Showrooming: If You Can’t Beat It, Befriend It

Showrooming is a relatively new foe in town for brick-and-mortar retailers. It is eating away retail sales and business profits. If you are not familiar with the term yet, it is basically a practice wherein potential shoppers visit a brick-and-mortar store, examine a product and then use their mobile devices to see if a better price is offered at other stores or e-commerce sites. This practice is becoming common with time, which means it is here to stay for a while.

Let’s talk stats to see how showrooming is posing a threat to brick-and-mortar retailers:

• A report from Teradata (a marketing software subsidiary Aprimo) and Forrester Research shows that more than half of consumers report finding lower prices over the web than in store. Thirty-three percent use this information to buy the product elsewhere.
• A report published in Denver Post shows that retailers lose as much as $217 billion a year in missed sales from showrooming customers.

Counter Strategy That Backfired

To counter this practice, some retailers tried disabling Wi-Fi service in their stores to keep shoppers from browsing. This approach did not last for long and retailers had to discontinue it because turning off Wi-Fi did not stop consumers from browsing. Since most mobile users have data plans in their phones, they can surf the web regardless of their location.

Time to Convert the Threat into an Opportunity: Use Showrooming to Your Advantage

If you can’t beat them, join them. Likewise it’s time that you use showrooming to your advantage instead of looking at it as a threat. The truth of the matter is that it is not a fad and it will likely no be going away any time soon; quite the opposite, it is likely to become more popular with time. The point, then, is to acknowledge and accept this phenomenon and use it to your advantage to minimize negative impact.

Here are some of the best ways to leverage showrooming for your retail success:

• Price Match: The most obvious way to give a good run to the competition is a price match. Last year, Target announced that they would start price matching online competitors, even the big ones, such as Amazon, Walmart, BestBuy and Toys R Us. BestBuy took this concept a step further by matching with a greater selection of online competitors and physical stores within a 25 mile radius. They claim that price matching worked to their advantage. You can try it, but it is important to understand that this might not work for every business and depends on where your price points are. In addition, it may only workable as a short-term strategy as it may override your overhead costs.
• Invest in a Mobile-Optimized Site and Mobile Apps: Direct your customers to your own mobile site and app through in-store Wi-Fi where you can offer both product information and reviews. This will reduce the likelihood of a customer landing on a competitor’s e-commerce site. Also, make sure your site is optimized for all types of mobile platforms, including tablets, phablets, and smart phones.
• Keep Your Website Up-to-Date: Make sure that your site prices match those offered in your store and are also competitive. You can also consider offering printable coupons and rebates that can be used in your store to encourage customers to buy from your retail store.
• Deliver the Ultimate in-store Experience by Offering in-store Giveaways and Promotions: In-store promotions, exciting discounts for retail customers and special giveaways are enticing for shoppers. They would love to come to your store and find deals that allow them to save money.

Never Forget the First Rule of Customer Service

Offer the one thing that can’t be found on a mobile search: In-person customer service. Make sure your staff is well-trained to offer the best in-store experience possible. Remember, a pleasant shopping experience goes a long way, especially for those who love traditional shopping.