As the popularity of shopping apps and showrooming rise, retailers continue to face unfamiliar challenges. But for those willing to venture into uncharted territory, the opportunities for success in the new retail landscape are huge. According to this latest parago research report, shoppers are more than eager to BOPIS (Buy Online, Pickup In Store), BISBO (Buy In Store, Buy Online) and adopt other desirable behaviors when presented with the right offers at the right time.
According to our findings:
• the top 2 reasons shoppers buy online are convenience and price
• 64% of shoppers already BOPIS
• 82% of shoppers would BOPIS for a $10 rebate on a $50 purchase
• 61% of shoppers would BISBO within 2 weeks if a $10 rebate doubles to $20 on a $35+ purchase
What you need to know about Buy Online Pick-up In Store (BOPIS).
Major statistics about consumer preferences and performance of retailer's BOPIS Programs.
Are you omnichannel?
Voici la 6ème édition complète (les 5 volumes) de l'étude annuelle UPS Pulse of Online Shopper™. Développée en partenariat avec comScore et Astound Commerce, cette étude vise à fournir des informations sur les comportements et les préférences des acheteurs en ligne. Les 5 volumes sont réunis en un seul (Digital Evolution, a Mobile Mindset, Channel Dynamics, the Savvy Shoppers & Retail Fundamentals.). C'est une bible pour mieux connaître les comportements des acheteurs. Bonne lecture !
What you need to know about Buy Online Pick-up In Store (BOPIS).
Major statistics about consumer preferences and performance of retailer's BOPIS Programs.
Are you omnichannel?
Voici la 6ème édition complète (les 5 volumes) de l'étude annuelle UPS Pulse of Online Shopper™. Développée en partenariat avec comScore et Astound Commerce, cette étude vise à fournir des informations sur les comportements et les préférences des acheteurs en ligne. Les 5 volumes sont réunis en un seul (Digital Evolution, a Mobile Mindset, Channel Dynamics, the Savvy Shoppers & Retail Fundamentals.). C'est une bible pour mieux connaître les comportements des acheteurs. Bonne lecture !
Showrooming is a new reality that most retailers and marketers are seeking to understand and address. Research from the Vibes 2013 Mobile Consumer Report: Combat Showrooming with Personalization shows that personalization can help retailers combat showrooming.
People have changed the way they purchase things. Rather than going to the nearest store to research and make a purchase, customers now prefer to research online and then buy in-store, or vice versa. With the increasing popularity and use of mobile technology, people expect buying things from wherever they are and whenever they want to.
2016 the tipping point for retail e commerce in mexicoJaume Sués Caula
With more Mexican consumers using the Internet
and smartphone costs dropping, the time has come
to bring the online shopping experience up to
international standards. Retailers that succeed
could see enormous sales.
In this presentation, we summarize the key highlights of our paper, which (1) Debunk the myth that Mexico’s E-Commerce growth is limited due to poor logistics/internet infrastructure and low credit card penetration, and (2) Identify the real challenges for E-Commerce in Mexico and present some of the opportunities for retailers in Mexico.
Fashion eCommerce Infographic and Online Shopping and Fashion Spending
As New York Fashion Week comes to an end, and Toronto is gearing up for Toronto Fashion Week it seemed only appropriate to create an eCommerce Fashion Infographic. This infographic looks at how the fashion industry is growing significantly online. Check out the infographic below to learn more about eCommerce fashion trends.
E-commerce voor Uitgevers Nationale uitgeefdag 2014 Marileen Kan
Hoe shopt de consument in 2020? En hoe spelen uitgevers hierop in? Wat maakt uitgeven en e-commerce succesvol? Axel Groothuis partner bij Eurogroup Consulting en betrokken bij onderzoeksprogramma Shopping2020 gaf deze presentatie op de Nationale Uitgeefdag 2014.
Think Retail - print's role in the retail market of todayCanon Belgium
Innovation in retail and print's role in the retail market of today
The evolution of retail
Consumer psychologies
Connected consumers
Innovation
Where’s the opportunity for print?
How can PSPs get started?
Showrooming is a new reality that most retailers and marketers are seeking to understand and address. Research from the Vibes 2013 Mobile Consumer Report: Combat Showrooming with Personalization shows that personalization can help retailers combat showrooming.
