ShopSavvy in Austin talking mobile payments, NFC, mobile advertising, and the war between Amazon and local retail.

One of the most common questions I’ve been getting at conferences and panels lately is around NFC and “is it a bubble” or where is it headed?  I thought it might be good to note some quick thoughts on the topic.

The last few years many large players in banking, technology and related industries have worked hard to push NFC related technologies to control the wallet.   The theory has been if you can control the wallet, you gain strategic advantages and marketing insights into the customer that are very valuable and can be leveraged across a much larger business.      This has resulted in the strategic groups at many entities engaging in a ferocious battle with carrier partnerships, talent raids/wars and other initiatives to try and push these efforts to gain the lead in the payments marketplace.

Those efforts are interesting, but what’s the value proposition for shoppers?

The problem with NFC is while the strategic benefit of “winning” is clear for large players in banking, technology and even the carriers, the value proposition to consumers  is not.  How does NFC actually make the shopping experience better?   This isn’t a developing country where no credit card system exists and you have to bring a pile of cash to check out at the hotel, you can pay a credit card and it’s great.

With NFC- how are you making the shopping experience better beyond what we have now with the credit card?  Is the credit card really broken? What’s the value proposition for consumers? What about for retailers?

People have charged ahead without answering these questions and as a result we have penetration rates on mobile phones in the single digits, and more alarmingly the same penetration rates at the retail point of sale (so even if phones catch up, not enough retailers support it yet).

This doesn’t mean NFC is dead- it just means the answers around payments will probably come from new players not yet in the game.  One candidate not often discussed—the retailers.  These retailers need to challenge their old business models and think of how they can actually improve the shopping experience using technology.   Restoring a sense of fun and wonder when I walk in the store using these portable computers in the hand could dramatically impact a retail business looking to “turn the tide”.   No question even if this innovation doesn’t come from the retailers, you are going to need to find ways that the value proposition works for them, not just the consumer.  What could the shopping experience look like in the next 5 years in terms of not just payment, but product and deal discovery?

We think the way you shop in 3-5 years will be completely different and at ShopSavy we are working to make this happen a little bit every day.   We know it’s a challenging time times for our retail partners but we believe it represents an opportunity for leaders in retail to really lead the charge and jump ahead of the competition (including Amazon) using technology.   Over the coming year we expect to introduce many of these technologies at ShopSavvy with our strategic partners—we can’t wait to help create the future of shopping.

Here’s today’s press release:

ShopSavvy Partners with Grocery Server to Deliver Hyper-Relevant Deals to Mobile Consumers

Users will see targeted deals and specials from 200 grocery and retail chains, based on their location and shopping interests.

DALLAS and ANN ARBOR, Mich. — ShopSavvy, the leading mobile shopping assistant, today announced that it has teamed with Grocery Server, the leading grocery deal comparison search engine, to deliver hyper-relevant grocery deals, coupons and incentives to ShopSavvy’s more than 11 million users. The unique Grocery Server deals content will be incorporated into ShopSavvy in the coming weeks.

Once launched, ShopSavvy users who scan grocery products will not only be able to compare prices on an item, but will also see current coupons and deals available on that item or similar items at nearby grocery stores, as they shop. This enables consumers to make the best purchase decisions possible and save money on their grocery bill. U.S. consumers pass up more than $200 billion in grocery savings annually simply because they aren’t aware of deals and coupons and don’t have time to look for them, according to an analysis by Grocery Server.

“ShopSavvy is the leading shopping assistant for iPhone and Android, and our users are saving every day on consumer electronics, DVDs, books, video games, toys and other retail categories,” said John Boyd, co-founder and vice president of business development for ShopSavvy. “This partnership extends our leadership to the grocery category, where our shoppers are demanding better information on grocery products and new opportunities to save using the latest technology. This is only the beginning of what we have planned for grocery, which we think is a category poised for savings and opportunity over the coming five years.”

