Shopping 2.0: you can save online and in the high street

Internet shopping took a massive public relations hit atChristmas, with many firms simply unable to deliver on time thegoods they promised. But that won't stop bargain-hunters usingtechnology to hunt down the best deals. In fact, smart shoppers arepoised to be offered even more targeted opportunities for deals anddiscounts in 2011.

We all like to get a bargain and the internet has long offeredkeener prices and convenience. As part of that, there has been aplethora of discount voucher sites in recent years, while thebiggest shopping trend of last year was the phenomenal growth ofgroup buying. The next buzzwords, according to one firm, are"permission marketing".

"The future of shopping is not so much 'search' as it is 'find',"says Justin Basini, co-founder of ALLOW, a company which claims toput people back in charge of their personal data. "The internet hasbasically evolved to the point that technology will find what youwant, even at a price you want, rather than you having to do the legwork. This means you get more customisation and retailers making youoffers based on who you are."

But making the most of this means telling retailers what you areinterested in which, in theory, will allow them to only offer youdeals that you want to know about rather than bombarding you withevery discount and offer there is. This is where permissionmarketing comes in, says Basini.

Signing up with his firm will let you opt out of marketingdatabases and only let the companies you want to do business withhave access to your personal information, he claims. The companymakes its money by taking your information and selling it to theright firms. In return, you should be offered only deals thatinterest you. "Consumers set their preferences and permissions, sitback and wait for the right type of products and services to come tothem," says Basini. If it works, it could be a great boon toshoppers.

But as seasoned bargain-hunters know, few of the great deals thatthe internet and new technology has offered have actually come tofruition. Take discount vouchers. While sites such as MyVoucherCodesare full of offers, there is often a frustrating lack of deals forthe particular website you want to buy from, or you may simply beineligible for them.

For instance, the site currently has an exclusive deal withSainsbury's offering 15 off if you spend 75. However, the offer isavailable only to new customers. It may be for that reason that thesite's founder believes that mobile phones are the way to get dealsto people.

"The future of shopping is very much mobile," says Mark Pearson,the chairman of MyVoucherCodes. "Shoppers are increasingly seekingmore convenient means of finding the best deals available to them;with a range of apps available on smartphones allowing them to doso."

The company launched its iPhone app in December and had more than50,000 downloads between Christmas and new year alone. It uses GPStechnology to allow shoppers to instantly see what discounts areavailable to them locally. To claim a discount, you normally have tojust show it on your phone screen when you buy. A similar service isoffered by Voucher Cloud, and experience suggests that being offereda two-for-one deal there and then by a nearby restaurant is likelyto encourage you to take up the offer.

Where the new money-saving technology can go wrong is when itencourages you to snap up special offers you might not haveotherwise bought. In truth buying a "bargain" to save money in thesecircumstances is actually overspending. Take the group buyingwebsites, such as Groupon, Keynoir and LivingSocial. Their conceptis that by buying together, a group of people can get massivediscounts of up to 70 per cent.

In practice, many of the offers are for spas and restaurants thatyou may simply not have otherwise used, or the deals. Would you pay14 for a wine-tasting event in Westminster, for instance? Or 17.50for two luxury teas delivered to your home? Or 19.50 for a meal at aSouth African restaurant? Those deals promised discounts of 71 percent, 50 per cent and 63 per cent respectively, but the danger isthat people are buying only for the perceived saving.

"Discounts and deals are good, but they have to be relevant,"says Basini. He is right. On the one hand, signing up for emails anddownloading apps detailing deals is fine, but avoiding thetemptation to buy, buy, buy is important. If permission marketingcan cut down on the wasted spending, it will be welcomed.