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Google Finds the Silver Lining to Showrooming

Posted by admin on 5/21/13 11:00 PM
Topics: college retail, showrooming, retail technology, eCommerce

The following excerpt, from the article Google finds the silver lining to showrooming, was written by and published on RetailCustomerExperience.com. View the full article for information on how to take advantage of the study's findings.

As the number of smartphone-toting shoppers has increased, so too has the specter of showrooming. No retailer wants to think a competitor, especially a virtual retailer without the overhead of a brick-and-mortar location, has effectively set up shop in their store. But up to now, it hasn't been clear just how big a deal showrooming really is.

It turns out it's huge. And it also turns out that shoppers with smartphones might not be the threat retailers thought they were.

According to a new study from the Google Shopper Council, a group of shopper marketing experts, 84 percent of mobile shoppers use their phones to assist them in their shopping while in physical stores.

The council's new report, "Mobile In-Store Research: How in-store shoppers are using mobile devices," said the single largest task for devices in store, as reported by 82 percent of respondents, was using mobile search to find information about products. Other activities included comparing prices (53 percent), finding offers and promotions (39 percent), finding locations of other stores (36 percent) and finding the hours of the store (35 percent).

What's more, the Google report said that web surfing on a mobile device wasn't just used for expensive or "high consideration" purchases. Instead, the report found that in every category, from household items to pet care, 70 percent of smartphone users consulted their devices in-store.

The Silver Lining

Even with all the reliance on smartphones while shopping, the Google Shopper report uncovered some surprising good news for retailers: the basket size, i.e., the amount of a shopper's purchase during any one trip, was 25 to 50 percent higher for frequent smartphone users than moderate smartphone users. Whereas the average user spent $250 per trip, frequent smartphone users spent $350 per trip.

"(U)nderstanding and embracing this new retail behavior can open up new opportunities for brands to connect with customers in key consideration moments," said Adam Grunewald, product marketing manager for mobile ads at Google, in a post on the Google Mobile Ads blog.

 

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