Showrooming is a consumer shopping tactic that has become increasingly common in the last few years and has had a significant impact on retailers. While customers have grown accustomed to mobile shopping and online spending, showrooming is a practice where customers browse in-store products at local retailers only to purchase them later online, threatening the sales volume of brick and mortar businesses.
According to a study by Gartner, 60% of consumers surveyed deliberately visited a retail store to view products and gather additional information with the intention of purchasing the product from an online outlet.
Technology products, including cellphones and laptops, as well as small appliances and home improvement products are among the products most often subject to this practice.
To counter the threat of showrooming, retailers can follow these tips:
Offer unique products- If your business prides itself on unique, exclusive products, customers will be more likely to purchase the product in your store. Having unique products will attract customers and make your retail business stand out.
Price match- An effective way to get customers to buy the product from your store is if you match the product price with other competitive stores. Customers are continuously looking for the lowest prices, therefore many big box stores have started using this tactic to keep their customers and continue increasing sales.
Offer excellent customer service- To attract repeat customers, retailers should focus on providing exceptional customer service. If they are able to kindly assist their customers and help them with their needs, customers will be more willing to purchase products from them. In-store representatives can also be trained to facilitate the sales process, leading the customer through the funnel rather than letting him or her browse and bounce.
Use marketing incentives to reward in-store shoppers- Use social media and other marketing platforms to offer incentives for customers who go into your stores. For example, if a user “checks-in” at the retailer using Foursquare, the retailer can offer that person a reward. Or, you can use couponing to offer discounts for in-store purchases only. By tracking customer information and spending habits, Harbortouch POS reporting technology can also help you provide incentives to your most loyal in-store shoppers or can help you target the customers who don’t stop in as often.