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Case study: Can retailers win back shoppers who browse then buy online?

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Re: Case study: Can retailers win back shoppers who browse then buy online?

#11
post #2

I do the opposite. I don't want to spend the time driving around looking at stuff, so I research online, and then find where it's sold locally. 'cause I want it the instant I pay for it, and returns are much easier and immediate at a store. I do buy from Amazon, but Amazon is also one of the best research tools for local buying.

I'm shocked that people continue to "showroom" items. The local Best Buy has a terrible selection of items and the employees don't know any more about the products than I do. It doesn't make any sense to go to Best Buy for anything at all - there is almost literally zero value added by a big chain electronics store.

I can think of a few things that you just need to see or feel.

I was shopping for a monitor and all the reviews on Amazon are great but I can't see the difference on my current monitor or what it actually looks like despite all the specs listed.

I did buy it on Amazon but only after I saw the actual differences in store.

Re: Case study: Can retailers win back shoppers who browse then buy online?

#12
post #7

Off-topic: I couldn't find anything online about Benjy's, aside from the HBR article. Anyone know what's going on?

As a Brit I can remember the real High Street Benjy's experience - unbelievably cheap sandwiches that seemed great at first, but, by Thursday, you never wanted to eat one of their sandwiches ever again!

https://en.wikipedia.org/wiki/Benjys

Sadly they did go bust and people started going elsewhere for their cheap meal deals.

Re: Case study: Can retailers win back shoppers who browse then buy online?

#13
I'd buy more locally if there was more locally to buy. I know it's a small town, but the availability of seemingly common electronics is atrocious. I can't locate, let alone buy, a monitor with greater than 1920x1080 resolution within 100 miles. A keyboard with decent mechanical switches, any form of non-toy quadcopter, even a Raspberry Pi/Arduino/Beaglebone? Somewhere in Seattle or Phoenix, if I'm lucky.

I'd kill to have a Fry's in the state.

About the only form of electronics I'm set for in-town is headphones, and that's just because Headroom was built up from this city.

Re: Case study: Can retailers win back shoppers who browse then buy online?

#14
post #2

I do the opposite. I don't want to spend the time driving around looking at stuff, so I research online, and then find where it's sold locally. 'cause I want it the instant I pay for it, and returns are much easier and immediate at a store. I do buy from Amazon, but Amazon is also one of the best research tools for local buying.

agreed, an accurate in store inventory listing on retailers' websites are vital for this to work. Nothing more frustrating then doing research online, getting to the store to find out they don't actually have the item in stock, or cant't find it. Then its straight onto an online shop - and not the brick and mortar retailers.

This is the holy grail of "omni-channel retail" - of being able to offer a consistent experience across all channels. But spend a few days inside any large retail company and you'll be shocked at how badly organized they are. Not only do their systems not talk to one another, their people in e-commerce and b&m operations barely know each other.

Re: Case study: Can retailers win back shoppers who browse then buy online?

#15
Sigh. I will buy online for most things. Things I don't: groceries, clothes. (Why: Our meat guy takes orders and we pay and pick up. Avg bill~$55. Grocery doesn't have automated picking -krogers-. Would use it if we could.)

Now, why do I buy online? There's many reasons.

1. I'm price sensitive. I don't make that much, so my money must count. Doing X means not doing Y, even for small values of X. Online is just cheaper.

2. Your place doesn't have what I want. I've went into electronics stores, looking for X. Except what I see is some version less and something much higher. Or they play with model names, where kwin-123xyz-tgt is at Target and kwin123xyz-wmt is at Walmart, and have no differences, other than a model ID that's dependent on store, to prevent price matching.

3. Salespeople are idiots. I've had them try to "inform" me of all sorts of inane "Its really true that..." and other lies or mistruths. I don't need your research, salesperson. Nor do I think you deserve your commission for your BS.

