With the presence of new technologies, shopper behaviors have also changed. Not only do mobile machines and apps make remote shopping easier, but consumers are taking and using devices inside stores. That’s how showrooming has been gaining traction, especially among the cost-conscious crowd. I personally do this all the time. Showrooming, or the practice of exploring products in-store but then comparing prices and purchasing online, is radically disrupting the traditional space. But there’s a few ways that small businesses can help retain customers at the store level and compete with the online giants. First, let’s look a little bit more closely at this growing trend…
Due to their size and mobility, consumers carry their smartphones with them wherever they go. This includes inside stores. It only makes sense that when you stumbled across a question, or needs more information, you consult your smartphones on-location. In fact, one in three shoppers use their smartphone to find information on a product or service. Moreover, the amount of information that can be contained on the web far exceeds that of in-store signage or literature. Users can browse or study at their leisure while shopping, while additionally having the ability to see products first-hand and help make better purchase decisions.
As mobile use continues to rise, this practice will only become more popular. It makes sense from a consumer perspective – being granted the ability to research, price compare, take advantage of web promotions, all in a moment’s time. From the same Search Engine Watch article as above, of those who participate in showrooming, 53% make price comparisons, 39% find promotional offers, 36% find directions or location, and 35% determine a store’s hours. The tangible nature of certain products (cars, furniture, power tools, to name a few) make in-store visits a necessity but the ability to shop online for a better deal is a major advantage and a great route to take once you decide on a product to purchase. As a result, businesses are beginning to look for ways to combat this activity so as to keep users on-site and purchase right then and there.
As a B2C company, there’s no doubt you have been feeling the pressure from Amazon and other large e-retailers who are stealing away your dollars. You might get foot traffic, but having consumers quickly and easily buy online is having a major impact. If you have a bricks and mortar store and suffer from showrooming and are having trouble keeping up with the web competition, here’s a few tips that may help…

1) Location Based Services

Today’s users often enable geo-tagging features on their phones, pinpointing their exact locations, or use mobile apps that let them “check-in,” also giving away their positioning. Some, like foursquare, encourage this practice through gamification badges or by offering discounts or deals. Others help users navigate within walls when GPS fails and provide users with rich information. For example, Shopkick or Wifarer. This directly relates to showrooming in that it can actually be a combatting element for marketers who are looking to keep users on-location.According to Mashable, some retailers, like Target, are encouraging the behavior by giving shoppers gift cards and other rewards for checking in and scanning merchandise. QR codes that can be scanned for more information, a shopping app that allows you to quickly compare prices with nearby retailers (as long as you have the best deals), or discounts that appear when you check-in on-location are only a few suggestions of ways that brands can take advantage of location-based services.

2) Loyalty Programs

Writer Jenn Webb writes: “Say, a customer has opted in to a bookstore’s loyalty program, which could include in-store advantages such as coupons or special event notices. If that customer is standing in the science fiction or fantasy aisle, and the store has an upcoming author engagement with Neil Gaiman, this news along with a discount offer for a ticket could be pushed to his or her phone.” Managing a mobile loyalty program can allow for highly targeted messaging to current customers. But loyalty programs do not necessarily have to be that high tech. More traditional programs can also be put into place to offer returning customers with an incentive to shop there versus a competitor. Some brands, like Subway, use cards and other brands simply reply on phone numbers or email addresses. Either way, offering perks to consumers who shop regularly is a great method to compete with the showrooming mentality or large online stores who might edge you out with better pricing. BOGO, percentages off, a free tenth item, a free gift, opportunity to win a prize, are only a few examples of perks offered that could work to retain customers.

3) Exceptional Customer Service

My CEO, Brian, shared a story with me last week. He told me about how his wife ordered a pair of boots from Zappos and when they arrived, they were the wrong size. She was heading to Europe for a trip and wouldn’t be able to place a new order and have them arrive through standard shipping in time before she left. She called Zappos and explained the situation. The customer service representative asked for her size and the model number and decided to overnight the shoes to make sure she had them in time for her vacation. The CSR went on to tell her to not worry about shipping the original pair back until she returned from Europe.
That, my friends, is great customer service.
You cannot buy marketing that is more real or convincing. What did it cost Zappos? $20 in shipping? Okay, it didn’t reach a mass audience like a banner ad or TV commercial would. But Brian’s wife, Brian, their family, their friends, and now me, have all been sharing this story for a year now. That word of mouth marketing is powerful and the domino effect leads to more sales down the road. In fact, 86% of buyers will pay more for a better customer experience. That means caring can help offset costs.
You don’t need to be Zappos to do this. You don’t need to be an online-only company. This doesn’t have to be a success story that you only read in Fast Company or Inc. This could be you as long as you go above and beyond for your customers. This is the type of service that helps you compete with the Zappos and Amazons of the world because people are happy to do business with small or large companies alike, as long as they feel like they are being taken care of. Loyal customers are more valuable than new customers anyway. So give them a reason to keep coming back.

Understand Your Audience

Every brand has different audiences, each with varying behaviors. Will my target shopper enter my store and look online to verify that he is getting a good deal? Will he shop online completely and not bother to drive to my location? Will he value the in-store experience and rely on great customer service? These are only some of the questions that should be asked before deciding on a strategy. Use market research, surveys, Google Analytics, and other resources to gain valuable insight into customers. By analyzing data, fitting tactics can be used to try and capitalize on these behaviors. This information might help you ward of showrooming (by using some of the tactics mentioned above) or head in a completely different direction with a better online experience and/or e-commerce system.
It is clear that mobile devices are greatly affecting the way people shop and purchase products. Showrooming is causing some retailers to be simply “holding cells,” offering consumers a chance to touch and feel products, but allowing them to seek better deals elsewhere. Marketers can take advantage through strategic efforts, intercepting the activity on the web and giving consumers a reason to spend money in-store. As mobile shopping continues to become a driving force amongst today’s consumers, marketers must determine the best ways of reaching them, or retaining them, to maximize profits.