Embracing “Showrooming” Through Interactive Retail

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Embracing “Showrooming” Through Interactive Retail Presented by Session sponsored by

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An increasing number of consumers today are treating the physical store like a “showroom”: trying out new products and proceeding to buy the product online at a lower price. In this session, iQmetrix will discuss interactive retail technology and how improving the in-store experience can help to convert shoppers, initially bent on showrooming, into buyers. They will also discuss how retailers can develop an “omnichannel” experience by selling to consumers on all channels (online, mobile and in-store) simultaneously.

Transcript of Embracing “Showrooming” Through Interactive Retail

  • 1. Embracing ShowroomingThrough Interactive RetailPresented by Session sponsored by

2. #CCSeries13About CCS 2013 9 Webinars, 4 Days Sessions coveringMobile, Social, Store Ops,X-Channel, and more Featuring industryanalysts and consultants Free for Retail executiveswww.retailtouchpoints.com/connected-consumer-2013 3. #CCSeries13Follow The Webcast On Twitter#CCSeries13@ConnectConsumer@RTouchPoints 4. #CCSeries13About Retail TouchPoints Launched in 2007 More than 25,000 subscribers Provide executives with relevant,insightful content Free Resources such as White Papers,E-book, Webinars, Research andPodcastswww.RetailTouchPoints.com 5. #CCSeries13BrightTALK 6. #CCSeries13Todays PanelistsJim DionFounder & PresidentDionco, Inc.Alicia FiorlettaAssociate EditorRetail TouchPointsMODERATORAllan PulgaManager of CommunicationsiQmetrix 7. How You Can Keep Your Store From Becoming AFitting Room For Internet ShoppersJamesDion 8. What Is Showrooming?shoppers who scope out merchandise in stores butbuy on rivals websites usually at a lower price 9. The Store Is, And Will Remain For SomeTime, The Channel Through WhichRetailers Receive The Largest ProportionOf Their Revenue. However,through 2015, retail revenue from e-commercechannels is expected to grow while B&M storesrevenue will continue to shrinkChannel 2009 2013 2015B&M Stores 91.2% 87.01% 83.98%E-Commerce 5.64% 8.89% 11.45%Mail Order Catalog 1.56% 1.02% 0.94%Call Center 1.24% 1.40% 1.19%Mobile Commerce 0.09% 1.26% 1.89%Other Channels 0.35% 0.46% 0.55%n = 186 retailers)Top-Line Trends on Channel Revenue % SplitSource: Gartner 10. And Although A Low Percentage OfRevenue, M-Commerce Will Have ASignificant Impact On Cross-Channel Salesshopping via smartphone - the growing toolfor showrooming 11. Why Is ShowroomingHappening?customer wants in a nutshellInstant GratificationBroad SelectionCognitive DissonanceLow Price 12. Why Is ShowroomingHappening?supplier behavior in a nutshellWall Street Pressure Growth At Any CostBrands Over-Distributed 13. Instant Gratificationspeed at all cost 14. Broad Selection 15. PriceSource: www.fluidretail.com 16. Deals Are Here To Staydeals, sales and promotions have become an expectedpart of the shopping process for consumers acrossall age groups, genders and incomes 17. As He Learned The Hard Way! 18. The Elephant In The RoomAmazon.com was the 13th largest retailer inthe U.S. in 2011, up from 19th in 2010 -expected to rank 10th this year displacingBest Buy and may surpass Wal-Mart by 2020 19. Source: www.ilsr.org 20. Why They Are Better Everything YouWant (Broad Selection) + Deal + InstantGratificationIllustration by Peter Arkle; Cardboard Box: Judith Colling/Alamy2013 estimatesare as high as10 million 21. retailers vertically integrating and becomingproduct designers and not just product sellersGet Exclusive Products 22. exclusive products, made in the US 23. Be The First To Have Itbuild relationships with suppliers to makesure you receive product ahead of Amazon 24. Demand MAP Pricingyour win-win option 25. Seek Out Unilateral PricingProductsfor selected models effectively showcaseinnovative products and educate