A Retailer’s Guide to Combatting Showrooming
It's no secret that the convergence of the online and in-store worlds has resulted in new shopping practices, some which should be of concern to brick-and-mortar retailers. Perhaps the most feared practice is "showrooming," the act of browsing in a traditional brick-and-mortar store before going online to find and buy that item at a lower price.
A practice such as this can be a huge threat to brick-and-mortar retailers — if they choose to let it. Consumers’ purchase decisions don't all come down to price. Brick-and-mortar retailers have an integral advantage over their online-only counterparts: the opportunity to generate exceptional and well-rounded in-store experiences. Pair this with tactics such as social media and mobile marketing, and retailers will see that technology can help, rather than hinder, their business.
Treat Technology as a Partner, Not a Competitor
The intersection of social and mobile technologies is critical for consumers and, in turn, for retailers. According to research from Empathica, 82 percent of consumers are willing to engage retail brands in online conversations if they believe it will improve a future experience, they simply need a platform through which to do so. By providing in-store opportunities for consumers to engage in social conversations about brands, retailers can not only add value to the shopper's experience, but also promote brand loyalty for purchases that follow.
Leading retailers take advantage of third-party apps and mobile-optimized websites that encourage these in-store interactions. Successful retailers are also leveraging tactics such as push notifications, QR codes and in-store-only promotions to create value in the physical store environment. Combining online and offline elements such as the ability to order online and pick up in-store is also a popular option among consumers looking to get the best of both the online and offline experiences.
Show What You Know
While convenience and price are the selling points for e-tailers, brick-and-mortar retailers have the ability to create unified customer experiences that add value through a careful and strategic combination of product, environment and service. The personal touch, which is a key driver of customer loyalty and brand advocacy, is very difficult for online retailers to replicate, so physical store owners should take advantage of their ability to create tailored customer experiences. This can be achieved through meaningful employee interactions and helpful suggestions.
A simple but thoughtful suggestion of a complementary item to the purchase the customer is already making goes a long way to enhancing the experience in-store as well as having a significant impact on basket size. Retailers need to ensure that their hiring process targets people who have the ability to connect with customers at an emotional level. They must be able to add to the overall experience with the brand rather than coming across as pushy or overbearing.
Nurturing and developing staff is critical to a brand's ability to connect with customers in-store. Caring for employees through internal programs aimed at boosting morale not only increases productivity, but also improves customer interactions. Empathica found that only 38 percent of consumers think that employees at big-box retailers enjoy their job, despite the fact that employee satisfaction directly relates to a brands’ ability to generate exceptional customer experiences. This highlights a big opportunity for store managers since an important driver of employee satisfaction is their relationship with their direct supervisor. It's particularly critical for store managers to be attuned to the coaching needs of their staff, as this has a direct impact on customer perceptions of the shopping experience.
Rather than chalking up the showrooming phenomenon as a loss, brick-and-mortar retailers should view this trend as an opportunity to embrace the advantages of the in-store experience. Engage with customers via the social channels they're using to forge a better cross-channel connection to your brand. The key for retailers is to focus on the unique attributes of brick-and-mortar shopping to drive long-term loyalty and advocacy among their customers.
Gary Edwards is the chief customer officer at Empathica. Gary can be reached at gedwards@empathica.com.