But what are the differences and similarities and which one is better?
First let’s talk about what both apps have in common: Both apps have a system that allows customers to gather credits and redeem those for rewards. The purpose of both apps is identical accordingly: direct the customer’s attention to certain products and bring customers into the store. Therefore, both shopkick and Checkpoints give you credits for scanning product barcodes. That’s how far the similarities go.
How are they different?
In many other regards, shopkick and Checkpoints are very different. The focus of shopkick seems to be more on the in-store experience, whereas Checkpoints’ focus seems to be more on the user as a consumer in general. Checkpoints for example gives coins to users for a broad variety of things. You can get coins for downloading suggested apps, scanning items at home, liking the app on Facebook, or searching on yahoo. Moreover, Checkpoints has 2 games integrated that allow to gamble for coins. However, the amount of coins that can be earned for this kind of activities are relatively small and normally around 1 or 2 coins. This number is relatively low considering that a $1 gift card for Home Depot costs 300 coins.
Why is shopkick better for customers?
Shopkick on the other hand, does not over those low credit activities. Instead you can get kicks for walking into a store. Shopkick has an electronic device installed in each participating store’s entrance area that sends out an inaudible sound signal. This signal is recorded by the shopkick app. That allows shopkick to register when a customer is walking into a store. The amount of kicks you get for a walk in are relatively high and range between 50 and 200. This seems to be more attractive to customers, especially because the value of 1 kick is comparable, even slightly higher, than 1 coin: a 2$ gift card for Best Buy costs 500 kicks. That means 250 shopkick kicks are worth $1 compared to 300 Checkpoints coins for $1. In other words, you might have to download 150 apps to get a $1 gift card from Checkpoints, but you might only need to walk into 3 stores in order to get a $2 gift card from shopkick.
Why is shopkick better for stores?
The desire for a Checkpoint user to walk into a store is much lower than the desire for a shopkick user. A shopkick user gets large amounts of kicks for walking into the store, a Checkpoint user doesn’t. This is very important for stores. The shopping conversion rate for retail stores can be as high as 50%. That means, that every other customer that walks into a store actually buys something. Even customers that entered the store only for getting kicks and that had no initial intention to buy anything, might find something they need once they entered the store.
Concluding, the benefits for users as well as for participating stores seem to be higher for shopkick than for Checkpoints. This is mostly due to the thousands of audio signaling devices that shopkick has installed in participating stores. In regard to the competition, this investments seems to pay out for shopkick the users and the stores.