ROPO Customers and Showrooming in Retail
“ROPO Consumer” and “Showrooming” are terms increasingly familiar in our daily lives in general and in the retail sector in particular. Perhaps some of you carry out these behaviors every day without realizing. But, what does they mean?
With this topic we want to begin the blog BrandPOSt where the retail sector and its trends are the protagonists.
Firstly, let’s clarify what’s the meaning of each concept. The ROPO consumers (ie Research Online Purchase Offline) are those who seek and compare the product they are interested on Internet, but prefer to make the final purchase in a physical point of sale. Instead the Showrooming, it is the opposite behavior, ie, go to the store to analyze the product physically but buy it on Internet after comparing different online stores. These behaviors are becoming more common, and therefore, coexistence between the off-line and on-line world is increasingly important.
Some numbers about ROPO behaviour:
# 34% of Internet users who do a search for an online end up buying Offline – ComScore
# The ROPO consumers spend about 33% more than those who do not do a preliminary online analysis – Fnac France
# Only 22% of consumers search and purchase products online- Fnac France
What these data reveal? The point of sale is still very important. The closing the deal offline remains in the lead, so not all online strategies should be aimed at achieving sales on the same channel, but also to consider how to mobilize those who prefer to search online to the physical store.
Specially in Spain we still prefer to see the product physically, and to talk about its features and resolve our concerns with the shop staff face to face. Just look at the data, only 43% of Spaniards buy online compared with 82% of Britons. These cultural differences must also be reflected in the way they devise and develop marketing strategies, as the Spanish market is still relying on the traditional way of closing the sale.
Some numbers about Showrooming:
# More than half of consumers (55%) admit to use a mobile device to learn about a product in the physical store – SecureNet study
# Of 100 coupons redeemed through the online store, another 51 were exchanged through the physical store – Google in his research of coupons and their relationship to consumer behavior
What is the main objective of Showrooming? Search information, customers they want to walk into a store, visualize a product, and scan bar codes to get more information, read reviews and compare prices and then finish the transaction as better fits for them, either in-store or Internet (source: Zenith Media).
However, these coupons were redeemed through the physical store, (consumers ROPO), despite being smaller than those redeemed in the online store, were disproportionately high spending assuming double offline to online. This supports the theory that ROPO consumers are more informed and open to increase spending once they are in the physical store (by PuroMarketing).
Therefore, we can conclude that when it comes to developing a strategy, online and offline channel should not be seen as separate worlds, but to look for mobility towards each other and feedback. We regard them as complementary rather than conflicting worlds.
In this sense Javier Ramirez, managing partner of Stratesys and retail expert, offers some keys to developing a successful strategy omnichannel. This article presents a possible solution for coexistence On and Off, the model “click and collect” and talks about their advantages (You can also find it on Professional Retail).
The model is to enable users to make their online purchases and collect them in a different point where they live. Increasingly e-commerce companies are implementing this solution for the convenience of its users, such as Tesco Volvo and even Amazon.
#It is expected that by the end of this year there are over 500,000 locations modeled “click and collect”, representing a growth of 20% over 2014 – according SurePort Deloitte Technology, Media & Telecomunications 2015 Predictions
Whats your behaviour? Are you a ROPO consumer or you preser Showrooming? Whats your opinión about omnichannel? We are happy to listen your comments!
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