4. Salespeople are pushy (and worse; hard sell). Nothing turns me off from shopping than that behavior. I hate it, and will walk out as soon as they start engaging in it. One case I went back to them after making the sale and told them that their hard sell is why they did not make the sale.

5. Lines suck. As in, really suck. I have the non-choice of waiting in a too long line for some disinterested clerk to ring stuff up. Compare this to Amazon and other web stores where I can click buttons and "BUY....DONE!". Yeah, there's shipping. But I can get on with my day. Lines suck time I'll never get back.

6. Other shoppers. We're approaching the 'Black Days', where you will be neck-to-neck with other crazed deal-going shoppers. Some are in various states of unbathedness whilst many others are completely rude. The net eliminates this, completely... unless you go to forums like Reddit and intentionally find areas like /r/SRS

7. Going to another store = loads to time. I'm looking around 5 mins to park and walk, 10 mins to find, and 5 mins to pay, and 2 mins to leave. Total 22 mins. On the net, I can search a dozen stores at the same time. And nobody complains if I search another company while on the first's web site.

8. I don't get real-time reviews on items in store. I have to rely on the box (marketing), the ads (more marketing), and general feel if there's a sample. Online, I can see the reviews of pretty much anything, can analyze trends in good and bad, and can make a generally informed decision.

9. Pricing issues. I regularly get problems with incorrect prices on things. Usually it's taken care of, but turns out to be a big "Stop registers, send someone to look, and report back". Retarded and inefficient.

10. Coupons/cards. I have an account on some eCommerce site. Or I use Paypal directly and not make an account. It just works. Versus the brick and mortar stores, where they play games with "discounts, but not this way, and not here, but only on that with that". And you need those damned shopper cards. It's one thing to have a single card, but every store wants you to have one.

That enough reasons why?

Re: Case study: Can retailers win back shoppers who browse then buy online?

#16
post #11

Earlier quoted context omitted.

I'm shocked that people continue to "showroom" items. The local Best Buy has a terrible selection of items and the employees don't know any more about the products than I do. It doesn't make any sense to go to Best Buy for anything at all - there is almost literally zero value added by a big chain electronics store.

I can think of a few things that you just need to see or feel. I was shopping for a monitor and all the reviews on Amazon are great but I can't see the difference on my current monitor or what it actually looks like despite all the specs listed. I did buy it on Amazon but only after I saw the actual differences in store.

Yeah for something like a tv or monitor, you have to see it in person or you're rolling the dice. How's the glare? How does it look from other angles beside straight on? Hows this 4K res compare to the one next to it?

Even if Amazon could provide a Hololens sessions for me to look at the product (which maybe they should do at some future Amazon retail location) alongside all the specs and reviews, it's still not going to bridge the gap of seeing it in person.

Re: Case study: Can retailers win back shoppers who browse then buy online?

#18
post #2

I do the opposite. I don't want to spend the time driving around looking at stuff, so I research online, and then find where it's sold locally. 'cause I want it the instant I pay for it, and returns are much easier and immediate at a store. I do buy from Amazon, but Amazon is also one of the best research tools for local buying.

Yeah, I'm a mix between the two. I do use Amazon because it makes it easy to compare lots of products and prices and when they have something I want with Prime shipping (and occasionally same-day shipping) it beats driving around to the store.

At the same time, if something is available at roughly the same price (can be a little more) at a local store, I would just as soon pick it up in person and avoid the shipping delay. Essentially, I'm willing to pay a little more for fast delivery but I'm just as willing to pay a little more for the "instant gratification" of just being able to go pick the thing up.

The main difference I've found is that lots of physical retail stores often don't have what I want or their online inventory system is unreliable so something will show as in stock locally but when I go to the actual store, it's nowhere to be found. Shopping online (for me) is often more about finding the exact item I want than it is about saving a few bucks by ordering direct.

