Wednesday, September 5, 2012

How to Prevent Showrooming


Showrooming is a term used for when consumers browse items at a brick-and-mortar store and then compare prices online.  With the ever increasing usage of smart phones, consumers are utilizing comparison shopping apps to search for the best price.  Unless brick-and-mortar retailers can compete with online prices for the same product, they will lose the sale.  This trend of savvy consumers’ use of traditional retailers as their showroom to touch and feel a product is only going to increase.  So how does a brick-and-mortar store prevent itself from becoming the showroom for their customers?

First, a brick-and-mortar store has to be competitive on pricing.  If the price from an online retailer is a lot lower for the same product, most consumers will choose to buy from an online retailer.  Although price is arguably the most important factor whether a consumer purchases an item from a store retailer over an online store, other factors can persuade a consumer to make the purchase from a store. 

One example is merchandising.  The location and decoration of a display can create an atmosphere of buying that online retailers cannot do.  Signage, product information and lighting can have a great impact.  Another thing that online retailers cannot offer is the touch, feel and taste of a product.  Sampling of products allows consumers to try a product before they buy it.  Having associates not only offer the product, but talk about the product with the customer, is a great way to create a buying decision.  Sampling also takes away consumers’ fear of buying something new for the first time and not knowing if they will like it.  Lastly, good face-to-face customer service is something online retailers cannot offer.  Friendly associates who are helpful to shoppers create customer loyalty in the store.  Online retailers compete mostly on price only.  When done right, human touch is one advantage that brick-and-mortar stores have over any digital store.