US startup, Shop O Lot, has raised $500,000 (£312,000) to develop a retail mobile shopping app to help retailers keep their customers in the store shopping.

Shop O Lot was founded by internet veterans, CEO Bob Pack and CTO Andreas Hjelming. The team members come from AOL, Microsoft, Oracle and NetZero. Company backers include Roger Smith former CEO of Silicon Valley Bank, Dan Udoutch former EVP of Commerce One, and Shop O Lot founder, Bob Pack.

Shop O Lot is a self-service platform which, the company says, makes major retailer participation very easy. The model is based on a predictive analysis engine, that builds a customers shopping profile, then allows retailers to reach these customers in real-time, while they are shopping. “We dont ask for any sensitive data; its all collected passively,” says Pack.

The Shop O Lot engine calculates real-time product recommendations and discounts for consumers so that they receive products and deals of high interest. A suite of behavioral analytics is also offered to retailers. The app uses GPS and barcode scanning to deliver the content Snd will available on iOs and Android OS platforms.

“Major retailers are now competing with product search and comparison apps that can actually drive a customer to buy from a competitor, a practice known as ‘scan and scram’” says Pack. “We have a complete solution to really help drive retail purchases. This goes well beyond mere geo-location and focuses on individual target marketing. Once we understand the shoppers tastes, delivering them customized product deals, only from the store they are in, will help keep shoppers loyal.” 

Shop O Lot is currently in a test phase and will launch later in 2011 The company is accepting beta tester sign-ups on its website.