Customers use their smartphones for many purposes: calling, messaging, texting, gaming, taking photos, recording sound, filming, etc. These are all activities that cause little trouble for the retailer. However, what can cause the retailer trouble is showrooming and webrooming. This primarily concerns price comparisons.
Showrooming refers to price comparison using a smartphone while shopping. Sometimes outside the store, but mostly simply inside. People look for another store offering similar items. If one is found and the selling price is lower, one can then decide:
- to buy the item after all;
- to go to the other store;
- to inquire about the item from the seller and to buy it via the internet;
- confront the seller about the fact that the item is cheaper elsewhere.
With the last option, the customer shows the smartphone, and the salesperson can see that a different selling price is being asked elsewhere. This is where the quality of the salesperson comes into play. To what extent, and with what arguments, can he or she convince the customer that buying from him or her is still the best option.
Webrooming is the process that takes place out of sight of the store. The prospective customer scours the internet from home to see where the best deal can be made. Comparing products is greatly facilitated nowadays, as there are dozens of comparison sites. And to make it easier for the customer, www.snakewool.nl has created a selection option based on product type, after which users are directed to the best price comparison sites.
Often, only the price is considered, whereas the terms and warranties can form an essential part of the purchase.
Price comparison can, of course, be applied to any item. Nevertheless, there is a ranking. Electronics still stand in first place. In second place, not surprisingly, are groceries. And in third place is clothing, and especially designer clothing, because price comparisons are easy to perform there.
Is showrooming being done frequently now? Of those who engage in showrooming, 95% indicate that they do so and will continue to do so. Although 30% of prospective buyers do not yet do this, that percentage will steadily decline.
How can the retailer accommodate the customer to ensure that the customer makes the purchase from him/her?
The greatest power of persuasion is, after all, the conversation between the salesperson and the customer based on good information and intelligent advice.
If, during showrooming, the customer notices that the sales price is lower, the same, or slightly more expensive than at another company, they are generally inclined to buy wherever they happen to be at that moment.
Integrate the physical store with the online store. Customers like to interact with both on-site. Not all information is always visible in the store, whereas that is often the case on the website. And if something is out of stock, it can quickly be ordered via smartphone.
But who are these showrooming and webrooming people? It is obvious that this is done by certain generations. For instance, we can largely rule out baby boomers, although they have already started engaging in this more frequently. Generations X and Y are the ones who engage in it frequently.
Generation X (1961-1980, opinions are divided on this) is in the prime of their lives and is active in the labor market. Women became less dependent on men and increasingly entered leadership positions. They are self-aware and are not easily thrown off balance by criticism. And they are now well-established in the digital world.
Generation Y (1980-1994) grew up in a time of economic prosperity and strong technological progress. Ambitious people with a drive to achieve who do not shy away from entrepreneurship. Very active on social media, because they were introduced to computers and the internet world during their youth.
What should be taken into account if we want to know their browsing behavior?
Of Generation X, 30% are in showrooming and 45% in webrooming. Generation Y obtains 35% of its information from showrooming and 55% from webrooming.
