Showrooming Preferences for Mobile Consumers

The consumers that massively shifted to mobile have delivered them to be a rich and personalized experience to any types of smartphones. It is shifting to mobile needs resulted in the commerce and financial institutions to apply the “mobile-first” strategy. Traditional retails are disrupted by the existence of mobile devices that leveraged by the users and performing “showrooming”. It is the condition when consumers search or look directly at the stores, but ordering those items online.

There are several reasons why consumers prefer to conduct the transactions in the form of showrooming based on Comscore survey. The first reason proved for 72% explains that price was better online. When retailers provide the products online, they do not need to pay for the building cost, include operational costs in terms of maintenance, electricity, water, and salary expense. Hence, they could charge at a lower price. The second reason proved for 40% that the consumers want to buy online, but wanted to see that items in person first. The stores are out of stock for the items proved for 24% comes for the third reason, while the remaining reasons are the consumers was not convenient to buy items in person at that time (16%), prefer to receive the items by shipping to their home address (14%), and 2% for other reasons.

Based on the survey above, it is highly demanded to the retailers to provide online service in order to keep up with the mobile presence or otherwise they might be left behind. Providing online transactions should also consider the ability to scan the items that they are attracted to and facilitate the consumers with “one-click transaction” for its payment and items shipping. Besides utilizing the mobile to research the products, the consumers usually compare the price of a competitor, buying goods from online sellers, rating’s review of the online store, and to know their balance and budget. Transactions through mobile have literally disrupted the paradigm of traditional retail shopping.

*source: Dan Schatt, Virtual Banking – A Guide to Innovation and Partnering (Book)

Rewrite and enriched by Shinta Amalina. H. Havidz