Embracing “Showrooming” Through Interactive Retail


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An increasing number of consumers today are treating the physical store like a “showroom”: trying out new products and proceeding to buy the product online at a lower price.

In this session, iQmetrix will discuss interactive retail technology and how improving the in-store experience can help to convert shoppers, initially bent on showrooming, into buyers. They will also discuss how retailers can develop an “omnichannel” experience by selling to consumers on all channels (online, mobile and in-store) simultaneously.

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  • CEO Shane Evangelist defined the problem. "What do you do as a seller of commodity-based products when you face Amazon?" he said. Because consumers can easily search for auto parts and prices using a search engine and get results from a handful of e-retailers selling identical products, the decision often comes down to price. And on that front Amazon often wins the day, Evangelist said.He said U.S. Auto Parts, No. 59 in Internet Retailer's Top 500 Guide attacks this problem in three ways. First, it offers a line of private-label products. "Amazon is really good at taking a SKU number, putting it in a search result and pricing it lower," he said. By owning the product line and not selling it on Amazon, U.S. Auto Parts  controls the pricing and margin of its private-label products.He also said U.S. Auto Parts builds relationships with parts suppliers to make sure the retailer receives product ahead of Amazon. The last part of the e-retailer's approach is to find products Amazon and other competitors aren't selling. "Go where they are not," Evangelist said. "Go analyze what competitors aren't selling and go get it."
  • Retail evolution.We went from single channel to multichannel. Omni-channel is the final step of the evolution, from a single channel to a complete and holistic experience that merges these various touch points. The omni-channel ideal is that the consumer should be able to come to the retailer from whatever touch point is appropriate to them at whatever stage in the retail process they are. So, the journey goes from single channels to multiple channels and finally omni-channel, which is the blending of these various capabilities to meet the needs of the consumers wherever they are.
  • We are evolving into omni-channel, unified and integrated customer-centric experiences.  In other words, leveraging the touchpoints — mobile, social, kiosks, store, etc, — to create a seamless experience.  Omni-channel is about giving the customer what she wants, when she wants it.
  • And probably the biggest driver of omnichannel is smartphones. Consumers will never walk out of their house without their phone. And in fact, 4 out of 5 consumers use their smartphone to shop. It’s a source of rich information but also the target of messages and promotions that you as retailers can deliver to the consumer wherever they are.
  • Although consumers like using their smartphones to do product research, when it comes to actually BUYING – most ppl still prefer going to the physical store.Therefore, the in-store experience isn’t going away – the role of the store is just changing within the retail ecosystem
  • Merging of physical and virtual worlds to create ultimate customer experience
  • Staff can use XQ to guide customers through the purchase process.
  • At iQmetrix one of the things that we really love doing is analyzing the customer’s ENTIRE wireless retail path: the BEFORE, DURING, and AFTER they enter into your wireless store – and creating a great experience for them at every touch point. We start with the ATTRACT stage – where as a retailer, you want to attract and pull people into your store – and you can do that with AdPlay and Stream.Once they’re in your store – you want to KEEP them engaged so they’ll STAY in your store – and Browse does that through engaging and educating the customer with product information, and guiding them them the decision-making process of selecting a phone. When customers are ready to BUY – their items are sent over from BROWSE to RQ, where their activation and purchase process can then be completed.After they purchase, we want to give them a reason to return to YOUR STORE, building loyalty. We fulfill that need through APPWALL – which is a prototype of a future concept that we’re working on. If you attend our panel session “The Future of Interactive Retail” later on this afternoon you’ll get to see the unveiling and be the FIRST to view a demo of APPWALL. All these in turn: create great customer experiences, boost sales efficiency, and increase sales and profit
  • Embracing new digital touch points to deliver WOW increases loyalty and drive`s profitsI said this last year, companies like apple have set a new bar has been set for in-store customer experience, and if we don’t provide it, they just have to go down the street
