The countdown to the Black Friday and Cyber Monday sales has officially begun. With experts predicting shoppers will spend double the amount they did in 2015 – this year’s retail shopping bonanza is expected to be bigger than ever.
Retailing: Embrace showrooming to ensure customer loyalty
By Mark Hiller, general manager at Lexmark South Africa
As trends like online shopping, smartphones and social media have matured, so has the way in which customers research and purchase products and services.
Although physical stores are far from dead, retailers continue to adapt their business models. For example, Amazon.com is trialling the use of online shopping pick-up lockers at garage forecourts, making it even easier to buy online and collect the goods at a convenient location.
Mobile devices are the bridge between our physical and digital worlds and they play an ever-growing role in the multi-channel customer journey. According to the Mobile Commerce Compendium, nearly six out of ten (57%) smartphone owners use their device to search information while out shopping. Retailers lose a third (32%) of shoppers to in-store mobile use.
This is why last year 'showrooming' made it into the Oxford English Dictionary defined as 'the practice of visiting a shop or shops in order to examine a product before buying it online at a lower price'.
The different communication channels that inform customers in and outside stores, the different purchase and pay channels and the different delivery channels are now connected. Collectively, this is known as omnichannel retailing and ties closely into how businesses can overcome the challenge of showrooming.
The reality is that the price tag isn't the only factor that impacts a purchasing decision. Trust, ease of use and service level is equally important. If retailers can provide knowledgeable, accessible staff and easy access to goods and services via any channel in a consistent manner at a competitive price, they can ensure customers will showroom and shop from the same store.
Of course, this is easier said than done. What have traditionally been separate business units need to become a single, completely integrated sales process. This must handle every element of the process from the sale (regardless of source) through to logistics, delivery - and return if needed.
At the front end, implementing capture and workflow solutions ensures paperwork is kept to a minimum and is processed efficiently. This can help ensure staff spend as much time as possible on the sales floor instead of doing back office admin.
Furthermore, in-store messaging that can be automatically updated to better reflect the channel mix and respond to changes in price and stock can help deliver sales. This can be augmented by including other online elements, such as a QR code or/and linking to a retailer's loyalty programme.
Even the back-end has a part to play. Consolidating back-end logistical processes might not seem like the most obvious way to address a customer-centric challenge. But when a retailer wants to deliver a truly omnichannel approach every aspect of the service needs to be seamless. This includes delivery to the customer's home, for 'click-and-collect' or for store inventory.
Across complex networks of warehouses, distribution centres and stores, retailers must be able to deliver consistently high levels of service. Furthermore, if leading retailers are to compete effectively against the online only retailers, the organisation needs to achieve profitable, cost-efficient operations.
This is where powerful process and content management solutions can be brought to bear, offering the back-end support to help retailers gain control over the tremendous amounts of data generated in the movement of goods. Improving document control and retention ensures instant access to relevant information to respond to shop/vendor enquiries, eliminates the need to fax or email forms between departments and facilities and reduces operating costs. Reducing all these lengthy, costly and error-prone tasks mean customers get the service level they require and will stick with the retailer regardless of channel.
The end result is an infrastructure of complete service and support that is consistent, regardless of the channel used. It enables retailers to embrace showrooming rather than fight it!
Lexmark is uniquely focused on connecting unstructured printed and digital information across enterprises with the processes, applications and people that need it most. For more information, please visit www.lexmark.com
Lexmark and Lexmark with diamond design are trademarks of Lexmark International, Inc., registered in the U.S. and/or other countries. All other trademarks are the property of their respective owners.
(+27) 011 244 2611
If like most marketers, you believe that retail is the centre of the marketing universe then it may come of some surprise to you, to learn that it’s the consumer who is now that ’centre’.
As the physical and digital worlds continue to merge, it is becoming clear that as a retailer it is all about that providing the consumer with that consistent brand experience to strengthen that relationship and help them in their path to purchase.
When that must-have item comes on sale while you’re browsing your favourite online shopping site, and before you know it, you’ve purchased it – to spoil yourself because you deserve it.
With a spate of armed shopping mall robberies taking place around the country over the past six-months - especially in Gauteng and the Western Cape – more South Africans are set to explore online shopping options in the run-up to this year’s festive season.