“ShopSavvy has changed the way users shop and is the natural partner for Grocery Server to introduce its grocery deal finding technology to mobile consumers,” said Corbin de Rubertis, co-founder and CEO of Grocery Server. “Grocery Server is able to lend our extensive database of local grocery deals, aggregating coupons and in-store specials at more than 200 chains nationwide, to help ShopSavvy expand its coverage of this category and provide users instant access to savings on the shopping trip they make most frequently — to the grocery store.”

ShopSavvy provides users with prices, reviews and other information on millions of products from tens of thousands of retailers worldwide. Grocery is expected to be a major focus in the months and years ahead, as ShopSavvy adds product and inventory data from supermarkets, grocery stores, convenience stores and other food and beverage retailers.

ShopSavvy’s interest in delivering product information to users extends beyond pricing and deals. In March, ShopSavvy teamed with Salinas, Calif.-based Top 10 Produce LLC to deliver local grower profiles to users who scan strawberries marketed under the Locale brand.

About Grocery Server

Founded by a team of retail, marketing and technology veterans from Qponix LLC and MyGroceryDeals.com, Grocery Server provides technology solutions for consumer brands, retailers and publishers. The Grocery Server website, www.groceryserver.com, demonstrates the powerful shopping and search engine that matches items on a grocery list with all available local grocery sales. In addition to www.groceryserver.com, Grocery Server also provides white label products that enable publishers, retailers and brands to include grocery deal-finders, shopping lists, planning tools, brand advertising and more for their own Web, mobile and social sites. Grocery Server and its online tools can save shoppers hundreds – even thousands of dollars annually – and are incredibly easy to use. Learn more at www.facebook.com/groceryserver.

About ShopSavvy

ShopSavvy is the leading mobile shopping assistant, with more than 20 million downloads and 11 million current unique users. ShopSavvy empowers smartphone users to quickly and seamlessly locate, research and buy products at the point of sale. When users scan a barcode or input a product name, they discover where the item is sold locally and online, where it’s in stock and at what price. ShopSavvy aggregates product data, deals, ratings and reviews from retailers, partners and its own users to provide the most comprehensive source of information and advice for mobile shoppers anywhere. For advertisers, ShopSavvy delivers “hyper-relevant” deals, promotions, warranty offers, and other UPC/GPS-targeted content to consumers. For more information, visit http://shopsavvy.mobi.

Matt Weathers, our VP of Product, gave an interview to Mobile Commerce Daily on the ShopSavvy-Spotzot deal for an article that ran today.

For those who’d like more detail on the deal, here’s the full Q&A from that interview:

MCD: What is the strategy behind adding this new feature to ShopSavvy? Why did the two companies decide to partner?

Matt: ShopSavvy’s mission is to give power to consumers so they can make informed shopping decisions. When a user opens our app to get information on a product, one of the top questions they have is, “Are there any deals on this item?” Immediately after that, their question is, “Are there any other deals nearby or in this same category?” With Spotzot’s data and our search experience, we are now able to quickly answer those questions. We look for an exact deal or similar deals.

For example, a mom shopping for diapers is likely to be interested in special baby-care deals. If deals are available, we can present those deals immediately to the consumer without any additional work on her part. She does not need to walk around the whole store looking for sales, or find and flip through a Sunday circular.

MCD: What is the user experience like? Walk through how deals are presented to ShopSavvy users.

Matt: There are several ways we are using Spotzot deals. Three examples:

1. Sam is buying some softball and tennis gear for his daughter. He uses our app to scan the barcode of a baseball glove. We detect that his location at the time of the scan is near a retailer with a 20% sale on sporting goods. In addition to online prices, local prices, and reviews, we will be able to display that sale information. The dad then goes to the store next door to buy the glove and some other items. That retailer benefits by driving foot traffic into the store.

