The New York Times and Forbes have both recently approached an issue every retailer is struggling with: “showrooming”.
“Showrooming” is the phenomenon of customers browsing and researching the retailer’s products, only to purchase it elsewhere for a lower price. Many big retailers such as Wal-Mart, Target and Best Buy are price-matching and requiring unique SKUs to try to combat this problem. But how can retailers combat “showrooming” and stay competitive at full price?
Brands and retailers must strategically work together to offer custom solutions to meet their shoppers’ needs. Forrester revealed that 35 percent of shoppers are interested in custom products. Making customization a core partnership strategy is key for growth and focuses on the customer experience. Nike launched a customization program that resulted in over $100 million in revenue.
Customization creates a partnership between customers and brands. Providing a unique experience for customers will cement their loyalty and they will not have any need to look to the competition. They will stay loyal to get products they cannot get anywhere else. Only through a strong strategic partnership between brands and retailers can “showrooming” be taken out of the equation.