Since Eduardo Saverin, the other Facebook co-founder, invested in ShopSavvy reporters have been calling non-stop. Every week one or more reporters will call or email trying to get an interview with him. While I can’t confirm or deny the reports you may have read about the elusive entrepreneurs and investor, I can tell you having Eduardo on the team is VERY valuable. Eduardo is very connected and has made several very valuable connections in the short time he has been on the ShopSavvy team. Of course there are other benefits, for example, whenever Eduardo’s investment in ShopSavvy is mentioned in he press as it was today in the WSJ our downloads, which range between 1,000,000 and 2,000,000 each month, can double for the day. Eduardo has a unique vision with regard to mobile and retail – a vision we share. He is attempting to monetize that vision through several very targeted investments including ShopSavvy and Jumio. I wouldn’t take his strategy lightly and I wouldn’t believe everything I read in the New York Post.

Note to Reporters: we do not manage Eduardo’s calendar, but feel free to keep calling – we’ll take all the PR we can get.

If you are a student of retail you are well aware of the phenomenon called ‘showrooming’. According to a study by Pew 52% of shoppers used their smartphone to perform research while standing in retail stores – more than 19% convert their offline/in-store purchase to an online retailer. We believe retailers should not fear showrooming – instead they should embrace it sooner than later.

The ShopSavvy team works with almost every major brick and mortar retailer as well as lots of online retailers – more than 40,000 in total. We began hearing concerns about ‘showrooming’ more than two years ago. In fact, as recently as last week I was in London speaking at the Rutberg Summit and half of the audience questions were about the topic of showrooming. Some of the other panelists recommended various ‘answers’ to the phenomenon including:

• offering products not found online – i.e. custom UPCs
• disconnect WiFi and block cell signals
• ban the use of cameras (i.e. the barcode scanner uses the camera)

When we talk to retailers we try to help them understand that showrooming might be a great way to grow their own business. First, we begin by explaining that at any given moment MORE shoppers are in their competitors stores than in their own retail locations. Here are some interesting figures:

• Best Buy has 1,099 out of 43,810 electronic retail locations
• Barnes & Nobel has 691 out of 32,050 book store locations
• Macy’s has 805 out of 36,140 department store locations
• Safeway has 1,725 out of 253,572 grocery store locations

What if a retailer like Best Buy could start a conversation with the shoppers in the 43,810 locations they don’t own? ShopSavvy can provide a set of rails that enable a retailer to start a conversation with a consumer at the point of purchase both inside and outside of their own retail store locations.

Once retailers began realizing that showrooming wasn’t just a game to be played by Amazon they began looking for solutions. With more than 40,000,000 downloads, ShopSavvy is a great way to connect with shoppers who are VERY deep in the purchase funnel – we know which store they are in and what product they are about to purchase. Last year we launched ShopSavvy Wallet that enabled one-slide purchases from shoppers – they simply scan a product and without leaving the app they can pay for the item with a simple swipe of their finger. We have built wallet adapters with leading brick and mortar retailers like Barnes & Nobel, Walmart, Target, Toys ‘R’ Us, RadioShack, Dick’s Sporting Goods, GNC, Macy’s, JCPenny, Office Depot, Lowe’s, OfficeMax and Nordstrom – a total of 64 retailers to date. The feature allows each to leverage the showrooms of their competitors.

Some retailers play fair – just displaying their pricing in our app and offering a quick and easy way to convert a purchase from offline to online. Other retailers leverage information provided by ShopSavvy – capturing the business of the sort of shoppers who are the most profitable. Barnes & Nobel is a perfect example of a retailer who is skillfully leveraging ShopSavvy.

Barnes & Nobel sells books at two very different price points. In their stores they sell books at a 10% discount to members. On their website they sell books at prices that are often less than Amazon’s prices (our data shows that Amazon only has the best price about 6% of the time, meaning that 94% of the time other retailers offer a better deal). Whenever shoppers scan the barcodes of books in any one of the 32,050 bookstores not own by Barnes & Nobel they see the online price which is almost always significantly less than the price offered by the retailer whose store they are standing in. Our data shows that shoppers first scan is almost always going to be purchased from their current location – the second and third scan is VERY vulnerable to capture. The most interesting bit of data we uncovered was that when B&N did convert the sale, 30% of the converted shoppers showed up in Barnes & Nobel and scanned a product within 30 days. B&N was able to convince the consumer to show up in their store to buy books instead of the original bookseller’s store.

Retailers who leverage an omni-channel approach as well as applications like ShopSavvy can reach far more shoppers than their own retail locations can alone. Start a conversation where the consumer is, not where you wish he was.