2. Lisa, a college student, is buying school supplies at an office supply store. She scans a toner cartridge. We not only give her price and review information, but we will also tell her how many deals on office products are available in that store. She can browse through the deals right on her phone rather than walking around. She finds a great sale on desk organizers. The retailer benefits by selling more items.

3. Betty has just bought a purse at a shopping center. As she leaves the store, she wonders if there are any deals at other stores in the shopping center. She opens the ShopSavvy app and goes to the deals tab. We present a list of stores nearby that have deals. She can browse through them rather than walking to each store. She finds a great sale she didn’t know about, and goes to the retailer to buy some clothes. She gets a deal. The retailer benefits from the additional foot traffic.

MCD: What kinds of targeted deals does the app give? Can you provide examples?

Matt: The sales change as often as daily or hourly. Spotzot updates them frequently. Here are a few available through Spotzot right now:

Office Depot: Get $20 off when you purchase $79 of HP Ink
Macy’s: Up to 50% off on women’s shoes
Sports Authority: $25 off any purchase $100 or more
Barnes and Noble: $5 off a purchase of $50 (for members)
Gap: 60% & above off on women’s tops

MCD: Why are deal apps important to the shopping experience? Why are deals through ShopSavvy better than most deal apps?

Matt: When users are shopping, one of the most important questions, especially in today’s economy, is price: “Am I getting a good deal?” ShopSavvy has been revealing online and local prices for items for almost three years now. A deal is basically a temporary and conditional change of price. Now we can give users full pricing information so that they can really save money.

The difference is most deal apps only provide deal information and the consumer has to sift through thousands of deals by category or retailer. With our app, the user is already using it to get information on items they are actually considering buying. We use that information to display only the deals that the consumer is likely to be interested in.

Additionally, most shoppers don’t remember to open deal apps, in the same way that most consumers don’t think to go find the deal circular. By contrast, several million consumers are already using our app to get pricing and review information when they shop.

MCD: Where do you see the future of mobile going with shopping apps?

Matt: Consumers are realizing that their smartphones can give them a huge edge when shopping, but they do not want to go to multiple apps, slow websites or sift through overwhelming deal data. Shopping apps that deliver powerful and timely information to consumers in a simple way will earn their trust. In turn, merchants are realizing that apps with high consumer usage provide an avenue to reach consumers in a highly targeted way. We are focusing on this trend by helping users make shopping decisions and merchants reach those consumers.

One of the problems with most deal apps is that people never think to open them while they’re in stores. ShopSavvy users are different, however, as they generally use their app whenever they are comparison shopping. Through our new partnership with Spotzot, ShopSavvy can now serve these users highly targeted deals, delivered while they shop.

Here’s today’s press release:

ShopSavvy Partners with Spotzot to Give More Targeted, Timely Deals to Mobile Consumers

Smartphone users are delivered the deals, coupons and sales they want – when and where they want them.

ShopSavvy, the leading mobile shopping assistant, has joined forces with Spotzot, the primary source for mobile deals, to help merchants and brands connect with consumers by providing highly targeted deals.

By partnering with Spotzot, ShopSavvy will deliver the deals, coupons and sales information most relevant to its users, based on their location and demonstrated shopping interest. ShopSavvy users will receive the most relevant deals within 500 feet of their location.

“When consumers go shopping, most don’t think to open deal apps, which can be overwhelming and painful to navigate,” said Matt Weathers, vice president of product for ShopSavvy. “Also, people don’t just wake up in the morning and say ‘Let’s find some deals.’ They shop for items they actually need and want. Along the way, they seek the best prices and deals. Users already use the ShopSavvy app to get price and review information. Now, with Spotzot’s data, we can serve them deals that relate to exactly where they are standing and what they want at that moment.”

ShopSavvy’s partnership with Spotzot provides users with the most comprehensive catalog of in-store offers and coupons available at locations across the United States. Shoppers can spot deals before or while visiting more than 400,000 retail locations, including 1,000 major malls and outlets.

