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The Showrooming Challenge
eCommerce Strategies to lift the top line
About ideaLEVER
• 15 years of eCommerce
• 18 years of developing websites
Fear is Your Enemy
Recent Pew
research has found
that 46 percent of
showrooming
shoppers actually
ended up making a
purchase in-store in
2012
Get on the Bus
The Trend is Irrefutable
Apparel chains
Online sales
2012-1017
Be Part of the Decision Process
• Pre shopping
• New tools for
new times
• No more Yellow
Pages
• SEO popular
brands
• Google ads
Mmmmmmobile
A Tale of Two Sites
Mmmmmore Mobile
The Trend is Irrefutable
2012-1017
mCommerce
growth
Mobile
optimized
websites
Phygital & Omni Channel
• Convergence
• eTailers getting
physical
• Big box – small
box
• New Amazon
distribution
centres
Phygital Innovation
Virtual
Stores
Concierge
mobile App
Socialize
• Create a
persona
• Talk about
customers
• Video
• Coupons &
rewards
• URLs &
hashtags
Offer More
• Leverage staff
• Returns
• Follow up
Conclusion
• Get on the bus if you’re
not already.
• Tackle eCom in stages.
• Strategically deploy your
resources.
• For a copy of this
presentation or for a free
eCom audit of your
website contact:
vwong@idealever.com

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Notas del editor

  1. Many of our clients are retailers, but many are pure-play eTailers, and manufacturers who sell direct, so you could say I work for the Dark Side.
  2. Don’t be afraid every time someone pulls out their phone in your store! Not all showrooming is strictly about price and the last thing a shopper wants is attitude from a sales associate that thinks they are already a lost sale!A recent survey of 1,000 mobile users by data firm Wave Collapse suggests that the showrooming stampede to Amazon may be overblown.54 percent of respondents said they are looking up other local stores, while 53 percent said they were looking for online pricing.Recent Pew research has found that 46 percent of showrooming shoppers actually ended up making a purchase in-store in 2012 – an 11 percent increase over 2011.Combination of decisionsSocial validation, reviews73% of smartphone enabled shoppers preferred using their phone to retail clerks for basic sales assistance.You are not going to stop it, so how do you limit its impact on your store sales?
  3. First, you can either get on it or get hit by it.If you want to continue to thrive in the new retail reality, you need to get an eCommerce site. Yes, I have said that brick and mortar retail is here to stay, but I also believe that retail has fundamentally changed. This change is as significant as when retailers all moved to networked POS systems back in the ‘80’s and ‘90’s. Retailers who made that leap were able to out compete their competitors who didn’t. Canadian retailers have been much slower to embrace eCommerce than their US counterparts.
  4. A 2012 survey by Trendex on Canada’s apparel industry found that only 41 percent of Canada’s specialty apparel CHAINS had an eCommerce site. Not single-store retailers, but chains.online sales in the US are expected to grow at a breakneck pace of 92 percent in five years between 2012 and 2017 (from $225 billion to $432 billion). Or 18% a year. This is faster than traditional retailerThe benefits of that growth is going to a small number of players who are establishing a foothold.
  5. The growth in eCommerce is only part of the story and reward of selling online. Most in store shopping trips now start with online pre-shopping. This is like mom flipping through the flyers that came with the Courier or North Shore News every week. Same thing but different tool. Now pre-shopping starts at Google. All you have to do is look at how papers are floundering and the yellow pages has been decimated to realize that the decision starts online.If you do not have a web site that tells shoppers what products you carry you will be invisible as people plan their shopping trips. If people don’t know what you sell, you won’t get the traffic through your door. Showroomers or not.If you sell popular brands make sure you focus on seo on those brands and your service area.Google Ads: Target them geographically. Include a CTA for a coupon to be used in store.
  6. Canadian retailers have been slower to embrace eCommerce than their US counterparts.Mobile search is predicted to overtake desktop search by 2015. While mobile search is increasing in leaps and bounds, desktop search is starting to shrink. 28% of mobile searches resulted in conversions. 55% of mobile search conversions take place within an hour (store visit, call or purchase)Locations/Directions/Hours are top(comScore, the most common activity among these shoppers was using the store locator (70 percent), followed by checking prices (56 percent) and researching items (54 percent).)Price comparison & Promos nextThen down to product info, availability & reviews.
