Showroomers exhibit more loyal behavior than non-showroomers, making them an ideal target for retailers, according to a study from Aimia, a global leader in loyalty management.
Retail showrooming behavior, whereby consumers browse for items in-store before using their smart phones to find a lower price online, is propelled by Millennials (age 19-29) with three quarters of US showroomers coming from that generation.
However, according to Aimia’s “Through the Looking Glass” retail brief released today, showroomers are also active participants in loyalty and reward programs, thus making them an undervalued consumer audience for retailers.
“Showroomers are more likely to participate in loyalty programs, are more willing to trade personal details for rewards, and are more interested in mobile commerce,” said Rick Ferguson, Vice President, Knowledge Development, Aimia. “Retailers should take advantage of these behaviors to transform showroomers to become loyal – and paying – customers.”
Retailers have an opportunity to harness showroomers’ greater willingness to engage in reward program memberships. Aimia’s research shows the typical showroomer is male, owns at least two digital devices, is active in social media, and is excited by mobile commerce. The research also found American showroomers are:
- 67% more likely than a non-showroomer to participate in a travel reward program membership
- 20% more likely than non-showroomers to participate in a retail reward program membership
- Three times more likely than non-showroomers to respond to a location-based mobile offer
“The solution to embracing showrooming behavior lies in retailers leveraging their shopping data to get consumer insights that will help shape their marketing strategies and drive in-store purchases, ” said Ferguson.
“The tools of loyalty management provide unparalleled insight that can help retailers reinvent retail and build stronger relationships with consumers.”
Retailers can influence showroomers by leveraging the tools of loyalty management including:
- Using hard benefits to reward desired behavior – offer in-the-midst showroomers to join your rewards program with a rich bonus offer on their first purchase
- Linking soft benefits to upper-tier smart phone users – identify showroomers within the upper tier of your most valuable customers, and lavish them with soft benefits such as exclusive access, special benefits, experiential rewards, location-based offers and other privileges that resonate with your target audience
- Stealing the online thunder – offer a showrooming app through your own loyalty program, allowing you to hold on to customer insights
- Deploying an aggressive partner strategy – work with and share opt-in data with partners and suppliers to combat showrooming together
See infographic at http://photos.prnewswire.com/prnfull/20120925/NY80300-INFO
- Consumers “showroom” at Best Buy, Walmart, but buy at Amazon
- Retailer efforts fail to slow “showrooming” trend
- How to close the sale online or in-store with opportunistic shoppers
- Many shoppers still using stores as showrooms for later online buys
- Loyalty programs adapting to the digital age
© 2012, TechJournal. All rights reserved.