People have changed the way they purchase things. Rather than going to the nearest store to research and make a purchase, customers now prefer to research online and then buy in-store, or vice versa. With the increasing popularity and use of mobile technology, people expect buying things from wherever they are and whenever they want to.
2016 the tipping point for retail e commerce in mexicoJaume Sués Caula
With more Mexican consumers using the Internet
and smartphone costs dropping, the time has come
to bring the online shopping experience up to
international standards. Retailers that succeed
could see enormous sales.
In this presentation, we summarize the key highlights of our paper, which (1) Debunk the myth that Mexico’s E-Commerce growth is limited due to poor logistics/internet infrastructure and low credit card penetration, and (2) Identify the real challenges for E-Commerce in Mexico and present some of the opportunities for retailers in Mexico.
Fashion eCommerce Infographic and Online Shopping and Fashion Spending
As New York Fashion Week comes to an end, and Toronto is gearing up for Toronto Fashion Week it seemed only appropriate to create an eCommerce Fashion Infographic. This infographic looks at how the fashion industry is growing significantly online. Check out the infographic below to learn more about eCommerce fashion trends.
E-commerce voor Uitgevers Nationale uitgeefdag 2014 Marileen Kan
Hoe shopt de consument in 2020? En hoe spelen uitgevers hierop in? Wat maakt uitgeven en e-commerce succesvol? Axel Groothuis partner bij Eurogroup Consulting en betrokken bij onderzoeksprogramma Shopping2020 gaf deze presentatie op de Nationale Uitgeefdag 2014.
Think Retail - print's role in the retail market of todayCanon Belgium
Innovation in retail and print's role in the retail market of today
The evolution of retail
Consumer psychologies
Connected consumers
Innovation
Where’s the opportunity for print?
How can PSPs get started?
Great white paper report published by St. Joseph Communications on Omni-channel advertising focused around providing solutions to retailers and brands.
eCommerce appetite and adoption is at an all-time high.
If there was ever any uncertainty as to whether there was sufficient demand for grocery eCommerce, new research has put an end to any doubts, and has provided answers to the question that’s currently top of all retailers’ minds: Should we be selling our products online?
Mercatus has released the results from a survey conducted in the first quarter of 2016 in a brand new report entitled “Insights into Grocery eCommerce 2016”.
Among the key findings in the report:
Your customers, regardless of age, are online, consider themselves to be technologically savvy, and are making more digital purchases than ever before.
Consumers are willing to order groceries from locations other than their favorite store for the convenience of click-and-collect shopping.
parago’s third annual shopper study, “Let’s Make a Deal,” reveals that deal seeking has grown significantly in the past year. It is now a behavior consistently seen in shoppers from all demographics. Deal seeking is no longer just trendy or born completely out of necessity. Shoppers continue to seek out the very best prices and are willing to go out of their way to save even a little bit.
parago creates engaging solutions that inspire actions & impact results
As the most comprehensive single-source provider of incentives and engagement,
we deliver $2 billion in rewards to 50 million people worldwide each year using our
advanced technology. Our relentless focus on innovation drives better results,
making us the smart choice.
• consumer rebates & promotions
• employee rewards & recognition
• sales & channel management
• energy efficiency incentives
A white paper investigating the "conditional buying" shopping phenomenon and related consumer behaviorial changes and retail innovations in subscription commerce, personal e-stylists, and over-ordering.
Future Shoppers Report es una investigación elaborada por Samsung UK que hace hincapié en consumidores de 16-24 años, tendencias, preferencias, gustos, ¿qué es lo que buscan?
Omni Channel Business Trend: an Opportunity to Grab Our Customer BusinessJeffrey BAHAR
STAR event was held to give an appreciation for top 50 Samsung's Handphone Retailers across Indonesia. Spire, along with Google and Kadence, was invited to STAR event to share their knowledge and applicable strategy to improve offline handphone retail business. Spire Indonesia Senior Manager, Albertus Edy shared the importance of offline to online (omni-channel) strategy to the retailers.
He said the online retailing has not completely shift the purchase behaviour, since most of the purchase activities are still found in offline retail stores. However, business adaptation to bring multi-channel experiences would be a significant advantage in current competition. Available at anywhere and accessible at anytime are the concept of Omni-channel that is urgently required.
