The smart phone has truly become a mobile extension of the online shopping experience. 

It has changed online shopping behavior by adding mobility and immediacy.  The in-store experience is blending together with the benefits of on-line shopping, in real-time.  Applications such as Google Goggles or RedLaser  accelerate the ability to compare features and prices from a smart phone, product ratings based on all sorts of criteria are now available real-time on a smart phone through applications like GoodGuide , and smart phone applications which enable real-time recommendations from a consumer’s social network are now launching.  Consumers can experience a product at a retailer, and then buy the product from the website of another retailer in real time. 

Intersecting elements of the fundamental value proposition of mobile (e.g. it moves with you, it connects you, it can tell others where you are, it supports rich media experiences, it has immediacy…) and social media (e.g. it’s authentic, it’s relevant, it’s personalized, it scales, it’s opt-in….) will result in an unparalleled pursuit of the monetization of social-centric mobile commerce applications.

Having access to a consumer with knowledge of information like who they are, where they are, what they like, what they own, what they want to own, who they listen to for advice, where they shop and how they like to receive information and offers represents an unbelievable opportunity.

Recent research from InsightExpress   surveyed the intended shopping behavior of smart phone owners. Study data reveals that during this holiday season, 29% of all smart phone owners intend to use their device to compare prices, 23% for product reviews, 22% for sales alerts and 20% to search for products at another store. Shoppers also plan to make use of additional features such as barcode scanning  (19%) and mobile couponing (19%).  34% plan to take pictures of products in store and 25% plan to send pictures to other people to solicit opinions.  According to Google’s retail advertising blog  “while m-commerce (buying over phones) is still small, shoppers plan to use smart phones during Holiday 2010 by comparing prices, locating retailers, looking for promotions, etc.”

There are still technology issues to work out (e.g. robustness of location based services, viability of mobile sharing technologies, interoperable networks to support rich media, application interfaces…), business issues to work out (e.g. how to monetize, how to deliver accurate and actionable database analytics, privacy…) and societal issues to work out. A failure may result in feeling the amplified wrath of the same socially networked consumer a company is trying to engage.

We’re in a classic technology adoption curve with the early adopters from both retailers and consumers jumping in. Ultimately, consumers will define how they want to be engaged, challenges will be overcome and it will all get figured out. Combine location-based services inherent in smart phones with savvy retailers, and a new world of local, targeted, personalized, crowd-sourced, rich-media offers sent real-time to smart phones will emerge and further revolutionize the online shopping experience. 

Not to mention redefine the impulse buy.