Pro-Active Response to "Showrooming"

Have you experienced "showrooming" in your stores? You know, you spot a customer in your store who is price-checking your merchandise, and is actually on the ecommerce website of an online retailer. 

Here's how one retailer we know is dealing with it. Approach the "showrooming" customer, and encourage the customer to put the product into the online Shopping Cart. 

Why? Because only then can the customer see what the total cost would be of buying it online. Only after the product is in the Shopping Cart are the costs of shipping and sales tax added in. That is the true "comparison" price.

So, this retailer encourages the customer to get complete price information. And, at that point, when both the customer and retailer see the total online price, then an actual comparison can be made. Some customers discover that they won't be saving much, if anything, by buying online
Essentially, this retailer uses showrooming as a "teaching moment." He helps the customer discover for themselves what their actual cost would be.

Even Better: Shelf Talkers Do the Showrooming FOR the Customer!
What if you can't intercept every showrooming customer? After all, they often try to be discreet about it! Or, it might feel too confrontational for you. Here's an idea: provide the price comparison for them! 
  • Pick a product that you feel is most vulnerable to being showroomed. 
  • Go online, find that same product, and put it in the Shopping Cart, as if you were going to purchase it.
  • Use a local ZIP code for the shipping address.
  • Proceed to Checkout, so you can see the total actual price (including shipping, tax, etc).
  • Take a screen shot of the Checkout screen.
  • Use the screen shot to create a "shelf talker" to display alongside the product in your store.
This is what the big guys call "price transparency." You're  giving the customers what they want, which in this case, is the facts about whether they could save money by buying online.  

We call it another example of how retailers can work smarter, not just harderHappy "Proactive Showrooming"!!


1 comment:

asickle said...

I am a graduate student currently doing research involving markdown allowances in retail. I am trying to understand more specifically how they work (how are the terms structured? when are things negotiated? how frequently are markdown allowances used?). I'd appreciate any information on the topic.