How companies fight against people using smartphones to comparison shop
Courtny Gerrish, Stephanie Graham
Courtny Gerrish reportsPhoto: Video by tmj4.com
Retailers want you buying their goods, and they're making your shopping experience even sweeter with their tactics.
Before Jeffrey Goldstein buys anything while he's in a store, he whips out his smartphone, uses an app to scan the bar code of the item, and he comparison shops for the lowest price online.
"I will take a look at everything on the shopping list," Jeffrey says.
What Jeffrey's doing has been dubbed the 'Scan and Scram' or 'showrooming'. It's changing the retail landscape.
Shoppers are virtually price checking TV's, appliances, clothes and--even wedding rings! How many customers are scanning and scramming? One study found that 23% of adult cell phone owners used their phones in a store to see where they could buy an item for less. Five percent of those mobile price matchers bought the item online. Amazon and eBay even launched price comparison apps to make it easier for shoppers.
Klay Huddleston is a Digital Marketing Agent. He says, "It is frustrating to the stores to see this happening."
So frustrating that when digital marketing agency resource interactive went undercover 'show rooming'-- one big department store shewed them out. Huddleston says it's time for the big box stores to step up and compete. "The number of e-Commerce sales that were done thru this phenomenon, this trend, were large enough that retailers should be paying attention."
Some traditional retail stores are fighting back through a number of tactics. Target offers exclusive products you can't buy anywhere else. Nordstrom offers free shipping if you buy something in a store, or online. Macy's and Old Navy send in-store only coupons. Sears stresses the immediate gratification.
A Sears rep says, "You can actually get the product the same day you purchase it no waiting for something to ship to your house, no paying extra shipping
Charges to get it expedited."
But they'll have to try harder to convince show rooming shopper Jeffrey to stop.
"In the big picture you can save a lot of money," Jeffrey says.
Some stores will offer to match the prices of online retailers, so it may be worth showing the manager of the store you're standing in the price comparison you found online and see if they'll give you the same price.