From a quick glance at the site, I believe you are supposed to leave the spigot open after installing this device. It's thermostatically operated (like a tempering valve) to open at 5 degrees above freezing to flush out the cold water. The device closes again when the spigot fills with warmer water. This process of wait then flush/fill repeats as long as the outside temp is below 37 degrees.The key words are, "IF IT WORKS", and I cannot see HOW it would work, unless you turned on the faucet, because it installs AFTER the shut off portion, and even then there is NOTHING that would stop the water IN the valve from freezing..
While this will save water compared to leaving your spigot dripping/dribbling, it's still wasteful. But if you need an outdoor spigot to be operational throughout the winter, I suppose it's not a bad idea.