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Understanding Andy Shortly, we'll answer this article's opening question about dealing with Andy. Right now it's important to note that he's part of a growing group of shoppers who are making life difficult for retailers. Research shows that many active showroomers are similar to Andy: males between the ages of 18 and 34. Of people in this demographic who own smartphones and who have recently shopped for products in brick-and-mortar stores, 64% say they have done some showrooming. That figure compares with 52% for the general public with the same characteristics. The data comes from a survey by Forrester Research (forrester.com) in Cambridge, Massachusetts, and Aprimo (aprimo.com), an Indianapolis-based marketing firm. Look for more Andys in your store: In the same Forrester-Aprimo survey of young men owning smartphones, 47% of respondents said they planned to increase the usage of their devices for researching prices. "This is alarming in an environment where there is price competitiveness," says Forrester's Sucharita Mulpuru-Kodali. (See page 64 for our Q&A; with her.) Price transparency What's driving the growth of showrooming? It's really no secret. Personal technology is getting more powerful every year, breaking down the concrete walls that have long blocked public access to pricing information around the country and the world. "Price is transparent today," says James E. Dion, president of Dionco (dionco.com), a Chicago-based retail-consulting firm. "And showrooming is the end result of price transparency." And price—not the availability of a related style unavailable in a store—does seem to be the determining factor in a showroomer's purchase decision. Some 75% of purchases that start in the store and end up online are due to price, according to a survey from Fluid Retail (fluidretail.com), which offers ecommerce solutions. This price sensitivity seems to be characteristic of the population in general. A good 70% of shoppers have become more sensitive to price in the past year, according to a survey from Parago (parago.com) in Lewisville, Texas, which offer rewards-based incentive solutions. And the vendor who most benefits from all this showrooming? You might guess Amazon.com—and you are correct. The famous Web retailer has captured one-third of online shopping dollars, according to figures gathered by The Institute for Local Self-Reliance (ilsr.org). And Amazon shoppers love showrooming: 39% of them say they look at products in-store prior to buying online, according to a survey from Fluid Retail. Dealing with showrooming The above numbers suggest that showrooming is growing. Every retailer needs to deal with the phenomenon in a constructive way. Just how? You might be tempted to ban the practice. Some retailers have done just that: They ask showroomers to leave the store or install technology that blocks Wi-Fi signals. One retailer even posted a sign announcing a $5 "just looking" fee, refundable at purchase. Such steps, though, can create bad feelings among your regular customers. Some of them, after all, would like to do a little showrooming of their own—not to cheat you out of a sale but to make sure your prices are reasonable. They also might want to access online details about—and reviews of—items they are considering buying. "Don't make the assumption that someone with a smartphone is just looking for a lower price," says Dion. "Some are finding out what other people are saying about merchandise." Tip #1: Fine-Tune Your Price Reputation A better solution to the showrooming puzzle starts with the knowledge that pricing, as noted above, is the No. 1 driver B r i g ht e n U p t h e C o u nt e r Your Best Source for Beauty, Barber & Spa Supplies Call us today for a current catalog 800.645.5118 42 August 2013 | beautystorebusiness.com | www.burmax.com