The Grand Bazaar is located deep inside of the walled city of Istanbul. Founded in 1455, it is the largest and oldest covered markets in the world with more than 61 covered streets and 3,000 shops attracting more than 250,000 visitors each day. It might seem strange to look back to a 15th century shopping experience to point to the future of retail, but we believe retail is headed ‘back to the future’.

Many retail watchers are beginning to realize that in-store experiences are too linear and too one dimensional. Today shoppers enter retail stores and see the same products for the same prices every other shopper experiences. We believe that retailers who strive to create specialized experiences will see their share of consumer spending increase.

For hundreds of years shoppers in the Grand Bazaar have experienced a unique 1-on-1 conversation with retailers. With more than 3,000 shops competing for the same shoppers you might assume everything would come down to price. You would be wrong. If you stopped watching the retailers and started watching the shoppers you would begin to see order out of the chaos. Take for example the throngs of designer-clad women holding their designer Chanel and Hermes bags as they weave purposefully through the narrow streets and aisles. If you watch closely you will see them disappear through certain shop’s ‘anonymous portals‘, Inside they are able to find the best of the best in designer merchandise delivered in a highly personalized and intimate manner. These ‘in the know’ shoppers have discovered an exclusive shopping experience that isn’t available to just anyone. Coupled with the exclusive nature of the experience the retailer has added a second, important, ingredient: scarcity. Think of these retail experiences as ‘highly curated’ for these ‘in the know’ shoppers (designers, buyers, locals, stars and moguls).

Smart retailers can begin to leverage the ingredients of the Bazaar to begin to start 1-on-1 conversations with today’s highly connected consumer. These conversations don’t have to be about price. For example Macy’s CEO, Terry Lundgren, is in the process of remaking his storied retail brand. Last year ShopSavvy licensed it’s scanner technology to Macy’s for the development of their Backstage Pass program – touted as a way to ‘Shop like a VIP with Macy’s Backstage Pass’. Shoppers scan the red stars throughout the store to watch exclusive fashion tips and insider advice from stars like Carlos Santana, Rachel Ray, Donald Trump, Tommy Hilfiger, Martha Stewart and Michael Kors – all specifically tailored to individual shoppers. Over time this ‘backstage’ experience becomes more and more customized as Macy’s begins to build a more intimate relationship with the shopper.

But it isn’t just about mobile, Lundgren is also installing kiosks in-store than provide consumers access to reviews, advice from friends and the ability to pay on the spot. Additionally, he has placed an electronic concierge in the cosmetic section to recommend skin care products. Lungren explains, “It’s clear to me that the consumer likes shopping online, I am focused on how do we make them feel as comfortable and ready to buy in our stores as they do online?” Finally, Macy’s is turning 292 of its more than 800 stores double as distribution centers for online orders t0 better compete with Amazon.com. Macy’s is embracing an omni-channel, 1-to-1 approach to consumers.

Applications like ShopSavvy can help retailers open new lines of communications with shoppers. By making a topical connection at the exact right moment shoppers will appreciate the conversation. Successful retailers will learn to leverage these exclusive and scarce moments and shoppers will reward them.

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.

Image via CrunchBase

The recent move by Amazon to offer $5 for retail shoppers to buy online felt like kicking a man twice when he was already down to a lot of retailers.  Many merchants were already concerned about being used as a glorified showroom for Amazon’s Jeff Bezos before this recent move with speculation that many were missing their numbers because of Amazons mobile price check application.

Here at ShopSavvy we love local merchants.   Our users want to know what all their options are both online and local presented in a neutral and unbiased way— not just merchants in Amazon’s marketplace.  They want this presented without favoritism so they can make good buying decisions about product selection and where to buy.  Buying from Amazon is great and for many habitual, but did you know in our system they are the lowest priced choice only 7% of the time? If you buy from Amazon, you are not always getting the best deal and they certainly don’t work to get you local options.

Even when the price is lower online, our users often want to see what their local options are, either for immediate gratification or because they love the relationship they have with their local retailer.  In the long run we believe a balanced ecosystem of strong local retail with efficient online options is healthiest and this is what we strive for.

So while local stores have had a really brutal few years, this is going to change in the next few years as they get new opportunities to fight back.  In fact, we think current shopping experience for local retail is going to be transformed significantly in the next 3-5 years.   The mini computers people are carrying in their hands now are just using things like reviews, purchasing and price comparison as an early beachhead.  In a few years the way you shop locally will be completely different.

Why? Whole new conversations will be starting between brands, retailers and shoppers will transform retail and the shopping experience making it more connected (with friends/family), informed and enjoyable.  This will dramatically improve the local shopping experience and give local merchants new ways to offer value relative to online options that may not be readily apparent now.

