Hitmetrix - User behavior analytics & recording

The Showrooming Effect: Leveraging the In-Store Experience

As humans, we have an innate need to see, hear, smell, feel, and manipulate objects in our physical world. Being able to see the brightness of the screen and listen to the sound quality of a TV, smelling the fragrance and feeling the creaminess of a face lotion, or testing the softness of a sweater against one’s skin—that’s what drives shoppers into a physical store.

What then drives the more than 40% of shoppers reported to engage in showrooming away from the store and onto the virtual sales floor? According to recent studies by Aprimo and Northwestern University, many leave because of poor customer service, lack of personalization, and higher cost—and lower value—items. However, retailers and CPGs have an opportunity to overcome all three of these by rethinking and reinventing the in-store experience.

Improving customer service

Retail is above all a service industry and every associate—from the stock clerk to the cashier to the store manager—has a critical role to play in satisfying shoppers’ needs and expectations. Creating a culture centered on customer service is more than just implementing a policy. The first step comes in hiring associates who love what they do and who enjoy working with the public. With the right people in place, activities like welcoming shoppers into the store, asking if they need help, and offering to walk them to the aisle that contains the item they’re trying to find will come naturally. Ongoing training and incentives (be they tangible or intangible) are often the key to creating this culture of service—and a worthwhile investment given that good service is often rewarded with sales.

Personalizing the shopping experience

Though good service is an important factor, it’s not all that’s required. Associates also need robust training on the products they sell. Unlike online reviews or static product descriptions, a well-trained associate can talk with shoppers one-on-one, answering questions and providing in-depth insight that directly combats the lack of information many have cited as a reason for turning to the web, as well as the one-size-fits-all approach served up by many online retailers.

By adding a retailer-branded in-store sampling and demonstration event program to the mix, retailers can further the positive, personalized shopping experience, while also playing to shoppers’ tactile instincts. These events actively encourage shoppers to get hands-on with a product by engaging all five senses, as well as shoppers’ emotions. They also give associates the opportunity to demonstrate how the product can serve each shopper’s unique needs. When a shopper shows interest, associates can use the relationship they’ve begun to establish to directly ask for the sale, handing over a package or personally guiding the shopper to the shelf where the product can be found. All of these techniques deliver a shopping experience that makes the customer feel valued, which can be the difference between a finalized sale and yet another opportunity lost to the virtual retail world.

Providing value

Addressing customer service and personalization issues by elevating the in-store experience is a natural fit. But what about cost concerns? Here a lesson can be learned from retailers like Costco and Target. These industry leaders are beginning to work with vendors and CPGs to change the in-store/online value dynamic by offering exclusive, upgraded versions of products, such as a coffee maker bundled with a reusable filter that would normally cost double the difference in price between the base models available online and this exclusive in-store-only bundle.

But it’s not enough to simply put these products on the shelf—you also have to get customers to buy into the value-add concept. Associates or dedicated brand ambassadors (think a “KitchenAid Specialist” or “Kellogg’s Guru”) can be the answer. These product experts highlight product attributes, making the differences and added value clear to shoppers, while at the same time appealing to shoppers’ emotions by making them feel like they’re getting something truly special and unique that’s only available in-store and not online.

The bottom line is that retailers and CPGs need to vary the lens through which they view their marketing efforts. In the past, getting shoppers in-store was often the primary focus. But the fact that showroomers are going to brick-and-mortar stores first and still leaving empty handed is evidence that simply getting shoppers in the door isn’t enough. It’s also proof that virtual retailers can’t satisfy a shopper’s every need.

To overcome the showrooming phenomenon, retailers and CPGs must work to fill in the gaps left by online shopping and provide an in-store truly valuable shopping experience—both emotionally and financially.

Giovanni DeMeo
is VP of global marketing and analytics at Interactions, a San Diego, California-based company focused on product demonstrations and event marketing for retailers and brands.

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