jackmyers.com
Free ContentFor Members Only
HOME MEDIAVILLAGE.com WOMEN ADVANCING HOOKED UP MEMBERSHIP INFO MEMBER COMPANIES MEDIA BUSINESS REPORT ECONOMIC FORECASTS RESEARCH
Home > JackMyersThinkTank > Showrooming is the New Normal -- So Use It to Your Advantage -- Say Media

Showrooming is the New Normal -- So Use It to Your Advantage -- Say Media

December 12, 2013

Published: December 12, 2013 at 10:23 PM GMT
Last Updated: December 12, 2013 at 10:23 PM GMT

"You gotta tame the beast before you let it out of its cage." – Derek Zoolander

“We love showrooming...when Target gets to book the sale,” says Casey Carl, president of multichannel at retail giant Target. “For retailers to survive and thrive in the future, we’ve got to up our game, play to our strengths and seize the upper hand by enhancing both our physical stores and digital channels.” Target’s not alone in this relatively new attitude about the phenomenon known as showrooming. Shoppers are busy looking for the best deal and more and more are using their smartphones and tablets for showrooming. They’re checking prices and product information while shopping in stores and this has significant implications for retailers. Their biggest fear is this: Shoppers will comparison shop “in the store” and then order online for a better price.

In fact, it may turn out that showrooming is not as bad as some retailers thought it would be. Deloitte's 2013 Annual Holiday Survey found that 44 percent of consumers use their smart phones for reading reviews, 36 percent use them for receiving discounts and coupons and 32 percent use them for scanning product barcodes.

Target’s on to something. This holiday season it looks as if BestBuy is taking a similar route in an attempt to work showrooming to their advantage. The company recently launched a new holiday TV ad campaign featuring four celebrity storytellers – Will Arnett, LL Cool J, Maya Rudolph and Jason Schwartzman - reading tales of potential holiday shopping nightmares prevented by the magic of Best Buy.

This is in sharp contrast to some of the early reaction to showrooming. Many retailers were caught off guard a few years back when the consumer practice gained in popularity. Perhaps the most “famous” example of the panic setting in for some retailers came from this example: A specialty food retailer based in Brisbane, Australia posted a sign in the window warning shoppers that the store would impose a $5 fee for people who are "just looking."

Obviously, threatening your customers is not the path to success. Instead, smart retailers understand that although consumer behavior constantly changes, certain solid marketing principles still apply. Concepts like loyalty, adding value and creating a great customer experience will win the day. In other words, it takes work to earn and keep your customer’s business – but in the long run it’s well worth it.

What’s more, it may turn out that retailers don’t have to resort to automatic price-matching to combat the negative effects of showrooming. A recent study from Columbia University and loyalty management company Aimia, Inc. supports this. Shoppers show a strong willingness to join loyalty programs in exchange for rewards delivered via mobile. The study goes so far as to identify five types of mobile-assisted shoppers and offers insights to retailers on how best to market to each shopper type. There’s good news for brands that invest on this front. More than half of mobile shoppers are more likely to purchase a product in-store when their mobile device helps them find online reviews, information or trusted advice.

The omni-channel or multi-channel consumer is here to stay and retailers have a choice – either threaten customers so they never return to your store again or embrace the mobile-assisted shopper and get creative. Toys R Us plans to embrace the mobile shopper this holiday season with what they believe is a winning formula - strong in-store experience and a successful Internet business. In fact, the company says there are “81 different ways we can get product to the customer.” Good thing, because when it comes to toys , no parent wants to see OUT OF STOCK on their computer screen – especially during the holiday season.

Savvy retailers are busy enhancing the in-store experience, offering free Wi-Fi to make the information shoppers are seeking available and creating in-store exclusives. They’re finding that shoppers linger longer and the data collected is helping with future targeting and special offers via mobile coupons – and they've joined the chorus of “We Love Showrooming!”

Beverly Macy is author, educator, and thought leader in social and digital business and a frequent contributor to Say Daily . She is also the author of The Power of Real-Time Social Media Marketing and the host of Social Media Radio .

Say Media is a digital publishing company that creates amazing media brands. Through its technology platform and media services, Say enables its portfolio of independent content creators to build passionate communities around key consumer interest areas such as Style, Living, Food and Tech. For more information visit www.saymedia.com.

Read all Say Media's MediaBizBloggers commentaries at Say Daily.

Check us out on Facebook at MediaBizBloggers.com
Follow our Twitter updates at @MediaBizBlogger

The opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggers.com management or associated bloggers. MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries.

add this social bookmark link

0 Comments
Post a Comment










Commentary Archives

January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015

See all Archived Material

MediaVillage.com

A New Era in Super Bowl Messaging -- Gender News Weekly
This is a special Super Bowl edition of Gender News Weekly, a blog series focused on gender equality, gender politics and the shift in gender norms in business and relationships and inspired by Jack Myers’ upcoming book, “The Future of Men: Masculinity in the Twenty-First Century.”