consumersabout their benefits 26. Leegin Creative LeatherProducts Inc. vs. PSKS Inc.an almost level field, if your suppliers do it 27. Streamlined Sales and Use Tax Agreement(SSUTA)explain to the customer where sales taxes goSupport Mainstreet America 28. Embrace Omni-Channel 29. The Nirvanahttp://www.loobaconsulting.com 30. Sell A Good Timetheatrical, immersive and more of a lifeexperience instead of simply a place toget something from showrooms toplayrooms 31. technology is the answer forexample, cash registers, a thing of thepast; associates on the sales floorequipped with hand-held devices 32. hyperlocal proximity marketing solutionTop Five Reasons toPurchase YourElectronics from BestBuy:1. Avoid ShippingFees2. Easy Return andExchange Program3. Accessible andConvenientMaintenance andCare4. Easy Financing5. Take it HomeToday!Educate The Customer 33. Reward LoyaltyKiks and more attractive and wellpublicized (airline-hotel style) 34. Promote Wiselylimited time offers; $ not % - single productcategories - GWP 35. Broaden Your Selection 36. Endless Aisles 37. Offer Click & Collect 38. buy online, pick up in store 39. Offer Online PriceMatchingSort Ofleveling the playing field - 10-20% premiumat most 40. Best Buy, in addition to offering fast free shippingto its best customers, is matching online rivalspricessmart? The jury is still out! 41. Even They Cannot Do It9% lower 14% lower 42. Join ShopRunner 43. Offer Trade In Services 44. And Most Importantly, EmbraceShowroomingits a fact of retailfight it with service superior service 45. Anytime, any place, anywhereWhat is Omnichannel?Seamless experience across channelsand touch points 46. Why Omnichannel?Informationhungry,pricesavvy,and mobileempoweredshoppers expect a one-screen,one-store consistentexperience across retailchannels and touch points.This means a movefrom connecting thechannels to blendingthe channels.Multi-Channelthe New Norm >50% of customers make multi-channel purchasesThe Rise ofSocial Media >78% of consumers trust peerrecommendationsMobileCommerce >38%of smartphone users havemade a purchase using asmartphoneOnlineShopping >15% Growth over the last year 47. Source: comScore 2012Omnichannel is accelerated by the rapid rise of mobile shoppers4 out of 5consumers use theirsmartphone to shop 48. In-Store is Preferred Purchase ChannelYESPreferred PurchaseChannel: In-Store76%74% of shoppers that visita mobile site or app for aretailer or brand make apurchase 49. Evolving the In-Store ExperienceAirport Wireless store featuring XQ Interactive Retail Solutions 50. XQInteractive RetailMobileTakeawayEducateAttractXQ StreamXQ AdPlayEngageXQ BrowsePurchase 51. Benefits of Interactive RetailCreate Great CustomerExperiences Create a fun, interactiveenvironment that pulls trafficin Provide in-depth product infoto make purchase decisioneasierIncrease Sales Present related items andpromos and centrallymanage ad campaigns Prevent walk-outs byengaging consumers even ifsales rep is unavailableBoost Sales Efficiency Interactive screens serve assales aid for retail staff Provide option of self-service 52. 1 Integrate your physical and online presenceBring the best of the online experience in-store withInteractive Retail technologiesImplement innovative in-store technologies2Empower Staff3 53. [email protected]@iQmetrixQuestions 54. iQmetrix.com | 1.866.iQmetrix 2011 iQmetrix. All right reserved. iQmetrix, the iQmetrix logo, RQ4 and other trademarks, service marks, anddesigns referenced in this material are the exclusive property of iQmetrix Software Development Corp. and/or its subsidiaries. 55. #CCSeries13Q&A 56. #CCSeries13Q&A // PanelistsJim DionFounder & PresidentDionco, Inc.Alicia FiorlettaAssociate EditorRetail TouchPointsMODERATORAllan PulgaManager of CommunicationsiQmetrix 57. #CCSeries13www.retailtouchpoints.com/connected-consumer-2013Thank You For Joining UsALL sessions and slides areavailable on-demand at:This marks the end of the 2013 Connected Consumer Series