Fear of showrooming is still widespread
Customers, who use their own Smartphone at the store however, still make many retailers cringe. The reason for this is so-called “showrooming“ – when customers go to a brick and mortar retail store to check out products and get advice, but then later on purchase the product online after realizing with a quick check via Smartphone where they can buy the item at a lower price.
But how are retailers supposed to offer the desired service and at the same time prevent customers from buying at the competitor? “Price comparison is the main reason why people do ‘showrooming‘. The easiest way to counteract this problem is dynamic pricing with the help of electronic shelf labels (ESLs),“ explains Niclas Qvist, Head of Marketing at Pricer, in a feature article on showrooming
“With ESLs controlled from a central unit, a retailer is able to update prices from a computer in an unlimited number of stores. This enables retailers to respond within seconds and adjust their prices to competitor pricing and ensure that the purchase is made at their store and not the competitor‘s“.
In this case, it is also important for the retailer to put a certain faith in the customer. Of course, this doesn’t eliminate the showrooming problem, but retailers can minimize the impact with dynamic and transparent pricing.