Countering Showrooming

Cognizant TM SHOWROOMING CAN BE A RETAILER'S FRENEMY Often shoppers will go into a store to experience a product but then complete the purchase online where they can find a lower price. This is the #1 risk facing retailers today. Consumer technologies are changing the game on shoppers' quest for value. Retailers who combat the threat that consumer technology brings into their stores by using it to their advantage stand to win. Differentiated Experiences Customer Service Price, Product, Promotion Location no longer yields the power it once did. Today products, prices, promotions and customer service are the foundational elements. Differentiated experiences are the final layer that creates the stickiness to keep shoppers coming back. Shoppers Want the Best Product at the Right Price and With a Compelling Promotion THE TOP FIVE PURCHASE INFLUENCERS ARE UNANIMOUSLY AGREED UPON: SALE! 1st 2nd 3rd Competitive prices, promotions, etc. Right product selection Quality customer service Sabing 4th 5th Fast, easy check-out Compelling loyalty program Online shoppers value the same retail fundamentals. However, they rank return processing higher (#3) and compelling loyalty programs lower (#8). Shoppers Hate Neglected Fundamentals Ranked Annoyances: Overall Shoppers Age 18-45 1st) Out of stock 1st 2nd) Price not marked $0.00 2nd Getting the retail fundamentals right is still what's most important 3rd) Can't locate product 3rd to shoppers. 4th) Associate unavailable 4th 5th Does not match prices S6 7th 6th) Limited payment options PayPal 6th Over the past three years having consistent experiences across 7th) Inconsistent across channels Jil 5th channels has grown in importance, especially for shoppers under age 45. Giving Shoppers What They Want Can Help I Combat Showrooming Match prices and provide outstanding customer service 29% 35% of shoppers want store of shoppers want store associates to match prices associates to have better customer service skills Equipping store associates with mobile technologies can enable better customer service 14% 10% of shoppers want store associates to have real-time access to product of shoppers want store associates to be more available in the aisles information, inventory and ordering Experimenting with New Shopper Experiences Will Endear Shoppers and Differentiate Retailers These shopper segments showed higher interest in *importance on a 1-5 point scale some of the newer mobile and social retail experiences. Member Sabings SHOPPERS AGES Interactive Product Member Discounts 45 AND UNDER Displays and Signs (e.g. Groupon) 3.4 3.1 MALE SHOPPERS Payment Using Mobile Wallet Smart Phone Geo Location 2.0 2.3 VS. SHOPPERS WITH INCOME ABOVE Product Comparison Smart Phone App $150,000 Customer Service Personalized by Mobile Text Experiences 2.7 3.1 3.9 To better understand shopper behavior and Cognizant recommended retailer response, download our full study at www.cognizant.com/shopperstudy TM .....**