Can Process Improvement Eliminate Showrooming?

Showrooming is a relatively new phenomenon where a customer uses a bricks and mortar store to test and evaluate a product before buying it cheaper online. You’ve probably done it yourself. It can’t be long before, like a shoplifter, we see people thrown out of a store for using their smartphone to compare prices. It may already have happened.

The high street is suffering the double whammy of both the recession and the rise of ecommerce. While ultimately I think legislation will be necessary to protect bricks and mortar stores from their web based competitors the high street can begin the fight back by improving its business processes.

Retailers worried about showrooming can fight back but to do this they need to be clear on how they differentiate themselves from their online competitors. Many people for example will pay a small premium to get a product immediately rather than having to wait a few days for delivery. What this means is bricks and mortar stores must focus on their supply chain business processes. In addition the high street stores can offer customer post sale support, product training and immediate warranty replacement or returns that are more difficult do online. Again this requires a focus on post-sale business process.

It would be naïve however to ignore pricing. The recession has raised the importance of price to high levels and most people showroom to do a rapid price comparison between the price in store and the price they can get the same product online. Again this is an opportunity for business process improvement. Bricks and mortar stores can do price comparison as well.

Many high street stores are wedded to out of date, expensive to produce, catalogues of products whose prices are probably uncompetitive as soon as they are printed. There is no reason why bricks and mortar stores cannot automatically monitor competitor pricing and update point of sale prices in real time or produce a mobile app, with pricing that changes in real time, instead of a product catalogue.

Retailers are correctly looking to customer experience as a life raft for the high street yet incorrectly see customer experience in terms of gimmicks such as offering customers free wifi or a coffee shop without addressing their core business processes and the reasons why customers shop online.

When a customer enters a store the business has already done the hard part by getting the customer interested enough to get off the sofa and to visit their store. Improved business processes give them a better chance of converting that visitor into a customer and getting them to put away their smartphones.

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One thought on “Can Process Improvement Eliminate Showrooming?

  1. Interesting problem.

    The shopper goes to see the product, then buys it on line.

    But check out the NYC

    http://www.bhphotovideo.com/

    a very large retailer that has a) a superstore b) a paper catalog c) an online version of their catalog e) phenomenal stock, d) excellent service and 3) “good” prices.

    I expect anyone visiting BH will buy on the spot.

    You can buy the “same” thing in India for much less but I don’t think BH gets much competition from showrooming because they offer all of the options except a physical visit unless you drive into NYC.

    They probably lose some sales by people going to their web site, then shopping at a local (to the customer) large retailer. The smaller retailers probably cannot get close to the BH price.

    I find many people do their equipment research on line or in discussion forums, visit a local showroom and then buy from BH.

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