  • Embracing “Showrooming” Through Interactive Retail

    1. 1. Embracing “Showrooming”Through Interactive RetailPresented by Session sponsored by
    2. 2. #CCSeries13About CCS 2013 9 Webinars, 4 Days Sessions coveringMobile, Social, Store Ops,X-Channel, and more Featuring industryanalysts and consultants Free for Retail executiveswww.retailtouchpoints.com/connected-consumer-2013
    3. 3. #CCSeries13Follow The Webcast On Twitter#CCSeries13@ConnectConsumer@RTouchPoints
    4. 4. #CCSeries13About Retail TouchPoints Launched in 2007 More than 25,000 subscribers Provide executives with relevant,insightful content Free Resources such as White Papers,E-book, Webinars, Research andPodcastswww.RetailTouchPoints.com
    5. 5. #CCSeries13BrightTALK
    6. 6. #CCSeries13Today’s PanelistsJim DionFounder & PresidentDionco, Inc.Alicia FiorlettaAssociate EditorRetail TouchPointsMODERATORAllan PulgaManager of CommunicationsiQmetrix
    7. 7. How You Can Keep Your Store From Becoming AFitting Room For Internet ShoppersJamesDion
    8. 8. What Is Showrooming?shoppers who scope out merchandise in stores butbuy on rivals websites usually at a lower price
    9. 9. The Store Is, And Will Remain For SomeTime, The Channel Through WhichRetailers Receive The Largest ProportionOf Their Revenue. However,……through 2015, retail revenue from e-commercechannels is expected to grow while B&M storesrevenue will continue to shrinkChannel 2009 2013 2015B&M Stores 91.2% 87.01% 83.98%E-Commerce 5.64% 8.89% 11.45%Mail Order Catalog 1.56% 1.02% 0.94%Call Center 1.24% 1.40% 1.19%Mobile Commerce 0.09% 1.26% 1.89%Other Channels 0.35% 0.46% 0.55%n = 186 retailers)Top-Line Trends on Channel Revenue % SplitSource: Gartner
    10. 10. And Although A Low Percentage OfRevenue, M-Commerce Will Have ASignificant Impact On Cross-Channel Salesshopping via smartphone - the growing toolfor “showrooming”
    11. 11. Why Is ShowroomingHappening?customer wants in a nutshellInstant GratificationBroad SelectionCognitive DissonanceLow Price
    12. 12. Why Is ShowroomingHappening?supplier behavior in a nutshellWall Street Pressure –Growth At Any CostBrands Over-Distributed
    13. 13. Instant Gratificationspeed at all cost
    14. 14. Broad Selection
    15. 15. PriceSource: www.fluidretail.com
    16. 16. Deals Are Here To Staydeals, sales and promotions have become an expectedpart of the shopping process for consumers acrossall age groups, genders and incomes
    17. 17. As He Learned The Hard Way!
    18. 18. The Elephant In The RoomAmazon.com was the 13th largest retailer inthe U.S. in 2011, up from 19th in 2010 -expected to rank 10th this year displacingBest Buy and may surpass Wal-Mart by 2020
    19. 19. Source: www.ilsr.org
    20. 20. Why They Are Better – Everything YouWant (Broad Selection) + Deal + InstantGratificationIllustration by Peter Arkle; Cardboard Box: Judith Colling/Alamy2013 estimatesare as high as10 million
    21. 21. retailers vertically integrating and becomingproduct designers and not just product sellersGet Exclusive Products
    22. 22. exclusive products, made in the US
    23. 23. Be The First To Have Itbuild relationships with suppliers to makesure you receive product ahead of Amazon
    24. 24. Demand MAP Pricingyour win-win option
    25. 25. Seek Out „Unilateral Pricing‟Productsfor selected models – effectively showcaseinnovative products and educate consumersabout their benefits
    26. 26. Leegin Creative LeatherProducts Inc. vs. PSKS Inc.an almost level field, if your suppliers do it
    27. 27. Streamlined Sales and Use Tax Agreement(SSUTA)explain to the customer where sales taxes goSupport Mainstreet America
    28. 28. Embrace Omni-Channel
    29. 29. The „Nirvana‟http://www.loobaconsulting.com
    30. 30. Sell A Good Timetheatrical, immersive and more of a lifeexperience instead of simply a place toget something – from showrooms toplayrooms
    31. 31. technology is the answer – forexample, cash registers, a thing of thepast; associates on the sales floorequipped with hand-held devices
    32. 32. hyperlocal proximity marketing solutionTop Five Reasons toPurchase YourElectronics from BestBuy:1. Avoid ShippingFees2. Easy Return andExchange Program3. Accessible andConvenientMaintenance andCare4. Easy Financing5. Take it HomeToday!„Educate The Customer‟
    33. 33. Reward LoyaltyKiks and more – attractive and wellpublicized (airline-hotel style)
    34. 34. Promote Wiselylimited time offers; $ not % - single productcategories - GWP
    35. 35. Broaden Your Selection
    36. 36. Endless Aisles
    37. 37. Offer Click & Collect
    38. 38. buy online, pick up in store
    39. 39. Offer Online PriceMatching…Sort Ofleveling the playing field - 10-20% premiumat most
    40. 40. Best Buy, in addition to offering fast free shippingto its best customers, is matching online rivalsprices…smart? The jury is still out!