The Charitable Economy is Thriving
Point-of-Sale charitable campaigns are alive and well. According to America’s Charity Checkout Champions Report, over 77 groups with million-dollar point-of-sale campaigns raised $388 million in 2014, and over $3.88 billion throughout the last three decades.
However, with advancements in technology, the continued rise of online shopping and current campaign saturation in the marketplace, how should we evolve this decades-old fundraising tactic to thrive successfully in 2020 and beyond?
Catalist conducted an online consumer research study in April 2016 of over 1700 Americans aged 18 and older.
Participants were of varying gender, geographic location, economic status and ethnicity. The margin of error associated with the total sample 2.5% with a 95% level of confidence.
The Results: inspiring, thought-provoking and groundbreaking. To us, they unveil five key revelations that will fuel progressive charitable campaigns at the register.
How Seamless are You?
Accenture went on a journey to understand consumer preferences to shop seamlessly across channels
and the ability of retailers to deliver that seamless experience.
The connected shopper. Fallacy fad or reality?Simon Etchells
Does the connected shopper really exist? Is ominchannel a trend or the future?
As the line between physical and digital begins to blur, what is the role, relevance and importance of the various channels in “omni channel”? With examples, case studies and insights I explore what the connected shopper paradigm means for now and the future.
Similar to BOPIS & BISBO will propel retail into orbit (20)
[Webinar] The Great American Vacation Study: How Travelers Seek, Shop and Saveparago
Of Americans who take leisure travel, over 90% are vacationing at least once a year. In this study, we explored how these consumers research, plan and schedule their vacations, including how they decide where to go, who goes with them — and, ultimately, how they choose which airlines, hotels, resorts and cruises to book.
Our key finding? Planning is personal. The majority of people book their own trips. And most of them (57%) start on search engines. Travel booking sites are a distant second (13%) and only 2% of today’s vacation-takers use travel agents.
Check out “The Great American Vacation Study: How Travelers Seek, Shop and Save” webinar slides to take a deep dive into how to disrupt their consumers’ paths to purchase and, ultimately, get travelers to book more with you.
Download the full report at: parago.com/report/great-american-vacation-study.
shine the spotlight on energy-efficiency incentivesparago
In a recent national consumer study, we explored awareness of and attitudes about energy-efficient products and incentives. The good news? Awareness of these products is very high. However, the more interesting insight is that 53% of shoppers are not aware of the associated rebates or incentives. For today’s deal-seeking consumers, these money-saving offers could strongly affect their purchasing decisions and, in the long run, their energy consumption habits, too.
Today’s partner programs need to be innovative and more engaging than ever. That’s why we recently completed a research study to determine how to drive pre-sales, sales and post-sales behaviors with targeted layered and bundled incentives.
[Infographic] Turn up Demand Response: Educate and Incent Energy Consumersparago
Energy providers need their customers to participate in demand response programs. However, our recent research reveals that only 14% of consumers are currently participating. Get the “Turn Up Demand Response: Educate and Incent Energy Consumers” infographic now to learn exactly what utility companies can do to increase participation.
The great american vacation study how travelers seek shop and saveparago
Of Americans who take leisure travel, over 90% are vacationing at least once a year. In this study, we explored how these consumers research, plan and schedule their vacations, including how they decide where to go, who goes with them — and, ultimately, how they choose which airlines, hotels, resorts and cruises to book.
Our key finding? Planning is personal. The majority of people book their own trips. And most of them (57%) start on search engines. Travel booking sites are a distant second (13%) and only 2% of today’s vacation-takers use travel agents.
Get "The Great American Vacation Study: How Travelers Seek, Shop and Save" report now to take a deep dive into how to disrupt their consumers' paths to purchase and, ultimately, get travelers to book more with you.
In this research study, we explored today’s omni-channel path-to-purchase. Across 11 different retail categories, we asked consumers how they research and identify the best deals. Our research revealed:
• exactly how short the path-to-purchase is today
• the best offers that disrupt the omni-channel
• how to create a sense of urgency that triggers more sales
• product propensity to be purchased in the omni-channel
• preferred omni-channel research resources by product
We are pleased to present the parago 2014 channel strategy report. We’ve proven that the channel is alive and well, but there are important opportunities to consider in the next 12 months. In particular, our research reveals that simplification is a valuable differentiator in a complex and hard-to-use channel ecosystem.