Can the Tech/Media Worlds Hit “Pause”?
Is there any way to put what got out back into Pandora’s Box and reseal it? My old friend from our cable days, Steve Effros, thinks the worlds of social media have gotten out of hand. Seeing as the cable/telecommunication cabals helped unleash the social media madness, we might want to consider the question of how to put (some of) it back.

The Top Five Ads That Did Not Appear During Super Bowl 50
Last week on Charlie Rose, MediaVillage’s Stuart Elliott called the Super Bowl, “the one day of the year when the American public will give Madison Avenue their undivided attention.” That comment prompted one industry pro to jokingly tweet, “Only one day??? Time to rethink my career!” (Scroll down to the bottom of this column to watch Charlie's interview with Stuart.)

TV or Not TV, That Is the Question
One of the many lively sessions at the Digital Place Based Advertising Association's (DPAA) annual Video Everywhere Summit in the fall was a panel that debated video agnostic planning; the issue of whether all video screens should be valued equally (see link to panel video at end of column). Suffice it to say, there were strong opinions expressed on the topic but one clear takeaway emerged: With screens now pretty much omnipresent in our lives, the definition of what constitutes television is murkier than ever.

Dramas Deluxe: “O.J. Simpson,” “American Crime,” “London Spy”
The overload of quality television shows no sign of waning anytime soon, even if critics are collapsing under the burden of it all and ordinary people are starting to push back, overwhelmed by the crushing combination of so much choice and so little time. Allow me to identify three stand-out drama series from the ever-growing list. BBC America's “London Spy,” the second season of ABC’s “American Crime” (currently the most powerful drama on broadcast television) and the first season of FX’s formidable new franchise “American Crime Story” are setting the bar awfully high for the year to come.

Super Bowl 50: Where Were the Brand Stories?
Super Bowl 50 was overrun with 30-second bits of confusing, celebrity-laden, idea-missing, frenetic hype and hyperbole, most of which lacked any memorable brand story whatsoever. 

2016 Network Upfront and Digital NewFronts Calendar
Television Network Upfront and Digital NewFronts Schedule

Rick Erwin of Acxiom on Targeting with Data
Rick Erwin has been in the epicenter of the data driven marketplace for over 25 years, including 10 at Experian and 12 at RR Donnelley. Now as President of Audience Solutions for Acxiom, Erwin is responsible for the success of the data, analytics and digital media business globally in division. “Acxiom is an enterprise data, analytics and software-as-a-service company [referring to the cloud],” he says.

Stuart Elliott: What the "L" Happened to Super Bowl 50 Advertising?
What a shame! The commercials that ran Sunday on CBS during Super Bowl 50 were, for the most part, as forgettable as the game was.

Susan Sarandon at the SAGs, Beer Ads and More: Gender News Weekly
Inspired by Jack Myers' new book "The Future of Men: Masculinity in the Twenty-First Century" (coming in March), this is a weekly blog focused on gender equality, gender politics and the shift in gender norms in business and culture. Read on for this week's news roundup.

MediaBizBuzz: The Super Bowl, Comcast, ESPN, Viceland and More
A roundup of the week's key news from MediaVillage member companies and the wider media industry. This week, financial results from Comcast and Google shed more light on viewer and advertising trends, Nielsen fixes ESPN data, digital disrupts jobs at media companies, Yahoo tries to turn around its turnaround, Viceland’s executive landscape becomes clearer and how many digital ads a Super Bowl TV spot can buy.

Why I’m Excited About the Super Bowl for the First Time Ever
I have never been excited about the Super Bowl. I’m not a football fan. I neither enjoy nor understand it. The ads, which I do enjoy, are either released before the game or available immediately afterwards. I rarely care about the half-time performance. I do not like beer, buffalo wings, plain potato chips or really most go-to Super Bowl party refreshments. I do not like Sunday night engagements, as they conflict with “Downton Abbey.” Lest anyone rescind my invitation to their Super Bowl party, I am pleased to say that this year I am extremely excited about the big game. Why? Two words: Fantasy football.

ANA vs. 4As: The Advertiser Agency Battle Rumbles On
The argument between advertisers and media agencies in the USA over transparency rumbles on. Earlier Cog Blogs have commented on advertisers’ concerns over the agencies’ media buying practices, and their hiring (via their trade body the ANA) of two consultancies to look into the whole matter of where the money goes. Now, in what sounds like an attempt to get their retaliation in way before the consultants have even reported, the agencies’ trade body (the 4As) last week issued something called “Transparency Guiding Principles of Conduct.” In line with what seems to be something of a strained atmosphere between the two parties, the 4As did this without any discussion with their clients, whose trade body is as we said in mid-consultation and who might have had something interesting to input into what they consider to be the principles of transparency.

NBC Digital’s Bill Smee on the Evolution of News
News creation and coverage is one area of the media that has seen particular change in the past few years. Affordable easy-to-use production equipment, the shift from film to video to digital formats, advancements in production technology and expansive access to anyone and everyone via the Internet have dramatically shifted the business of news content formation.

Mindshare: Coordinates for the Perfect Playlist
This week on Mindshare’s Culture Vulture Live, Amanda Hechinger explores mobile location data and the opportunities for brands.

Click Here for Membership Information