How personalization can combat the “showrooming” effect in Retail
Our two cents:
While online sales still only makes up only about 10% of total retail sales, the overall growth of the category is what causes people to notice. Retailers such as Walmart and Target are forcing themselves to invent new ways of dealing with what is called the “showroom” effect whereby people shop in physical stores, but purchase online. One such strategy retailers are beginning to understand is the power of personalization. Personalization is not customization, but rather a unique set of content delivered to an individual. Sometimes personalization comes in the form or recommendation engines (think amazon) but it can also be deployed using average, ordinary price tags. Offering people personalized prices through their mobile device may be the most effective way to beat showrooming,” says Anne Zybowski, director of retail insights for Kantar. This makes a lot of sense; a personalized price on delivered exclusively on a personalized device.