Recent example: a friend wanted me to build him a new desktop PC for general use and for gaming. Maybe 5 years ago I'd have gone straight to Newegg because no retail location would have the selection of parts needed to build the best PC I could build within his budget. But now we have a Microcenter nearby and while smaller components (cables, RAM, etc) might cost a few dollars more per item, they sell CPUs at a sizable discount as loss leaders so the total build is roughly equal to the Newegg price plus shipping cost. In that case, it's nicer to just go to the store, compare stuff like build quality of computer cases in person, get everything home that day (no shipping wait), and have a local place where I can go if something turns out to be defective. No waiting for lengthy RMA shipping delays, just an hour on a Saturday to stop in and swap something out.

So I guess from a customer's perspective, retail is still a good option and worth some level of cost premium as long as selection is good and I can verify that the items I want are in stock. The other bit I haven't mentioned is access. In the case of Microcenter, I just walk in, grab a cart, and pick up all of my parts. When I just bought an iPhone to replace my girlfriend's older model, I ordered direct from Apple rather than going to the Apple store. Apple store would've had the phone in my hand on the same day but it is located in a shopping mall. I really, really hate going to that shopping mall because it means driving around a parking garage and then navigating floors of shops and escalators and crowds in order to get to the Apple store. I'll totally wait a day or two for shipping if it means I don't need to step foot in the mall.

Re: Case study: Can retailers win back shoppers who browse then buy online?

#19
Its interesting that none of the case study results faced reality; you're obsolete, pivot or close. Lots of long winded meandering that boils down to fiddling while rome burns. You've got legacy revenue for awhile, real estate, and employees, take advantage of it and pivot. "I know, we'll try to undercut the entire internet" LOL "We'll just work harder than everyone else" LOL "We'll sell only the most expensive products to the richest customers because they like to waste time" LOL "We'll define excellent service as being obnoxious and in your face as possible" LOL The first consultant is featherbedding "We need more consultants to get more data".

For example, Barnes and Noble has abandoned selling books and has pivoted semi successfully into "convenience store for birthday gifts" complete with wrapping. They still have a section of the store for books, but its not really a book store anymore. They have a better chocolate section than my local discount grocery store! In the specific example, moving in on B+N turf isn't going to work as a strategy unless you think you can out B+N, B+N itself.

AFAIK no one has ever tried food and consumer electronics shopping, so eat "real" food while showrooming sample TVs and then order one shipped to your door. This is not entirely insane. A liquor license and pleasant wait staff might discourage showrooming... "Hey everyone gets a round on the house, Joey bought a new TV" woo hoo ...

Something to think about is there is more retail CRE square footage today than ever in the history of the country and its all more or less becoming useless as currently designed and zoned. You may end up pivoting totally out of old fashioned retail, perhaps a fitness club, or barber shop, or restaurant. You want to be the first retail market to become an exercise club not try to be the last. Locally food and other retail stores that have closed have successfully opened as credit union branches, exercise club, restaurants, and car dealerships, more examples probably exist. To make a large scale national strategy, it might be useful to gather this small scale success data. Apparently you cannot pay the rent selling turnips in that specific retail frontage, but you can pay the rent selling time on a bench press machine, interesting...

Alternately you can ride right down into a crater, like that crazy general in Dr Strangelove, if it no longer works just keep on doing what doesn't work but harder than everyone else, what could possibly go wrong? In all honesty if you have no future it does show bravery of a sort to keep doing what you're doing until the bankruptcy, but admit what you're doing, at least, you're just riding a dead business model until impact with the ground, milking the last cash cow till it becomes pink slime.

Re: Case study: Can retailers win back shoppers who browse then buy online?

#20
Where online really wins for me is that I don't have go shopping along with hundreds or even thousand of other people after work or in the weekends.

I get extremely cranky when I need to stand in line or try to make my way passed other "less efficient" shoppers.

Also the stupid attempts at up-selling in electronic stores doesn't help.

Clothing I do prefer to shop in real stores though, but that's mostly because sizes aren't uniform and generally confusing.

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