 Hi, I'm Syriac Ruding from Shopkick. We asked ourselves a simple question. What is truly mobile about a cell phone? What is really different about a smartphone as compared to any other platform that exists in the media world? And the answer is very simple. It's the cell phone being the only interactive medium that you carry with you in a non-interactive physical environment. The only interactive medium you have with you in a non-interactive physical environment. That's really interesting, because it could suddenly enable us to put a almost like a digital overlay on top of the real world and make it an interactive experience. And if you think about the real world, where is that particularly interesting? Where would you like more information when you're out? Where do you constantly feel like nobody knows you? Nobody addresses you by name? Nobody actually even treats you like a human being? You're almost like a walking number? Yes, exactly when you're out shopping at stores. 100 years ago, if you had gone shopping, they would have welcomed you by name by walking in and said, hi, Susie, how are you today? And by the way, how is your husband? And did you like the steak we sold you last week? And nowadays, at what time do they find out you're at the store? Exactly, when you've already paid with your credit card. You've swiped it. And that's when they look at you and say, hi, how are you today? And you look back and you say, I'm doing great. And then the answer is, OK, that's good. Bye. And we thought that can't be the future of shopping. It can't be that after all this time, we basically went backwards. What if we took all this learning from the last 100 years and tried to replicate that personal experience, a more entertaining one, a more rewarding one, and a more personal experience into the real world in our large, large physical shopping world today? And the smartphone is the only one, the only medium that can make that happen. So rather than go backwards in time, we go forwards by using technology. And that's what Shopkick does. Shopkick basically uses the smartphone to make your physical shopping experience a better one. How do we do that? Well, we asked ourselves a simple question. How could we not only benefit the consumer, but also the retail industry? And we asked ourselves, what's the biggest problem? So we imagined taking a trip through America and for that matter, the whole world, and talk to every store owner, what's your biggest challenge? And we thought, what if they had to all agree on the same challenge? Which one would it be? And the answer was always the same. It's called foot traffic, getting people into the door of the store. Why is that so interesting? Because the conversion rates in the physical retail world are way better than in the online world. In the online world, conversion rates from going to a site to actually buying something is only 0.5% to 3%. In the real world, it's 20% to 95%. It's 20% in fashion, 50% in electronics, and 95% in groceries. So in other words, if you could only get them through the door, you have a really good chance of making a sale. And the consumer would really like to be treated more personal. So how can we merge these two and bring them together? And the answer was, if foot traffic is so important, then how come no one ever rewards anybody for visiting a store? Why only for purchases? Why not for visits? And the answer to that question is because nobody has a clue that you're at the store until you buy something. So we said we're going to change that. And smartphones could be the way to do it. And then we imagined, OK, let's use GPS. GPS can tell you if you're at a store, right? Because it's so accurate. Well, the answer is, no, it can't. GPS is so inaccurate that it actually only delivers you information whether somebody is a block or two away, but not if somebody is really inside the store. So we had to come up with something better. Because if you don't know somebody's at the store, but then you give them a reward for showing up, not everybody is honest enough to actually be at the store if you give them a reward without having to be there. So we had to develop something better. So we came up with a new technology. And this is the ShopKick signal. It's a little box, it's a white plastic box. And it just plugs into a power outlet. It doesn't need any Wi-Fi or internet. And it's inside the store. And what's unique about this thing is that it emits an inaudible audio signal at 21,000 Hertz above the range of human hearing. And inside the signal is a unique code embedded that's different for each store. So we know exactly which store you're at, even in a mall where there's no GPS at all. And the microphone of the smartphone picks up that signal and recognizes that you're at the store. So it's completely privacy protected because the consumer decides whether they want to open the ShopKick app and receive the signal or not. So we have now deployed this thing in 7,000 stores, large stores in America, including Target and Macy's and Old Navy and Best Buy and Crade and Barrel. And these stores now have the ability to welcome you and give you a reward. And then the next step could be, if you think about in future out in the vision of ShopKick, is to make shopping better. Well, what if you can actually welcome you and show you an item that you like and guide you through the store and make it a more interactive experience? And maybe start even earlier, on a Sunday afternoon when you're sitting on your couch and you're thinking about going shopping, but you don't know where yet. And in the old days, people tended to get their Sunday newspaper and the Sunday inserts that showed them all the items they should buy. Well, I don't know when you've tried that the last time, but when you go through one of these catalogs, you like an item, let's say you like a pair of pants. Two seconds later, you've probably already forgotten what you liked. And five days later, you never remember when you go to the store. What if you could actually have that digitally on your phone, put it into your favorites? And the next time you walk into the store at Macy's, it opens the application. It says, welcome to Macy's, here's your reward in the form of a virtual currency called Kicks. And by the way, here are the pants you like. You should check them out. That closes the arc, what we call the arc from the couch to the store and makes it a much more coherent, consistent experience. So that's what Shopkick is doing. And the retail industry as a whole needs help. There's a lot of competition from the online world. We're talking about a $3 trillion industry that is only the US market for offline shopping. It's 12 times larger than online shopping. And yet, very little digital juice, as we call it, has been injected into the physical world. So that's what we do. We inject digital juice into the physical world and make the offline touchable world a more interactive experience and make that more entertaining and fun. And hopefully with that, we can help keep stores alive and make them a better place for everyone, both the consumers as well as the retailers.