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(AdExchanger, 2012)
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First, a couple definitions.
Showrooming:
Looking at a product in a retail store, and then shopping for and buying the
product online.
Webrooming:
Researching products/retailers online, and then going to the retail store to
make a purchase.
During the last few years, retailers
have worried about showrooming, as more and more shoppers utilize their mobile
devices to perhaps find better deals elsewhere, including Internet retailer
sites. However, many are now questioning the assumed negative impact of such consumer
behavior. When shoppers use their mobile devices in a brick-and-mortar store,
are they really taking their business somewhere else, or could such devices
actually be helping the traditional retailer – especially if retailers
facilitate, instead of discourage the digital shopping companion?
A recent study indicated that mobile
devices had an influence on 19% of in-store business/sales last year – which
translates to a retail value of about $593 billion. When transactions on all
digital devices are considered (PCs), the value increases to more than $1
trillion. Further, based on the current rapid growth rates, it is predicted
that the influence of digital devices on business will reach $1.5 trillion by
the end of this year – or about 50% of in-store sales (Deloitte Development LLC, 2014).
While some consumers certainly participate
in showrooming, there is evidence that just as many consumers, if not more, are
doing what is now called webrooming. It appears that a growing number of
consumers are finding their product and retailer research information online, and
then heading to the off-line store to make their purchase (Gustafson, 2014). A recent study also showed
that the sales conversion rates go up when shoppers utilize digital devices
(mobile or otherwise) before or during their shopping activity. In fact, according
to the study, the normal rate of conversions for in-store sales when no digital
devices are used is about 60%. However, when digital devices were utilized
prior to or during shopping, the conversion rate jumps to as much as 78%. When
digital devices are used both before
and during the in-store shopping process, the conversion increases to an
impressive 84% (Deloitte Development LLC, 2014).
The point is that brick-and-mortar
retailers should not worry about, or discourage the use of mobile devices in
their stores, as many shoppers are simply using the devices to gather more
information, see what others are saying about a product, and so on. Instead,
retailers should embrace the growing mobile digital reality, and work to
integrate their in-store and online marketing activities. Providing free Wi-Fi within
the store to allow shoppers to easily browse online would be a great start.
Additionally, why not add some in-store signs suggesting that shoppers go
online to find additional information about a product, or read product reviews.
Enhanced digital access to aid in the shopping process is what an increasing
number of consumers are looking for – so, why not give it to them? Such
activities can build customer loyalty, and provide a competitive advantage over
the retailers that still have sad signs up that prohibit shoppers from using
smart phones in the store? It only makes good business sense to be on the digital
offensive side – and not to keep trying to play digital defense!
References
AdExchanger. (2012, May 4). Showrooming. Retrieved
from AdExchanger:
http://www.adexchanger.com/comic-strip/adexchanger-showrooming/
Deloitte Development LLC. (2014, April 28). Deloitte study:
digital influences more than $1 trillion in retail store sales. Retrieved
from Deloitte: http://www.deloitte.com/view/
en_US/us/press/Press-Releases/e051ee4e0e395410VgnVCM1000003256f70aRCRD.htm
Gustafson, K. (2014, April 28). The $1.5 trillion
opportunity retailers overlook. Retrieved from CNBC:
http://www.cnbc.com/id/101611505
