New Detours Ahead Along The Path To Purchase
We all know how difficult it can be getting a product on the shelf and into the shoppers’ basket. Today, traditional shoppers have changed the traditional path to purchase, by making the buying process an omnichannel experience and utilizing the internet and mobile apps to find the best value.
Shoppers have always gone after the best deal. Mobile apps such as Amazon Price Check and ShopSavvy and websites like Nextag & Shopzilla compare pricing for like items and products across retailers. These processes, called Showrooming and Webrooming, have had a serious impact on traditional brick and mortar stores. So what are they?
What is Showrooming?
A customer will go into a store to check out or evaluate an item. They will not make a purchase in-store, but rather will go online to find the same product at the best price, read reviews on like items and conduct extensive research to find the best value on that product. With Smartphones, a quick search on the item can be conducted while the shopper is still in the store, to see if they can find better value elsewhere and deterring them from making a purchase with the retailer.
What is Webrooming?
Webrooming is essentially the opposite of Showrooming. A shopper will conduct research online, comparing prices between one retailer and the next, to find the lowest price or best deal. They will go to the store location to purchase and pick up the merchandise to receive immediate satisfaction (or order from the retailer and pick up in the store, if the best price is online).
The Impact on Retailers
Both Webrooming and Showrooming eliminate a lot of impulse purchases causing headaches for marketers. We have seen a drop in the effectiveness of current promotion techniques as the customer now has more resources to find items and their pricing. And if their customers are getting smarter, retailers need to be getting smarter too. Webrooming and Showrooming increase the number of steps in the path to purchase and make it that much more difficult to make sales. Retailers are turning to competitive pricing solutions and are integrating them into their strategies, to price their merchandise intelligently, to stay competitive, find margin opportunities to capitalize on and use pricing insights to make more effective decisions.
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