Fitness app Runkeeper has begun selling running apparel and has plans to use the data produced by its 40 million users to offer personalized offers and incentives.
"You wouldn't necessarily think of Runkeeper as a threat to a physical retailer," CEO and founder Jason Jacobs told Digiday. "But our user base is so large and our data is so rich that we think there is a tremendous opportunity in e-commerce."
Runkeeper is offering 10 different running tops priced from $24 to $40. In a digital twist, users can unlock offers by reaching personal fitness goals or completing challenges.
Between 5 and 7 percent of people who unlock merchandise then buy the item, according to Runkeeper, which told Digiday the conversion rate is double the industry average.
Existing retailers are currently partnering with fitness trackers and apps to create more robust loyalty programs. Under Armour purchased the MapMyFitness app in November 2013 for $150 million, and created the Under Armour Connected Fitness program, which now boasts 150 million members. In September, it created a partnership with Sports Authority that lets loyalty program members earn points by completing activities within the app.
-See this Digiday story
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