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Shopping app Checkpoints drives product discovery

Ryan Kim — Wed, 08 Feb 2012 15:30:55 +0000

A lot of the talk about mobile shopping apps has revolved around users looking up prices and getting information on products they want to buy. But the apps are also becoming powerful discovery tools for brands, who are using apps like InMarket’s Checkpoints to help surface new products for consumers.

InMarket told me that in its first survey of performance statistics, it found that 50 percent of its users discovered new products using the Checkpoints app in the fourth quarter last year. InMarket doesn’t have comparative data for previous quarters but the figure shows that brands are able to drive a lot of discovery of products through shopping apps such as Checkpoints.

Checkpoints allows users to win points toward rewards for checking into stores and scanning products. The app sounds similar to Shopkick but it emphasizes products, which can be found at 2 million retail locations. Checkpoints works with brands like Proctor & Gamble, Levi’s, Coca Cola and Nestle, to highlight products in particular stores and chains that users can interact with. Brands can also advertise through Checkpoints and other partner apps including ShopSavvy that are now connected to to InMarket’s Shopper Network, which now reaches 20 million consumers. InMarket is looking to expand its Shopper Network in the coming weeks with a new SDK that will allow other apps to incorporate some of the Checkpoints functionality.

Some of the brands using Checkpoint are seeing a big return on their investment. Dreyer’s and Edy’s Ice Cream used Checkpoints to drive consumers to buy their product last summer. The company said it had a 340 percent return on investment as overall dollar sales among Checkpoints users went up 88 percent and shoppers reported a 94.8 percent higher purchase intent after engaging with the ice cream brand.

“Our specialty is connecting with consumers before, during and after shopping,” said Dave Heinzinger, director of communications for InMarket. “We’re changing the game on how we influence consumer behavior once consumers are inside the store.”

As we’ve been reporting, the shopping experience is being transformed by mobile devices and mobile shopping apps. Some are helping retailers build more loyalty and engagement in store. But many are also arming consumers with price comparisons online and in other stores and providing additional information on reviews, product details and ratings. A recent Pew study found that half of U.S. shoppers rely on their phones now for in-store research to help inform their buying decisions.

This is a challenge for retailers and brands but it’s also an opportunity as Checkpoints is showing. As consumers increasingly look to mobile apps, there’s a chance to get products in front of consumers, which can be especially potent when you can establish that a person is in a store and is looking to buy. The Pew study found that of the people who conducted online price research on a product, 35 percent still bought the product in the store while 19 percent purchased online and another 8 percent went to another store to buy. If given the right incentive, consumers I think are willing to stay in store and buy. That’s important for both brands and retailers because while consumers may be looking for the best deal around, they’re also willing to just buy now if they feel like they get some value or they’re not getting ripped off.

Shoppers are going to continue turning to mobile apps this year as smartphone penetration moves beyond 50 percent in the U.S. But now the question for brands and retailer is how do you harness these trends to help sell products and keep people in stores. Checkpoints is reporting some solid results and showing how a challenge can be an opportunity as well.

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ShopSavvy lets users scan products to sell

Ryan Kim — Wed, 25 Jan 2012 13:00:34 +0000

ShopSavvy, a mobile app known for arming shoppers with the ability to scan products to find the best prices, is now giving consumers the ability to scan products they own so they can quickly put them up for sale. ShopSavvy’s SavvyListings enables people to become sellers through ShopSavvy and also enhances the scan results people have for local products by letting them see new and used products from 20 million fellow users.

The new feature takes some of the selling of Craigslist and tries to simplify it through barcode scanning. When a user scans a product, they can choose to sell it, and ShopSavvy creates a listing of the product with a picture, information and category, and even suggests a recommended price. Users add the condition of the product and how much they want to sell it for.

ShopSavvy then includes the product in local searches by consumers, who scan a product. If a user wants to buy a used product, ShopSavvy sends the seller that person’s email address so they can continue the sale and arrange for delivery. Right now, ShopSavvy doesn’t take a commission on the transaction.

ShopSavvy’s CEO and co-founder Alexander Muse told me SavvyListings was the most requested feature from users. He said the company is waiting to see how it fares first, but if it’s well received, ShopSavvy is looking at instituting a buy-back program, which will would likely work with Best Buy’s buy back system for repurchasing used goods. He said the inclusion of SavvyListings makes ShopSavvy a more robust shopping tool and makes it more attractive than Craigslist for buying and selling.

