Embracing “Showrooming” Through Interactive Retail
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This document discusses how retailers can embrace "showrooming" and use interactive retail to engage customers in stores. It describes showrooming as customers scoping out items in physical stores but purchasing online. To address this, the document recommends that retailers use in-store technologies like interactive screens and mobile apps to provide information, attract customers, and allow purchasing. This creates better experiences, increases sales by engaging customers and preventing losses, and boosts staff efficiency. Retailers should integrate physical and online presences by bringing the online experience into stores with these interactive technologies.
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Embracing “Showrooming” Through Interactive Retail
- 1. Embracing “Showrooming” Through Interactive Retail Presented by Session sponsored by
- 2. #CCSeries13 About CCS 2013 9 Webinars, 4 Days Sessions covering Mobile, Social, Store Ops, X-Channel, and more Featuring industry analysts and consultants Free for Retail executives www.retailtouchpoints.com/connected-consumer-2013
- 3. #CCSeries13 Follow The Webcast On Twitter #CCSeries13 @ConnectConsumer @RTouchPoints
- 4. #CCSeries13 About 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 and Podcasts www.RetailTouchPoints.com
- 6. #CCSeries13 Today’s Panelists Jim Dion Founder & President Dionco, Inc. Alicia Fiorletta Associate Editor Retail TouchPoints MODERATOR Allan Pulga Manager of Communications iQmetrix
- 7. How You Can Keep Your Store From Becoming A Fitting Room For Internet Shoppers JamesDion
- 8. What Is Showrooming? shoppers who scope out merchandise in stores but buy on rivals' websites usually at a lower price
- 9. The Store Is, And Will Remain For Some Time, The Channel Through Which Retailers Receive The Largest Proportion Of Their Revenue. However,… …through 2015, retail revenue from e-commerce channels is expected to grow while B&M stores revenue will continue to shrink Channel 2009 2013 2015 B&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 % Split Source: Gartner
- 10. And Although A Low Percentage Of Revenue, M-Commerce Will Have A Significant Impact On Cross-Channel Sales shopping via smartphone - the growing tool for “showrooming”
- 11. Why Is Showrooming Happening? customer wants in a nutshell Instant Gratification Broad Selection Cognitive Dissonance Low Price
- 12. Why Is Showrooming Happening? supplier behavior in a nutshell Wall Street Pressure – Growth At Any Cost Brands Over-Distributed
- 13. Instant Gratification speed at all cost
- 14. Broad Selection
- 16. Deals Are Here To Stay deals, sales and promotions have become an expected part of the shopping process for consumers across all age groups, genders and incomes
- 17. As He Learned The Hard Way!
- 18. The Elephant In The Room Amazon.com was the 13th largest retailer in the U.S. in 2011, up from 19th in 2010 - expected to rank 10th this year displacing Best Buy and may surpass Wal-Mart by 2020
- 20. Why They Are Better – Everything You Want (Broad Selection) + Deal + Instant Gratification Illustration by Peter Arkle; Cardboard Box: Judith Colling/Alamy 2013 estimates are as high as 10 million
- 23. retailers vertically integrating and becoming product designers and not just product sellers Get Exclusive Products
- 24. exclusive products, made in the US
- 25. Be The First To Have It build relationships with suppliers to make sure you receive product ahead of Amazon
- 26. Demand MAP Pricing your win-win option
- 27. Seek Out „Unilateral Pricing‟ Products for selected models – effectively showcase innovative products and educate consumers about their benefits
- 28. Leegin Creative Leather Products Inc. vs. PSKS Inc. an almost level field, if your suppliers do it
- 29. Streamlined Sales and Use Tax Agreement (SSUTA) explain to the customer where sales taxes go Support Mainstreet America
- 33. Sell A Good Time theatrical, immersive and more of a life experience instead of simply a place to get something – from showrooms to playrooms
- 34. technology is the answer – for example, cash registers, a thing of the past; associates on the sales floor equipped with hand-held devices
- 35. hyperlocal proximity marketing solution Top Five Reasons to Purchase Your Electronics from Best Buy: 1. Avoid Shipping Fees 2. Easy Return and Exchange Program 3. Accessible and Convenient Maintenance and Care 4. Easy Financing 5. Take it Home Today! „Educate The Customer‟
- 36. Reward Loyalty Kiks and more – attractive and well publicized (airline-hotel style)
- 37. Promote Wisely limited time offers; $ not % - single product categories - GWP
- 39. Endless Aisles
- 40. Offer Click & Collect
- 41. buy online, pick up in store
- 42. Offer Online Price Matching…Sort Of leveling the playing field - 10-20% premium at most
- 43. Best Buy, in addition to offering fast free shipping to its best customers, is matching online rivals' prices…smart? The jury is still out!
- 44. Even They Cannot Do It 9% lower 14% lower
- 45. Join ShopRunner
- 46. Offer Trade In Services
- 47. And Most Importantly, Embrace Showrooming it‟s a fact of retail fight it with service – superior service
- 52. Anytime, any place, anywhere What is Omnichannel? Seamless experience across channels and touch points
- 53. Why Omnichannel? Information‐hungry, price‐savvy, and mobile‐empowered shoppers expect a one-screen, one-store consistent experience across retail channels and touch points. This means a move from “connecting the channels” to “blending the channels.” Multi-Channel the New Norm >50% of customers make multi- channel purchases The Rise of Social Media >78% of consumers trust peer recommendations Mobile Commerce >38% of smartphone users have made a purchase using a smartphone Online Shopping >15% Growth over the last year
- 54. Source: comScore 2012 Omnichannel is accelerated by the rapid rise of mobile shoppers 4 out of 5 consumers use their smartphone to shop
- 55. In-Store is Preferred Purchase Channel YES Preferred Purchase Channel: In-Store 76% 74% of shoppers that visit a mobile site or app for a retailer or brand make a purchase
- 56. Evolving the In-Store Experience Airport Wireless store featuring XQ Interactive Retail Solutions
- 60. XQInteractive Retail Mobile Takeaway Educate Attract XQ StreamXQ AdPlay Engage XQ Browse Purchase
- 61. Benefits of Interactive Retail Create Great Customer Experiences • Create a fun, interactive environment that pulls traffic in • Provide in-depth product info to make purchase decision easier Increase Sales • Present related items and promos and centrally manage ad campaigns • Prevent walk-outs by engaging consumers even if sales rep is unavailable Boost Sales Efficiency • Interactive screens serve as sales aid for retail staff • Provide option of self- service
- 62. 1 Integrate your physical and online presence Bring the best of the online experience in-store with Interactive Retail technologies Implement innovative in-store technologies2 Empower Staff3
- 64. iQmetrix.com | 1.866.iQmetrix © 2011 iQmetrix. All right reserved. iQmetrix, the iQmetrix logo, RQ4 and other trademarks, service marks, and designs referenced in this material are the exclusive property of iQmetrix Software Development Corp. and/or its subsidiaries.
- 65. #CCSeries13 Q&A
- 66. #CCSeries13 Q&A // Panelists Jim Dion Founder & President Dionco, Inc. Alicia Fiorletta Associate Editor Retail TouchPoints MODERATOR Allan Pulga Manager of Communications iQmetrix
- 67. #CCSeries13 www.retailtouchpoints.com/connected-consumer-2013 Thank You For Joining Us ALL sessions and slides are available on-demand at: This marks the end of the 2013 Connected Consumer Series…
Editor's Notes
- 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