The Nearbuy Blog

Discussing trends in mobile retail and multichannel shopping.

Best Buy and showrooming: If you can’t beat them, show them

Bryan Wargo - Monday, May 21, 2012

The future of retail is an “omni-channel” experience, which means selling to consumers on all channels –online, mobile and in-store – simultaneously. 

Retailers of all categories are trying to understand the massive transformation in shopper behavior brought about by the mobile internet, none more than the electronic retailers like Best Buy.  The author of this article, Christopher Krywilak, expertly puts it that retailers need to sell to the shopper in all the different channels they offer, simultaneously.  It is no longer a viable strategy to assume that shoppers won't have every piece of information about a product or service in the palm of their hand.  Retailers must embrace showrooming and devise new strategies that leverage the shoppers ability to conduct all the research they need, right there in the aisle of the store.  

One interesting concept is how to turn showrooming behavior into a financial reward for the brick-and-mortar retailer.  At the end of the day, the intent of manufacturers is to sell their wares, independent of channel.  Retailers play a critical role in allowing consumers to touch, trial, and feel products before they make a purchase decision.  If a retailer can prove their role in a sale, manufacturers will be willing to compensate them.  We see this today with retailers charging for shelf space, in-store signage, etc.  There is no reason Best Buy shouldn't be able to report the number of units of products they sell direct to the shopper and the number of units they were part of that sales process.  With the appropriate in-store technology, the Best Buy's of the world will be able to report on their value in selling to the consumer.

Link: Best Buy and showrooming: If you can’t beat them, show them - Mobile Commerce Daily - Columns via www.mobilecommercedaily.com

 

The Smartphone and the Revival of Impulse Purchases

Bryan Wargo - Monday, December 19, 2011
From mobile payments to enhanced loyalty programs, location-based coupons and in-store mapping, the smartphone is one of the biggest game changers for retailers since the advent of the credit card. But if you think about the smartphone as an independent piece of technology you’re really missing the point: with the right infrastructure in place, the smartphone can not only level the playing field between brick-and-mortar and internet retailers, it could actually reverse the trend of market share going to online stores. Let me explain.

It’s no secret that as consumers have become more comfortable with the internet and e-commerce, the way they shop has changed drastically.  Forrester Research published that half of all purchases have an online component associated with them. From researching product reviews and asking the advice of social networks to doing price comparisons and checking for rebates, consumers have not only become more discerning but they have changed their methods of shopping. Gone are the days where shoppers made their purchasing decision solely in the store. Instead, they are doing it from home, work - or wherever they can access the internet.

Enter the smartphone! Shoppers can now complete the online component of their shopping anywhere, not just anywhere they have a computer or laptop. Providing guest Wi-Fi is an open invitation from the retailers to the consumers to seize the advantages of the online and the offline shopping experience. By offering free guest Wi-Fi, retailers enable consumers to do all their online research in the store, and also scrutinize and handle the product they are interested in. And nothing compares to the instant gratification of buying it in the store with the comfort that they have done their research and they are getting a good price. The price doesn’t have to be the same as lowest online price - it just has to be close enough to offset the additional value the consumer receives from buying their products within the store, such as taking the product home with them immediately as opposed to waiting, and having the ability to easily return the product to the physical store if they need to instead of shipping it back to the online retailer.

Retailers who embrace this new paradigm - accepting this new shopper experience and encouraging and enabling users of smartphones in their stores - have a lot to gain and can take back the momentum that the e-commerce retailers have won from them. This is my 2012 battle cry to all retailers: Open up that in-store WiFi! Make it easier for shoppers to use their smartphones, because they are going to use them, whether they’re in your store or not. Embrace this change and you have a chance to open up a powerful new retail channel.

If you are in retail, any reasons why you wouldn't want shoppers connected to your store WiFi?

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