This research study reveals key insights related to partners, incentives, the cloud and reporting for 2014.
See our data for small, medium and large vendor channel strategies, including:
• the key initiative is identifying and recruiting new partners
• that top financial focus is shifting to recurring revenue incentives
• 3 of 4 vendors will add new sales enablement tools
• only 1 in 10 vendors gets more than 90% of revenue from the cloud
parago: channel simplified
We simplify channel complexities through better insights & flexible technology. At parago, we deliver channel incentives, marketing, and partner relationship management for more than 20 channel clients with 3 million partners worldwide.
2013 Shopper Reward Preference Study: People Prefer Prepaidparago
In today’s economy, it’s more important than ever to know what can truly incent shoppers to purchase a product or subscribe to a service. To find out exactly what does (and doesn't) work, we went straight to consumers for their insights.
More than 1,400 shoppers were surveyed about which rewards would change their purchasing behaviors. The results are in. Check out parago’s latest shopper reward preference study to find out what really gets consumers to act.
Key findings from the research include:
Prepaid cards rule: more than half of shoppers prefer prepaid cards over gift cards from Amazon, iTunes, Target, Walmart, Home Depot and more.
People prefer plastic: 2 out of 3 shoppers prefer physical cards over digital cards.
Prepaid wins across every industry:
- 2x more car buyers prefer a $200 prepaid card than a $250 instant discount.
- 62% of replacement tire purchasers prefer a cash reward on a prepaid card.
- 1 out of 2 consumers will pick a cable, internet or utility provider that offers a prepaid card reward.
- For hotels, a prepaid card reward is 4x more powerful than 50% off a third night.
- 1 out of 3 single-cup coffee maker buyers prefers prepaid cards (a higher percentage than any other reward option).
About parago
parago inspires behavior change by delivering $2 billion in rewards to 50 million people worldwide each year with advanced technology. A relentless focus on innovation (including four patents and 29 industry firsts) drives better results. That’s why parago is the smart choice for leading Fortune 500 companies and some of the largest brands in the world. Number one in consumer rebates and incentives, a global provider of channel management, a top solution for employee rewards and recognition, parago is a top-ranked digital and promotion agency according to Advertising Age’s 2013 agency rankings.
Time is Money: Customer Acquisition Researchparago
parago creates engaging solutions that inspire actions & impact results
As the most comprehensive single-source provider of incentives and engagement,
we deliver $2 billion in rewards to 50 million people worldwide each year using our
advanced technology. Our relentless focus on innovation drives better results,
making us the smart choice.
• consumer rebates & promotions
• employee rewards & recognition
• sales & channel management
• energy efficiency incentives
2. ONLINE RETAIL IS GROWING, but not as fast as offline brick-and-mortar
is contracting. Many retailers are reporting that customers who shop online
don’t come in store much, if at all, and vice versa. Customers who shop online
tend to expect greater selection, cheaper prices and free shipping, which
erode margins that are already battered by price-match strategies.
All of this change has two new buzzwords — BOPIS (Buy Online, Pickup In
Store) and BISBO (Buy In Store, Buy Online) — permeating retailers’ mission
control centers, as they work to grow transaction counts and healthier margins.
Retail is steeped in traditional “markdown” events, which still work, and
which have recently been proven once again necessary. But many shopping
trends are not being closely addressed, and now retail is playing catch-up.
The good news for retail and the brands they sell is that shoppers are
willing to change their behaviors in ways that are more advantageous to the
industry. Shoppers just need (and in most cases are not offered) the right
incentives to do so.
parago just completed a national shopper study to identify the best
opportunities to grow better margins for brands and retail. BOPIS and
BISBO are at the top of the list of behavioral changes shoppers are
willing to make. But meeting their expectations requires better synergies
between online and in-store, including improved service and the right
incentives. All are achievable by marrying new strategies with traditional
retail experiences.
Launching such change may seem a little daunting, given all the challenges
in the market. But the brands and retailers that plan now to work together
will be the first to plant their flag on the next horizon.
