Showrooming in Canada: The Price of Keeping Buyers In-Store
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Transcript of Showrooming in Canada: The Price of Keeping Buyers In-Store
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Showrooming in Canada: The Price of Keeping
Buyers in Store
Jeff Lancaster, CEOCatalyst Canada
catalyst.ca
@jefflancaster
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Study: Showrooming in Canada
Download white paper now at: catalyst.ca/showrooming
+
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46%
54%
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We Asked 2,000 People About The Winter Boots
13% for 2.5, 23% for 5, 48% shoppers would leave for 10% discount
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How Big is Showrooming?
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Impact Online Discounts Have On In-Store Purchases (Canada)
0% 5% 10% 15% 20%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Discount
% S
hop
pers
Sta
yin
g I
n S
tore
Canada
US
Source: Retail Showrooming in Canada: Winning the Consumer and the Price of Keeping Buyers In-Store; Catalyst/GroupM Next, 2013
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Immediacy
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The Value of Discount Matters Too
$15 discount: majority of Canadians will leave and buy online$5 discount: US consumers will leave and buy online
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What Consumers Consider
1. Size of the Online Discount
2. Familiarity with the online retailer
3. Shipping
SAVE $25
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Shipping
• When we looked at 2 week shipping option (vs. 1 week) - 5% more consumers would simply purchase in store
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Other Factors 1. Different language markets
2. Whether consumers would be “in-market” for the product or not
3. Presence of Children
4. Use of Public Transportation
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The Retailer Response
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Responses to Showrooming
1. Pricing2. Which Shoppers to target3. Loyalty4. Behaviours5. In-store exclusives6. Search7. Mobile Apps8. Geofencing9. Control
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Pricing
In Canada staying within 10% of the price – gives you a fighting chance
- Can your pricing become more dynamic to reflect market?
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Price Matching
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Identifying Your Targets
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Who Are the 10% to Win Over?- Created statistical model to rank shoppers from likely to stay to
unlikely to stay
The 10% to win over are:- Slightly more likely to be female- Average age = 58 years old- Median income = $50,000 annually- Half have some college or higher education.
Casual online buyers:- 38% buy only once per year- 53% buy online once per month- 5% once per week- 4% more than once per week
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Loyalty programs
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What In-Store Behaviors To Target?
When a shopper…
- Compares alternatives + - reads reviews on mobile phone
= Less likely to stay in-store
- Talking with an associate make them more likely to buy in-store (12.5% more likely)
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In-Store exclusives
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Where are you on Mobile Search?
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Google’s new Enhanced Campaigns
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Own search shelf for key products
• Reviews• Best price• Compare• Cheap
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Mobile app
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Geofencing
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Can you control the showroom?
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Next Steps for Retailers
- Understand your customers
- Develop a mechanism to understand the online marketplace
- Extend the conversation beyond price- Loyalty, search, apps, behaviour, control
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Thank You
catalyst.ca@Catalyst_CA
Download white paper today at: catalyst.ca/showrooming