Consumers are Searching and Shopping Closer to Home. Are You Reaching Them?
July 17, 2015
Data in TimeTrade’s 2015 State of Retail Report shows that while mobile shopping is growing trend, shopping in a store is even bigger. The report, comprised of a survey of 1,000 consumers, found that more than half (65 percent) of consumers said if an item they want is available online or in a nearby store, they prefer to shop in the store. This is big news for national retailers. In this week’s roundup the Balihoo marketing team is sharing more data from around the web pointing to the importance of a localized approach to marketing.
Amanda Cash-Crowley – Demand Generation Marketing Manager
Retailers may remember a oft-used buzzword that gave them the chills a few years back – “Showrooming”. It induced panic because many writers and business experts predicted the dramatic rise of folks going into stores to test out and try on merchandise, only to leave and purchase it online at home from another retailer. Well, it turns out, that perceived threat never quite materialized, as only 7% of purchases made in the U.S. are made online. Guess what did come to fruition? The exact opposite!
A survey by PwC, along with many other research studies before it, have pointed to a much more common practice that has gotten retailers in knots – “Webrooming” – which consists of consumers doing research and price comparisons online and then finding a local store to complete the purchase. It even has its own acronym – ROPO, or Research Online, Purchase Offline.
With physical stores hardly becoming obsolete, retailers are finding upsell strategies more difficult to execute, since the consumer is more apt to come into the store on a mission for a single item. Plus, this trend means that consumers are sometimes more product-educated than their in-store staff. For information on the PwC study on consumer buying behavior and how retailers are reacting, read the full article.
Lana Odintsova – Senior Managing Editor
Think with Google: I-Want-to-Go Moments: From Search to Store
This Google article addresses what most marketers know to be true: today’s customer journey looks markedly different than it did five years ago. However, it dives deeper into just how different today’s shoppers are and how they are redefining the way national brands need to reach and connect with them. The author notes that “instead of a few moments of truth” today’s consumers has a series of “micro-moments.” Consider the fact that search terms like “near me,” “closest,” and “nearby” are increasingly common across the billions of queries on Google every month. In fact, Google search interest in “near me” has increased 34X since 2011. The data gets even juicier for national retailers. Google’s information also shows that 50% of consumers who conduct a local search on their smartphone visit a store within a day, and 18% of those searches lead to a purchase within a day.
Marcie Ellison – Marketing Manager
Today’s consumer is a technology device busy-body. Jumping from screen to screen, flipping between smartphones and laptops, bouncing from smart TVs to tablets, viewing short and long-clipped shows on-demand; consumers are accessing and absorbing product information, news, and entertainment at a higher velocity than ever before.
This incessant and fluid media consumption habit, has fashioned a “liquid consumer” who isn’t grounded on one medium, homepage, or location. This “liquid consumer” has transformed the goal for national brands and publishers from trying to connect with consumers in one centralized “home” to reaching consumers anywhere, anytime, anyplace, and in anyone’s domain.
This AdWeek article highlights a new IAB report which spotlights the “liquid consumer” trend. The insights and learnings of 36 senior executives from some of the nation’s leading creative, digital and media agencies are highlight in two new white papers: “Madison Avenue Meets Silicon Valley and Silicon Alley: Building Collaboration Between Creativity and Technology” and “Digital Advertising Audiences: An Industry Perspective on Creating and Building Audiences in a ‘Liquid Audience’ Paradigm.”
To learn more about this trend in retail marketing and how your brand can be prepared to translate your national message(s)/campaign(s) to local markets, download Balihoo’s free feature article – National Retailers: It’s Imperative to be Found at the Local Level.