“On Craigslist, if I remember to go to Craigslist, I can find a good deal, but it’s a 20 percent hit rate. If I want to buy that product now, there’s often not a match. But if you scan a product, you’ll find the best deal new or possibly from a ShopSavvy user,” Muse said. “We are trying to take out things that make Craigslist more challenging for selling, like describing and taking pictures. We’re taking the inertia out and putting in price recommendations and give that as a tool.”

The move also helps ShopSavvy in its competition with Amazon, which also sells used goods. Muse is quick to tout ShopSavvy’s ability to find cheaper listings for products 94 percent of the time compared to Amazon. Muse said the company is taking some of its recent $7 million in funding to layer in more social integration, which can help with SavvyListings by adding more reputation and karma.

It’s still not clear how much people will want to use ShopSavvy to sell, not just buy. But it’s a logical step that gives users an easy way to make some money. And it creates even more value in ShopSavvy’s network of users and helps make ShopSavvy an even more compelling resource for mobile shoppers.

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ShopSavvy brings instant scan and buy to mobile shoppers

Ryan Kim — Thu, 17 Nov 2011 05:00:19 +0000

Mobile shopping tools like RedLaser and ShopSavvy have been a huge help in letting users compare prices through barcode scanning and decide if the product they’re seeing in store can be found for cheaper nearby or online. Now, those apps are letting people not only find better deals but immediately take advantage of those deals right through the apps.

EBay, which owns RedLaser, last week showed off how a consumer can scan a product, find the lowest price from retailers from participating businesses, and then buy the product right through the latest version of RedLaser using PayPal. The implementation is still limited with Toys-R-Us being one of the few retailers to partner with RedLaser on the service. But eBay expects to get more retailers to sign on. Users can’t buy things on eBay or through the eBay app, just though RedLaser.

Now ShopSavvy, which competes against RedLaser and has just raised $7 million, is bringing similar functionality with ShopSavvy 5, the latest versions of its iPhone and Android apps. Users scan a product and see a better deal from retailers like Walmart.com, Target.com, BestBuy.com and BN.com. Then they can buy that product directly through the ShopSavvy app, which is due out Thursday, and have it delivered to them. If customers have set up a ShopSavvy wallet, they can make a purchase with one tap. ShopSavvy introduced this scan-and-buy functionality earlier this year in a limited beta but the service is now expanding nationwide. ShopSavvy 5 also brings a bunch of other improvements like better keyword search, improved comparison shopping and more local deals highlighted on its deals tab.

The rise of instant scan and buy raises the stakes for retailers. They have always had to worry about their prices relative to the competition, but now the consequences of being overpriced can be felt instantaneously. For retailers who integrate with these tools, there’s the opportunity to pick off a consumer instantly right from the aisle of a competitor. They don’t have to lure them over to their own mobile site or into their store. They can seal a transaction immediately. But they do have to price aggressively. Retailers who stand to lose a sale can also respond by price matching.

For consumers, scan-and-buy is another sign of how smartphone apps are making shopping even simpler and how it’s empowering users to always find the lowest deals from retailers. As Om wrote, consumers are becoming smart buyers who are armed with a wealth of data at their fingertips. Now, the next step for mobile commerce is to remove any remaining hang-ups in the buying process. If people want to buy, especially quickly, purchasing through these apps can be a big help.

This comes at a perfect time for the holidays when shoppers will be stressed and short on time as they look for gifts. As we’ve written, mobile shopping is going to be big this holiday season and the addition of instant scanning and buying will only add to that.

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Facebook co-founder Saverin leads ShopSavvy’s $7M round

Ryan Kim — Thu, 03 Nov 2011 07:01:15 +0000

Alexander Muse, CEO and co-founder was this close to selling his shopping assistant start-up ShopSavvy to a company in the search and shopping business in July when he took a moment to rethink his long-term vision for the company. After getting advice from people like Facebook co-founder Eduardo Saverin and Brad Martin, former chairman and CEO of Saks Incorporated and chairman of RBM Venture Company, he found supporters who affirmed his belief that ShopSavvy could be a transformative company that rode the changes in commerce as more people use their phones to shop.

