There’s been a lot of press about “showrooming” the past couple of years. Traditional retailers are worried that customers will use their expensive stores to check out their wares, then find a cheaper source online.
With mobile phones it’s all too easy to price shop, look at reviews and decide if the brick-and-mortar shop is giving a good deal. If not, consumers can order online via their mobile phone, and that’s a lost sale walking out the door.
Is showrooming a real issue? I think so, but perhaps a bit overblown. Electronics retailers like Best Buy are probably the most likely to be at risk. Clothing retailers not so much.
In any case, mobile-empowered shoppers have spurred store-based retailers to be more price competitive, in some cases going so far as to match Amazon’s pricing. But this isn’t a winning strategy — retailers also need to provide real differentiation via their in-store experience. That means the store and its staff must provide enough value to convince a consumer to buy now and take the goods home, even if the price is a bit more than can be found online.
Thus far, most retailers have looked at smartphones as a threat. But they can also be a tool to add value to the in-store experience. That’s the key idea behind a new “TouchStore” solution announced today by TouchCommerce, aimed at increasing consumer engagement and conversion.
Imagine you’re shopping at a store and need some help. That’s an expensive but critical asset for the store. With TouchStore, a consumer can get the same kind of personalized help via a chat-like interface, that they could get via an online shopping site. Kind of like Amazon’s “Mayday” service, but available to help real-world shoppers.
Here’s a screen shot to show what that might look like:
The worm has turned! Consumers can engage with retailer or manufacturer experts by scanning a QR code or sending a text message. That gives the retailer some of the efficiencies enjoyed by e-commerce sites by sharing expensive staff across many stores.
I could see applications in retailers like Best Buy, still my favorite electronics retailer despite some challenges in recent years. I don’t mind paying a bit more if I can get expert help on more complex items. This sort of solution, if implemented and promoted properly, could enable Best Buy and other retailers to improve the in-store experience, increase sales and manage costs. Take that, Amazon!
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