Please reach out with your questions, thoughts and suggestions. We can
provide a customized view for you, including retailers shopped online and
in-store, displayed by key demographics such as age, income and ethnicity.
launch better online
and in-store strategies
CONTENTS
METHODOLOGY 2
KEY DISCOVERIES 4
BOPIS & BISBO HAVE LANDED 6
CONVENIENCE & PRICE 8
ONLINE SHOPPING CATEGORIES 10
PEOPLE PREFER PREPAID 12
PRICE SENSITIVITY 14
SOCIAL MEDIA 16
ECONOMICS 16
APPENDIX 17
Good selling!
Rodney Mason
CMO
rodney.mason@parago.com
972.538.7336
twitter.com/rodmoose
BOPIS & BISBO
3. GENDER
female 57%
male 43%
AGE
18–22 7%
23–29 18%
30–39 14%
40–49 16%
50–59 21%
60+ 23%
ETHNICITY (select all that apply)
American Indian or Alaskan Native 3%
Asian or Pacific Islander 5%
Black or African American 10%
Hispanic or Latino 12%
White or Caucasian 74%
prefer not to answer 3%
REGION
Pacific 19%
Mountain 8%
West North Central 7%
West South Central 10%
East North Central 16%
East South Central 4%
New England 6%
Middle Atlantic 18%
South Atlantic 12%
EDUCATION
less than high school 1%
high school diploma 8%
some college 22%
vocational/technical degree 5%
college graduate 37%
graduate school 26%
EMPLOYMENT
employed full time 53%
employed part time 13%
unemployed 6%
homemaker 4%
student 6%
retired 15%
disabled, not able to work 4%
INCOME
<$19,999 15%
$20,000–$49,999 27%
$50,000–$99,999 34%
$100,000–$199,999 20%
$200,000+ 5%
OWN VS. RENT
own 55%
rent 45%
RELATIONSHIP STATUS
married or civil union 47%
widowed/divorced/separated 14%
living with significant other 12%
never married 27%
HOUSEHOLD SIZE
1 21%
2 41%
3 17%
4 13%
5 5%
6+ 3%
CHILDREN AT HOME?
no children in household 70%
children in household 30%
AGE(S) OF CHILDREN LIVING AT HOME (select all that apply)
under age 10 39%
ages 10–18 47%
over 18 38%
methodology parago conducted this national shopper study in July 2014 to identify the best incentives to drive
online and in-store traffic. 1,992 adults who represent US consumers completed this survey.
0% 100% 0% 100%
2 | BOPIS & BISBO
numbers may not add up to 100 due to rounding
4. the preference for online shopping is rocketing
In most shopping categories, offline brick-and-mortar experiences are still preferred. However, online is speeding up overall and — for some products and services — is actually the way consumers want to purchase. This study includes across-the-board insights.
incentives accelerate BOPIS
The majority of shoppers BOPIS (Buy Online, Pickup In Store) at least a few times per year. With the right incentives, many say they will do so more often.
reduce shipping costs and boost transactions
Consumers like free shipping, but the costs erode your margins. Offering a BOPIS incentive will drive incremental transactions and reduce shipping costs while driving incremental in-store purchases.
the online ascent is fueled by convenience and price
Convenience and price are the most important reasons people now buy online. That’s why it’s imperative for brands and retailers to make the in-store experience more convenient
and a better value. For example, picking up in-store most often beats shipping time and cost; add an incentive for in-store pickup to offer even more value.
consumers demand more value
The majority of consumers continue to believe that the US economy is headed in the wrong direction. In fact, one-third of shoppers report that they are purchasing less for this reason. They need more value to stimulate incremental purchases.
shoppers want more social offers
Although social media use is on the rise for shopper research, this study reveals that no single platform is a primary influencer — yet. Our insights do show which social platforms consumers are using, and that there are not enough offers propagated through social.
price-match incentives intercept showrooming
Over 80% of adults 18–48 years old have a smartphone. Of these shoppers, a majority regularly compares prices and makes purchases on their smartphone while standing in-store. And most of them are using Amazon and Google as launch pads for price-match searches. Price-match incentives tip the scale back to brick and mortar.
motivated shoppers stay in your orbit
Offer the incentives shoppers want in order change their purchasing habits, and they will shop you more often. We asked, and consumers told us they prefer prepaid debit cards over retailer gift cards and other types of rewards.