Instead of selling to a larger company, ShopSavvy, which makes apps for Android and the iPhone, is steaming ahead on its own and is now picking up $7 million in a Series A round to help it compete, evolve and grow. Saverin leads the round and will sit on the board with new directors James Bailey and John Boyd, the COO and co-founder of ShopSavvy. Martin is also joining in the round and will serve as an advisor. The company plans to use the money to build its team, extend to the web and tablets and weave in more social features, something Saverin should be able to assist with.

“Could we be part of a bigger company at some point? Perhaps, but there’s enough of a story here to remain independent and see if we can be part of the new way that retail works,” Muse said.

Smartphones enable smart buyers

Apps like ShopSavvy are helping fuel a boom in mobile commerce, as consumers leverage their smartphones to find the best deals around and become what Om recently called smart buyers. ShopSavvy lets consumers scan bar codes to obtain product information and reviews and find the lowest price of a product online and in nearby retail stores. It runs advertising against the bar code scans and searches of users, serving up a very appealing audience of consumers ready to shop.

ShopSavvy is betting that it can be an even bigger player in the exploding mobile commerce market, which Forrester predicts will hit $31 billion by 2016, up from $3 billion in 2010. Mobile devices are expected to weigh in big this holiday season with 15 percent of total “Black Friday” searches coming from mobile devices, according to Google , which also predicted that 44 percent of total searches for last minute gifts and store locator terms will come from mobile devices.

ShopSavvy launched in 2008 after winning Google’s Android developer challenge. It’s gotten by on the prize money and $2 million provided by the founders. In its three years, ShopSavvy raced to 20 million downloads on Android and iOS and has 10 million users. ShopSavvy counts over 40,000 partnerships with retailers such as Wal-Mart, Target, Best Buy, Sears, Nordstrom and Barnes & Noble.

Mobile shoppers are appealing to advertisers

Muse said 91 percent of bar code scans happen in a retail store by consumers looking to see if there are better deals to be had. Those scans show a great intent to buy, which makes ShopSavvy an appealing place to advertise. The company makes money primarily through advertising and it fetches eCPMs, or cost per thousand impressions, of $400. Click-through rates are about 30 percent.

The ads are a way for other retail businesses to target those consumers or companies to show goods similar to the one scanned. A business which stands to lose a customer can also advertise and try to retain that user, offer them a discount or sell them on other related products.

The new reality of commerce

Smartphone apps like ShopSavvy, eBay’s RedLaser and others are forcing offline merchants to scramble. They have to cater to consumers who can quickly comparison shop right from the aisles. That forces them to price competitively and think about offering a range of services that includes not just in-store but online and mobile shopping options.

This is the reality of shopping now that consumers are able to wield smartphones like local shopping devices. We’re still early in this transition in commerce, but Muse and his new investors believe they’re perfectly positioned to take advantage of this opportunity.

“Much like the nascent days of social media, I believe the mobile shopping services market is in the very early innings of change,” said Saverin. “ShopSavvy has the right connections, the right partners and the right technology to be a game-changer.”

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The future of mobile: a segment analysis by GigaOM Pro

Mon, 26 Sep 2011 07:01:22 +0000

As our demand for data increases, so too do the number of mobile devices and services. Add to that the infrastructure needed to support such connectivity, and a wide, complex picture of the mobile industry emerges. This report examines the various sectors of the mobile landscape and what the future holds for each. Hardware, cloud services, mobile search, advertising, location-based services and the growing ubiquity of the Internet of Things will all play an important role in the concept of mobility as it shifts and evolves over the next several years. With the help of more than a dozen contributors, GigaOM Pro presents a comprehensive analysis of the companies and trends that will lead us into the next era of mobile.

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3 Things the Mobile Wallet Needs to Replace the Real One

Colin Gibbs — Wed, 16 Mar 2011 19:10:30 +0000

While I remain skeptical that mobile payments will enjoy the kind of skyrocketing usage some analysts have predicted, some key pieces are undeniably beginning to fall into place to pave the way for growth in the area. Verifone’s vow to include NFC in all its point-of-sale terminals will go a long way toward spurring retailer adoption (which so far has been nearly nonexistent), and handset manufacturers are finally buying in and beginning to package NFC in their smartphones.

