Why Consumers Showroom

“Showrooming” has been a major fear for many retailers.  The main reasons why consumers turn to mobile assistance are convenience and speed.  These two things can help build your brand through mobile but it also gives your competitors the ability to pilfer your most prized possession – your customers.  New research is out that examines why consumers showroom.  This can help you develop strategies to combat “showrooming” and create a strategy that helps you leverage mobile.

shutterstock_98997599• Lower prices are the number one reason consumers “showroom” – nearly 70% said it was their top motivator

• Nearly half said free shipping

• Almost 30% said that they had always planned on buying the item online – never considered buying it in-store

• 25% said that they prefer to get the item at home

• 21% said they bought online because the store was out of stock

• 18% said they bought online because of rewards or discounts through loyalty programs

• 17% said it was inconvenient to go to the store and 16% said lack of taxes pushed to buy online

• Less than 10% of consumers gave reasons such as better customer service and return policies online, they had negative in-store experiences in the past and they trusted the online retailer more than the brick & mortar

What Does This Mean To You?

The biggest thing to jump out is that three-quarters of shoppers are open to or are fully expecting to buy in-store.  Only 27% had no intention of making the purchase in-store.
Your loyalty program can help you overcome many of other hurdles that drive shoppers to buy via mobile device or online when they get home.  Free shipping has become one of the main things that sway shoppers to one store or another.  If you can’t offer free shipping on everything, you may wish to offer free shipping with a certain spending level or over discounted expedited shipping.  A consumers customer service experience may have a great deal to do with whether they complete the sale online or in-store.  Promote why your customer service is better.  Be sure to also go over your return policy and what makes it better.  The more that you can do, the better chance you have to keep a large portion of that near 70% that intend to shop in-store.  In fact, good customer service may help you convert some of that 27% that always planned to shop online.  Tomorrow we’ll go over information on why consumers prefer to buy in-store. For more on gaining mobile success,, please contact
Al Fiala
amfiala@gmail.com

Source: Columbia Business School

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