our key discoveries
4 | BOPIS & BISBO
5. shoppers are how often do you buy online and pickup in store?
exploring
new frontiers
BOPIS & BISBO HAVE LANDED
82% of shoppers would BOPIS for a $10 rebate on a $50 purchase
a few times per year 54%
monthly 7%
weekly 3%
64% OF SHOPPERS
ALREADY BOPIS
(buy online, pickup in store)
— sometimes
retailers can drive higher spend by tying reward to second purchase
55% OF SHOPPERS
who make a $25 online
purchase would purchase
in store within 2 weeks for a
$10 rebate on a $35 purchase
61% OF SHOPPERS
who make a $25 in-store
purchase would purchase
$35+ online within 2 weeks if
a $10 rebate doubles to $20
6 | BOPIS & BISBO
6. the online ascent
is fueled by convenience and price
The most important reason people now buy online is convenience. Last year, price was the runaway winner. But given the greater likelihood for retailers to offer price- match deals, price has slipped to a very close #2.
However, when you drill down into very specific customer categories — such as 18–29 year old smartphone owners — price still beats convenience.
CONVENIENCE AND PRICE RULE
why do shoppers buy online? select all that apply
convenience 77%
price 67%
selection 53%
other 9%
That’s why it’s imperative for brands and retailers to make the in-store experience more convenient and a better value. For example, picking up in store most often beats shipping time and cost; add an incentive for in-store pickup to offer even more value to your customers.
what 18–29-year-old smartphone consumers prefer select all that apply
convenience 79%
price 77%
selection 64%
other 4%
launch BISBO — observation
While your customer is in store, make sure at least one purchase is made on the spot. This is where BISBO (Buy In Store, Buy Online) can be a powerful tool. Use tablets, kiosks or trained sales associates to enable brick-and-mortar shoppers to order out-of-stock, online-only products and other complementary merchandise before walking out the door. If you connect the dots for your customers, they will buy more from you, more often.
8 | BOPIS & BISBO
7. the preference
for online shopping
is accelerating
In many categories, consumers are starting to prefer to buy online. A surprising discovery is that many shoppers would prefer to BOPIS (Buy Online, Pickup In Store) so many of these items.
retail category
prefer to buy online
would BOPIS
appliances, large
7%
45%
appliances, small
24%
51%
auto parts
16%
25%
beauty
24%
24%
bedding & linens
24%
33%
clothing (women’s, men’s, children’s)
43%
38%
electronics (computer, TV, stereo, tablet, headphones)
50%
57%
fitness equipment (treadmill, cross trainer)
8%
23%
entertainment (movies, games, books)
58%
38%
furniture (couches, tables, bed frames)
12%
34%
home improvement (smart thermostat, water heater, tools)
12%
29%
infant or toddler supplies (high chair, bedding, stroller, toys)
7%
13%
jewelry
19%
22%
lawn & garden
11%
29%
luggage
7%
21%
mattresses
4%
19%
medical (devices, medications, vitamins, nutraceuticals)
16%
21%
optical (contacts, glasses)
8%
16%
office supplies (paper, coffee, refills, pens)
23%
29%
paint & supplies
4%
17%
pet products
22%
27%
shoes (women’s, men’s, children’s)
31%
29%
sporting goods (shoes, workout clothes, uniforms, hats)
20%
26%
toys
19%
23%
wireless phones
17%
26%
ONLINE SHOPPING VARIES BY CATEGORY
10 | BOPIS & BISBO
8. motivated
shoppers stay
in your orbit
Providing the right rewards can bring customers back for more purchases. Most retailers are missing the mark on the rewards that drive spendback to the store. They opt for perceived cheaper options because they don’t understand the value and pull offering the right reward can deliver.
PEOPLE PREFER PREPAID
“which reward would you prefer to receive in store?”
prepaid Visa card 47%
store gift card (good online or in store) 26%
store “bucks” (reward dollars good online or in store) 14%
loyalty rewards 8%
“which reward would you prefer to receive from an online retailer?”
prepaid Visa® card 48%
store gift card (good online or in store) 24%
store “bucks” (reward dollars good online or in store) 10%
none 7%
store gift code good for online purchases 6%
loyalty rewards 6%
’tis always the season for BOPIS
The busy holiday shopping season does not hinder the propensity for BOPIS or BISBO (Buy In Store, Buy Online) offers: 63% of consumers want these offers during this peak time.