  7. Integrate your inventory with your store so your shoppers know if the product they are interested in is available before they leave their house or a competitors store. Pick up in store: Super easy and gets someone through your door. Opportunity to upsell.In store Pickup: A 2012 IBM study found that 67 percent of respondents consider in-store pick up of online purchases to be important. And 50 percent of those who do pick up online purchases in store were likely to buy additional items while in store. A related study found that only 26 percent of small retailers offered this service.eCommerce than their US counterparts.
  8. as a proportion of online sales, is expected to rocket by 287 percent (from $8 billion to $31 billion) in that same time period from 2012 to 2017 (60% a year) (Forrester Research). This is the green field.only 35 percent of retailers in a 2013 US study have a mobile-optimized website. Canadian retailers are typically slower to embrace eCommerce innovations than our US cousins so surely our number is even lower here on home soil.This says a couple of things to me: 1) Canadians are typically slow adopters. 2) This is a tremendous opportunity for you to own the mobile Space.
  9. It has taken a decade and a half but the online and physical worlds are starting to converge. Pure play eTailers like Warby Parker and Bonobos are opening physical locations. They know that consumers like the store experience!Big Box retailers like Best Buy that built their model around price competition are changing their formats to ones that look a lot like the traditional retailers they crushed in the 90’s and are opening smaller stores to act as fulfillment centres.Amazon is investing heavily and rolling out same day delivery in select markets in the US to give shoppers the same sort of immediate gratification that traditional retailers are already dominant in.
  10. Competing on price is a losing proposition. The 90’s are over and the big box retailers like Best Buy and Barnes & Noble that threatened mainstreet over the last 20 years by driving margins down have themselves been hammered by Amazon. Even Walmart is threatened by Amazon and recently stopped selling Kindles. These stores are all big and anonymous. You aren’t.Facebook, Pinterest, Twitter all help you and your store create a persona and engage your customers. Share your enthusiasm and knowledge with your customers. Don’t just talk about yourself and sell. You don’t want to be that guy at the party that starts asking everyone about their insurance coverage or talking about how they are making great money with MLM. Talk about your customers, what inspires you, and what you find exciting or interesting. Video: Vine and Instragram videos don’t have to be a big deal but can have a huge impact on your followers. Show them the latest shipment, your favourite new product. They work because they are personal and quick not slick and polished. Create a youtube channel and do demos.You can also leverage social behaviours your shoppers are already doing. Shoppers are likely already posting selfies of outfits from your change rooms so post a social sign in the change room: Like your look? Post it to facebook, twitter, or Instagram with #whatever and we will pick 5 lucky winners.One US chain has terminals in their change rooms that let shoppers take a picture and post it directly to their Facebook page (after liking the brand of course).Have your change room staff engage the shoppers and offer to take pictures when people are trying on outfits. All you need is a sales associate that is outgoing. “not sure about that outfit? I think it looks great but why not take a photo and see what your friends on Facebook think?”Blog: Not for everyone I know and I have advised more than one customer to take their blog down Redeem in store coupons for fans, followers.Check-in to get bonusLeverage your traditional ads with URL’s social URL’s &, Hashtags
  11. If I am standing in your store looking at a product I am planning to buy, nothing is more convenient than picking it up and taking it home. I want to buy, so help me.You have people so use them. This is the big thing that eCommerce lacks. Returns are easier and faster if there are any problems with my purchase so promote that. Amazon will never be able to compete with the confidence and convenience you can offer as a physical retailer. Encourage customers to call.If you do compete on price, sell unique bundles that make direct price comparison more challenging. Cell phone companies have been doing it for year! These bundles don’t have to be discounts products, but could be something that encourages the customer to come back or something for maintainance.Follow up. If someone is buying a big ticket item (and if it fits your brand) give them a call or a follow up email a few days later to check on the purchase. How is it? is everything ok? Great!” Give your customers a Wow moment.
  12. If I am standing in your store looking at a product I am planning to buy, nothing is more convenient than picking it up and taking it home. I want to buy, so help me.You have people so use them. This is the big thing that eCommerce lacks. Returns are easier and faster if there are any problems with my purchase so promote that. Amazon will never be able to compete with the confidence and convenience you can offer as a physical retailer. Encourage customers to call.Follow up. If someone is buying a big ticket item (and if it fits your brand) give them a call or a follow up email a few days later to check on the purchase. How is it? is everything ok? Great!” Give your customers a Wow moment.