Showrooming. It is one of the leading causes of retailers’ nightmares. It’s what has them waking up screaming in the middle of the night. For those of you who are not familiar with the term: it is what happens when customers check or try out a product in a nearby brick-and-mortar store but purchase it at a lower price online, sometimes even on their smartphone while they are still in the store. This blurring of the lines between stores and the online world is here to stay, and it will only increase over time.
“Mobility is murdering our stores”: that is unfortunately what a lot of ‘old-school’ retailers are still thinking. And, yes, it can seem threatening indeed: According to Zapfi, 84% of smartphone shoppers use their devices to help them shop while in a store. 24% of store visitors bought a product online because it was out of stock. JiWire uncovered that 37% of mobile consumers have purchased a retail product on a smartphone or tablet after researching it in-store. Trying to ignore these trends or blocking mobile phone reception in stores are the worst possible reactions. The only thing the latter will do is drive customers out, which goes against everything shops are supposed to do. Rather than feeling threatened and trying to battle these evolutions, retailers ought to seize the potential of the mobile and online channels in order to optimize and guide the customer journey in their physical shops.
An example. Stephany enters her favourite shop and sees a blue sweater that she really likes. She goes into the fitting room, and – although she loves the design and it is the perfect size – this particular blue makes her look unhealthy. She decides not to buy it. Just when she is heading towards the entrance, she sees the same jumper in red, her favourite colour. Unfortunately, it is not available in her size. Only a while ago, the shop would have lost the customer. Today, smart retailers can fix this problem. Shop assistants can help such customers to buy the red pullover online and have it delivered the next day in their store or at the customer’s home, depending on their preference. If the online channel is not theirs, smart analytics could make sure that they receive a financial incentive.
This is a classic case where one and one does not equal two, but is much more. It is actually about becoming a MO’R STORE: when mobile (M), online (O) and retail (R) converge into something more than their single statuses added up. To me, it’s purely a question of delivering excellent services by combining the best of two (or three) worlds. Customers today are less loyal and more vocal than ever. The best possible manner to keep them happy is to give them the personal guidance that they appreciate. And whilst the online channels are indeed very convenient, nothing beats being assisted in a fast and friendly manner by an in-store expert.
For instance a sport gear shop advisor could register personal data on his tablet in order to find the best possible running shoe for a customer, based on his weight, height, level of expertise, average running pace, the arch of his feet… If there are several possible matches he can advise the one that’s in promotion in store. Or if the item is out of stock in the customer’s size, he can send him an e-mail with the direct link to the product in the online shop for which the store owner will then receive a financial incentive.
It is a matter of extreme tailoring and guiding customers in their online and mobile journey towards your own brand, rather than losing them there to the competition. Channels should always complete one another. Betting everything on the digital channels is as much of a mistake as battling them in the brick-and-mortar stores. For instance, bank customers use the digital channel for most of their transactions but, on some occasions – like mortgage loans –, they want a live advisor in front on them. Adding the digital in the brick-and-mortar mix is actually about offering an extra service, not about replacing the one by the other. It results in a MO’R human approach, MO’R dialogue, MO’R customer satisfaction and MO’R loyalty. And that is how you keep a hold on your hard-earned customers today. Is your organisation ready to connect with your customers in that way?
Michaël Deheneffe, CRM Consulting Director at Business & Decision