Consumers are open to new sorts of conversations with retailers that are not happening now.  For example, currently most conversations between retailers and consumers now are what I call “One to Many”.  If you offer a sale, it’s often to large groups of people and there is very little segmentation or targeting.   With these new technologies based on loyalty data, buying patterns, and strategies such as competitive couponing, consumers will start to have one to one conversations with retailers.

The last decade or so has not been a great one for local retailers, but  the tide is changing with advances in technology.  Ironically, the technology that is causing pain for local retailers now, will offer new opportunities in the future.  For the those retailers that embrace this change, and get ahead of the curve, we believe it’s a competitive opportunity to recapture some lost ground and create a better shopping experience for shoppers.  This takes courage not to stick your head in the sand while Amazon steals your lunch.

To that end, if you are a local retailer that is looking to find ways to start new conversations with consumers in your stores—reach out to us –we’re listening and open to new ideas to help local merchants.  Amazon doesn’t have the last word here, this is just the beginning of what technology can bring to local.

To show off ShopSavvy 5 and highlight the latest trends in mobile shopping in advance of Black Friday, we’ve put together some broadcast-quality b-roll of shoppers scanning products, comparing prices, buying products with one-tap shopping, and much, much more. You can also find a quick 3-minute overview of everything that’s new in ShopSavvy 5.

Check out the holiday shopping b-roll here!

Ryan Kim from GigOm has the scoop in a post title, “ShopSavvy brings instant scan and buy to mobile shoppers.” The big news in ShopSavvy 5 (available both on iOS and Android) is our new wallet feature. We have built adapters that allow for ‘one tap’ purchasing from online retailers like Barnes & Noble and Buy.com. Think Amazon one-click for any retailer on mobile – i.e. one-tap.

We have built adapters for 49 retailers to date and we expect to bring on two to three retailers each week until 2012. Bigger retailers currently live are: Barnes & Noble, Buy.com, Toys ‘R Us, Babies ‘R Us, Radio Shack, Dick’s Sporting Goods, Sports Authority, Ace Hardware. Coming soon: Target and Walmart.

Here is an overview of ShopSavvy from me:

Finally, there is also an unannounced ‘beta feature’ in ShopSavvy 5. We aren’t going to publicize it until after Christmas, but power users should be pretty excited when they find it.

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.

ShopSavvy has won its share of awards since our launch in 2008. In fact, we received our first major honor — winning the Google Android Challenge — before the app was even commercially available.

Most of the recognition we’ve received has come from within the technology or mobile space, from the Crunchies to Under the Radar, SXSW Interactive, Macworld and the Mobile World Congress. We even got to speak before the French Senate in Paris as one of 10 global winners in the Netexplorateur digital innovation awards.

Now, it looks like the broader retail world is taking notice of ShopSavvy. We were named a finalist in the 2011 Online Retail Awards for overall achievement in mobile experience.

Here’s today’s press release:

ShopSavvy Named Finalist in 2011 Online Retail Awards

Top shopping app cited for overall achievement in mobile experience for retail consumers.

ShopSavvy, the leading mobile shopping assistant, has been named a finalist in the overall achievement category for mobile in the 2011 Online Retail Awards (ORAs), the only international awards dedicated to recognizing the excellence of website and mobile experiences provided to retail customers. ORA winners will be announced in August.

“ShopSavvy has disrupted the relationship between local and online retail in a fundamental way – a fact that more and more retailers and brands are acknowledging and embracing,” said Alexander Muse, CEO and co-founder of ShopSavvy. “We are grateful to be named an ORA finalist, which reflects this important shift in the retail landscape.”

ShopSavvy empowers its more than 11 million active users to locate, research and buy products at the point of sale. ShopSavvy aggregates product prices, deals, ratings and reviews from retailers, partners and its own users to provide the most comprehensive source of independent information and advice for mobile shoppers anywhere.

Muse said ShopSavvy is rapidly developing advertising and strategic relationships with major retailers.

“As of this month, Best Buy is a ShopSavvy advertiser, and we have previously partnered with Sam’s Club among other retailers,” Muse said. “As advertisers fully grasp the power of UPC/GPS-targeted ads, which serve marketing messages based on a consumer’s specific location and buying intent, ShopSavvy’s impact on the retail sector will continue to grow.”

Now in their third year, the Online Retail Awards comprise 22 retail sector category awards, six overall achievement awards and a Prix d’OR winner. This is the first year the competition has included an overall achievement award for mobile websites and consumer-facing apps. Expert judges, chosen from the worlds of retailing, advertising and marketing, vote independently for the best online retail experiences in each category.