12 | BOPIS & BISBO
9. showrooming
is still on a
steep trajectory
Now that over 80% of adults 18–48 years old own a smartphone, it’s no surprise that showrooming is more common than ever. In fact, a majority of these shoppers not only compare prices while in store, they make online purchases while they’re standing there. The top two tools they use are Amazon and Google.
CUSTOMER PRICE SENSITIVITY IS HEATING UP
If a store uses a price-match™ rebate, shoppers would buy from the store vs. the online retailer.
$5 price difference on a $50 item will push the purchase to Amazon.*
would buy from Amazon if a $50 item in store were $45 on Amazon 63%
would buy from Amazon if a $50 item in store were $40 on Amazon 82%
would buy from Amazon if a $100 item in store were $90 on Amazon 76%
would buy from Amazon if a $100 item in store were $80 on Amazon 91%
top ways consumers check prices on smartphones while in store
Amazon 60%
Google 60%
apps 31%
other comparison websites 40%
Last year, Amazon was used twice as often as Google. Growing smartphone penetration — of the Android™ platform in particular — has increased Google use. Now, it is imperative to intercept competitors in store. You can do so by making your own online experience Android- and iOS-mobile friendly. Also, optimize for mobile search and establish an in-store pricing strategy that is competitive with Amazon and other online retailers.
*parago’s “Dynamic Pricing in a Smartphone World: A Shopper Showrooming Study,” 2013
where shoppers look for deals
When pre-shopping for deals, 53% of consumers use product-search or price-comparison websites (such as Google Shopping, PriceGrabber, Shopping.com, etc.). Deal and coupon websites (such as FatWallet and Slickdeals) are also used by 41% of consumers when pre-shopping.
14 | BOPIS & BISBO
10. To give retailers and brands deeper insights into their markets, we identified consumers’ preferred places to shop, both online and in store. We discovered the best opportunities to drive more online customers in store and push in-store customers online. In many cases, we can identify opportunities to grow share in both environments.
For example, we’ve identified several retailers that have greater share of available online customers, but not as much share of in-store shoppers. That means there should be significant opportunity to grow in-store revenues by driving online customers in store with the right offers.
In several cases, we found the opposite situation. Some retailers would benefit from driving in-store customers online to choose from a broader selection of items that are related to the items purchased in store.
The next few pages include summaries of consumers’ retailer preferences for online and offline, reported by ethnicity. This is just one of many ways to organize and analyze the data from this study. Reach out to me directly if you’d like a custom look at your opportunities to drive greater BOPIS and BISBO that will lead to increased transactions and total aggregate spend.
Rodney Mason
CMO
rodney.mason@parago.com
972.538.7336
APPENDIX:
SHOPPING HABITS
BY ETHNICITY
a bigger view
Pinterest is the leader in social media
Social media is underutilized by retail and brands to drive customers to make purchases either online or in store. Retailers and brands need to invest more in social and deliver shopping-focused messages. If they don’t, they’ll miss a significant opportunity to grow online and in-store traffic.
top 5 social media sites used when planning to shop
Pinterest 9.0%
Facebook 8.8%
YouTube 6.8%
Instagram 1.4%
Twitter 1.2%
the economy is a big challenge
Finding ways to build shopper confidence in total value will unlock incremental spend.
67% believe the country is headed in the wrong economic direction.
46% of these people — one-third of the total population — spend less because of this belief.
ECONOMICS
SOCIAL MEDIA
16 | BOPIS & BISBO
promote price via social
60% of consumers want to find discounts and purchase incentives via social media. 66% follow brands. The vast majority are not receiving discounts via social, hence social is not driving purchase, even though shoppers want it to.
15. we create engaging solutions that inspire action & impact results
Reach out to me directly if you’d like a custom look — including key demographics, store preferences, categories and motivators — at your opportunities to drive greater BOPIS and BISBO that will lead to increased transactions and total aggregate spend.
Rodney Mason
CMO
rodney.mason@parago.com
972.538.7336
twitter.com/rodmoose