“ShopSavvy helps retail merchants and brands reach consumers while they shop in stores,” said Jim Schreitmueller, Spotzot co-founder and vice president of sales and marketing. “When consumers scan products on ShopSavvy, Spotzot’s deal search engine reveals discount offers and coupons valid in the store where the consumer is shopping, in nearby stores and available from retailers’ online stores, ensuring consumers get what they want at the best available price.”

Spotzot was selected from more than a dozen vendors because it offered ShopSavvy the most structured, accurate and comprehensive deal inventory available.

Spotzot is currently delivering deals to ShopSavvy’s Android smartphone users, with the service expected to be deployed on iPhone next month.

About Spotzot

Spotzot is a mobile deal search platform that helps merchants and brands reach millions of consumers and drive them into retail stores and restaurants. Based in San Jose, California, Spotzot is the #1 source of location-based, in-store promotions and coupons featuring richly tagged offers from the top 750 retail chain operators valid at more than 400,000 locations across the U.S. Spotzot’s unique deal content attracts consumers with high intent and enables merchants and brands to display timely and contextually relevant ads and offers to shoppers by location. The company distributes its content through leading mobile shopping app publishing partners that include eBay/Milo (in-store shopping), ShopSavvy (comparative local/online shopping), Shopkick (retail shopping rewards), CardStar (virtual merchant loyalty cards), Geodelic (local deals / discovery) and others. For more information about Spotzot, visit www.spotzot.com.

About ShopSavvy

ShopSavvy is the leading mobile shopping assistant, with more than 20 million downloads and 11 million current unique users. ShopSavvy empowers smartphone users to quickly and seamlessly locate, research and buy products at the point of sale. When users scan a barcode or input a product name, they discover where the item is sold locally and online, where it’s in stock and at what price. ShopSavvy aggregates product data, deals, ratings and reviews from retailers, partners and its own users to provide the most comprehensive source of information and advice for mobile shoppers anywhere. For advertisers, ShopSavvy delivers “hyper-relevant” deals, promotions, warranty offers, and other UPC/GPS-targeted content to consumers. For more information, visit http://shopsavvy.mobi.

Thought I would share this picture of John representing ShopSavvy at the Shopper Marketing Summit in Chicago. Great job!

ShopSavvy allows us to use shopping ‘signals’ and technology to drive the BEST offers. 50% of our users visit the current deal tab in ShopSavvy. Today we syndicate deals through relationships with Groupon and Retailmenot as well as running our own deals. Our deal tab can target individuals, regions, shopping behavior and/or global audiences. We can push deals via notifications and allow for social promotion and crowd-sourcing of offers based on geography and product category. Our next version of Deals will be delivered via the AdOn framework in HTML5 and allow for quick re-rendering to suit the needs of the consumer – i.e. more services less plasma TVs or vice versa.

Be the first ShopSavvy user to add 1,000 products from Walmart to our system and win a Macbook Air for Christmas. Just head to your local Walmart and start scanning products. Add the missing products, titles and prices and if you are the first user to hit 1,000 you win!

The terms and conditions can be found in the Deal tab of ShopSavvy 4 on the iPhone. We will announce the winner soon and include pictures of the user with their new Macbook Air and a short interview (oh, if you win you have to let us photograph and interview you).

ShopSavvy 4 users have started to notice the ‘Deal’ tab inside of ShopSavvy. According to Flurry half of our sessions are now associated with ‘Deals’ instead of barcode scans. This is awesome news. I wanted to tell you about our latest deal:

Win and iPad! Scan Toy Story 3 before December 1st and replace the standard cover art image with a picture of yourself (or your family) holding the DVD for a chance to win an Apple iPad. Here are the instructions (iPhone friendly, not web friendly).

The promotion started at 11AM CST and LOTS of you have already entered by editing the picture of Toy Story. Here are a few that caught my eye:

Can’t wait to see what the rest of you come up with.