'Showrooming' is a well known term amongst retailers and is causing some genuine concern for brick and mortar retailers that revenues will be hit as a result of customers being able to access online sites from mobile devices. As traditional brick and mortar stores continue to compete with online sites this Christmas, they now have additional concerns as customers go online and compare prices whilst in their shop!
Research by Foolproof found showrooming affected retailers in the run up to Christmas in 2012. During the festive period last year, 24% of all UK shoppers engaged in showrooming with 40% buying products from a competitor after comparing prices via their mobile whilst in-store and 20% simply went into a store in the first place to review a product they later planned to buy online.
Retailers must not forget that showrooming not only heats up the competition with online retailers, but also with other traditional brick and mortar stores. Foolproof found that customers that went online via their smartphone to check prices whilst in-store, would also go on to buy from other retail stores. Customers can now find a volume of information online via their mobile about products and services, and store reviews making them a much more intelligent shopper and making it that little bit more complex to compete today.
What does 'showrooming' mean for retailers this festive season?
As discussed in another article How can retailers combat showrooming? there are many ways to ensure your retail store competes successfully with online websites and other retail stores, overcoming the threat of 'showrooming'. As much as price matching would appear to be the obvious answer, it is seldom a long-term solution as traditional retail stores are more likely to have higher overheads such as rent/mortgage, utility bills and staffing.
Retailers should focus on enhancing the in-store experience they offer and make sure customer service is a top priority as well as finding ways to engage customers and develop long-term relationships. Tablets can be used by sales assistants to allow them to quickly find product information and stock availability at the touch of a button, restaurants can reduce paper production and enhance brand image by using iPads instead of menus, staff can offer personalised service for customers who would like further help and advice. Loyalty cards and targeted promotions can be used to foster long term relationships and stimulate repeat business.
At the end of the day, people like to speak to other people and be able to see and test products and services before they buy making it doubtful that retail stores will become no more. It’s also important to note that not all purchases are reviewed and planned ahead – how often have we went out to ‘have a look around’ or visit a supermarket to buy 'just bread and milk’ and come home with an armload of shopping? We mustn't forget those alluring impulse buys!
The retail store will remain an important part of the shopping experience and mobile technology such as sending a text message to a customer when they are nearby to the store with an enticing promotion will help improve sales and equipping staff with mobile devices will enhance customer service as they are able to find information more readily.
Research by Foolproof found showrooming affected retailers in the run up to Christmas in 2012. During the festive period last year, 24% of all UK shoppers engaged in showrooming with 40% buying products from a competitor after comparing prices via their mobile whilst in-store and 20% simply went into a store in the first place to review a product they later planned to buy online.
Retailers must not forget that showrooming not only heats up the competition with online retailers, but also with other traditional brick and mortar stores. Foolproof found that customers that went online via their smartphone to check prices whilst in-store, would also go on to buy from other retail stores. Customers can now find a volume of information online via their mobile about products and services, and store reviews making them a much more intelligent shopper and making it that little bit more complex to compete today.
What does 'showrooming' mean for retailers this festive season?
As discussed in another article How can retailers combat showrooming? there are many ways to ensure your retail store competes successfully with online websites and other retail stores, overcoming the threat of 'showrooming'. As much as price matching would appear to be the obvious answer, it is seldom a long-term solution as traditional retail stores are more likely to have higher overheads such as rent/mortgage, utility bills and staffing.
Retailers should focus on enhancing the in-store experience they offer and make sure customer service is a top priority as well as finding ways to engage customers and develop long-term relationships. Tablets can be used by sales assistants to allow them to quickly find product information and stock availability at the touch of a button, restaurants can reduce paper production and enhance brand image by using iPads instead of menus, staff can offer personalised service for customers who would like further help and advice. Loyalty cards and targeted promotions can be used to foster long term relationships and stimulate repeat business.
At the end of the day, people like to speak to other people and be able to see and test products and services before they buy making it doubtful that retail stores will become no more. It’s also important to note that not all purchases are reviewed and planned ahead – how often have we went out to ‘have a look around’ or visit a supermarket to buy 'just bread and milk’ and come home with an armload of shopping? We mustn't forget those alluring impulse buys!
The retail store will remain an important part of the shopping experience and mobile technology such as sending a text message to a customer when they are nearby to the store with an enticing promotion will help improve sales and equipping staff with mobile devices will enhance customer service as they are able to find information more readily.
Learn more about how retailers can enhance the mobile shopping experience or read our Retail section to find out more.
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