But simply providing the technology for mobile payments isn’t enough — the industry still needs to offer truly compelling reasons for consumers to reach for their phones rather than their (real) wallets. The key to that will likely be in developing mobile applications that consumers actually want to use as they shop and conduct transactions.

But how do they do that? In my weekly update at GigaOM Pro, I examine several features that could entice users to make a mobile payment rather than a traditional one. Here are a few:

Integrated money management: A good mobile wallet app should enable users to track any account tied to the app, including checking and credit card accounts. This could even help users manage their finances by tracking their spending and alerting them when their bank accounts are low — or credit card balances high. That kind of functionality will force developers to work closely with financial institutions to create ultra-secure apps, but those kinds of measures are already becoming commonplace in this era of mobile banking with Mint and bank-specific apps.
Product and price information: Like ShopSavvy and other offerings, a payment app should help users find more information about a product by scanning the barcode (or by tapping a phone on an NFC chip embedded in the packaging). And it should sense location via GPS (if a user chooses to allow it) that tells users if another store nearby is selling the same item for a lower price.
Airtight security: Any new payment technology is sure to be greeted with skepticism by some consumers, so the mobile wallet must be even more secure than credit cards. Not only must financial information be ironclad, the app should be able to track purchases against the location to ensure that users are actually where purchases are being made.

For more thoughts on how to get consumers to reach for their phones at the retail counter, read the full post (subscription required).

Image courtesy of: flickr user whiteafrican.

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Are QR Codes Ready for Their Close-Up?

Ryan Kim — Tue, 19 Oct 2010 21:30:57 +0000

QR codes are still waiting for their break-out moment. But the 2D barcodes, which trigger URLs or information when scanned, continue to gather quiet momentum that could finally tap into the potential of the technology.

A recent batch of news on QR codes ties in some well-known companies and makes the process of scanning and creating codes a little more relevant and useful for users. We may be still a ways off from Japan-like QR code adoption, where it’s a mainstream tool, but the pieces are slowly falling into place. Here’s a look at some of the latest developments:

Today, Big in Japan, the company behind the ShopSavvy barcode scanner app, announced Ford, Gold’s Gym and the Washington Metro are testing QR codes through the Scan with ShopSavvy program. The program allows companies to brand their QR codes with ShopSavvy’s name so ShopSavvy’s 6.5 million users know they can use their scanner app to read the code. That should raise awareness about the codes and help people understand what to do with them, which is a major problem.
Last week, eBay-owned RedLaser added support for QR code scanning, bringing the function to its mobile app, which has been downloaded 5 million times. RedLaser is best known for enabling people to pull up information on products by allowing them to scan their barcodes. The new QR code feature can also be implemented by dozens of developers who are using RedLaser’s latest SDK to integrate scanning into their apps. With its large following, RedLaser should cause more people to scan the codes to extract not just product information, but all kinds of online data.
Earlier this month, online social stationery printing service Paperspring launched Paperlinks, which allows users to order invitations, cards and announcements that include QR codes, that can link back to a custom site with photos, videos and event information. This may not appeal to everyone, but it shows how traditional print products can incorporate QR codes.
Last month, Google formally released its URL shortener Goo.gl, which included the ability to create QR codes by adding “.qr” to the end of a shortened URL. Bit.ly followed up last week with a similar feature, allowing users to create QR codes that lead back to a link. Google has already been pushing the codes as a way to download Android apps. It also launched Favorite Places on Google, which involved distributing 100,000 QR code stickers to local businesses. The shortener tools are a simple way to make QR codes and could help ease adoption, by making people not just scanners but creators of QR codes.
In August, Spanish mobile marketing company Macanudos showed off the ability to create QR codes that trigger a Facebook “like” for an object or a place. The codes could be placed on stickers, posters or in print. This is more of a marketing play for businesses, but it shows some of power of QR codes to bridge the physical and the online worlds.

This still isn’t a definitive turning point for QR codes, which have been waiting for their time to shine for a while now and will likely take a while to mature. But the technology is coming together to create awareness around something that’s been rarely used outside of early adopters. The process of scanning is actually quite easy; it’s just we haven’t had many reasons to use them on QR codes. With these latest announcements, we may see the light at the end of this tunnel.

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