Best Buy taps promotions into smartphones

Best Buy is testing an innovative location-based tool to connect with customers via smartphones. The company has started to use a tool developed by Shopkick, a California-based start-up. According to FT.com, customers who activate the Shopkick application on their phones will automatically receive “kickbucks” credits just for entering the store that can be traded for benefits including gift cards, computer gaming credits or music downloads from Best Buy’s Napster service. They will also receive special in-store offers from the retailer.

Best Buy will eventually also be able to use the system to send participants in its loyalty scheme promotional offers that can be customized to reflect their shopping history and interests.

According to FT.com‘s Jonathan Birchall, in-store mobile shopping applications are likely to become increasingly important to retailers as they seek to close deals with shoppers equipped with smartphones that can search and compare prices at rival stores and online.