    41. 41. Even They Cannot Do It9% lower 14% lower
    42. 42. Join ShopRunner
    43. 43. Offer Trade In Services
    44. 44. And Most Importantly, EmbraceShowroomingit‟s a fact of retailfight it with service – superior service
    45. 45. Anytime, any place, anywhereWhat is Omnichannel?Seamless experience across channelsand touch points
    46. 46. Why Omnichannel?Information‐hungry,price‐savvy,and mobile‐empoweredshoppers expect a one-screen,one-store consistentexperience across retailchannels and touch points.This means a movefrom “connecting thechannels” to “blendingthe channels.”Multi-Channelthe New Norm >50% of customers make multi-channel purchasesThe Rise ofSocial Media >78% of consumers trust peerrecommendationsMobileCommerce >38%of smartphone users havemade a purchase using asmartphoneOnlineShopping >15% Growth over the last year
    47. 47. Source: comScore 2012Omnichannel is accelerated by the rapid rise of mobile shoppers4 out of 5consumers use theirsmartphone to shop
    48. 48. In-Store is Preferred Purchase ChannelYESPreferred PurchaseChannel: In-Store76%74% of shoppers that visita mobile site or app for aretailer or brand make apurchase
    49. 49. Evolving the In-Store ExperienceAirport Wireless store featuring XQ Interactive Retail Solutions
    50. 50. XQInteractive RetailMobileTakeawayEducateAttractXQ StreamXQ AdPlayEngageXQ BrowsePurchase
    51. 51. Benefits of Interactive RetailCreate Great CustomerExperiences• Create a fun, interactiveenvironment that pulls trafficin• Provide in-depth product infoto make purchase decisioneasierIncrease Sales• Present related items andpromos and centrallymanage ad campaigns• Prevent walk-outs byengaging consumers even ifsales rep is unavailableBoost Sales Efficiency• Interactive screens serve assales aid for retail staff• Provide option of self-service
    52. 52. 1 Integrate your physical and online presenceBring the best of the online experience in-store withInteractive Retail technologiesImplement innovative in-store technologies2Empower Staff3
    53. 53. www.iQmetrix.comXQ@iQmetrix.com@iQmetrixQuestions
    54. 54. iQmetrix.com | 1.866.iQmetrix© 2011 iQmetrix. All right reserved. iQmetrix, the iQmetrix logo, RQ4 and other trademarks, service marks, anddesigns referenced in this material are the exclusive property of iQmetrix Software Development Corp. and/or its subsidiaries.
    55. 55. #CCSeries13Q&A
    56. 56. #CCSeries13Q&A // PanelistsJim DionFounder & PresidentDionco, Inc.Alicia FiorlettaAssociate EditorRetail TouchPointsMODERATORAllan PulgaManager of CommunicationsiQmetrix
    57. 57. #CCSeries13www.retailtouchpoints.com/connected-consumer-2013Thank You For Joining UsALL sessions and slides areavailable on-demand at:This marks the end of the 2013 Connected Consumer Series…