Forty-five percent of U.S. consumers will leave a physical store and complete a purchase only for a discount as low as 2.5%, and 60% will leave and purchase a product if they can save 5%, finds GroupM Next study

ST. LOUIS, Missouri , August 21, 2012 (press release) – Forty-five percent of customers shopping in-store at brick and mortar locations will walk out and complete their purchase online for a discount as low as 2.5%, new research from GroupM Next examining the showrooming trend reveals. This number jumps to 60% of shoppers who will leave and purchase a product online for a savings of 5%. When discovering an online discount of 20%, a small percentage of shoppers, 13%, stay and complete their purchase in-store.

“Showrooming is a label for a massive consumer behavior shift brought about by the ease of access to information on a mobile device. Brands that sit on either side, be it as the physical store or the online merchant, have multiple opportunities with this consumer change.”

Showrooming defines a significant shift in consumer behavior impacting the health of both brick and mortar stores and e-commerce retailers. It is the new habit of consumers conducting price comparisons on a mobile device while in-store, leaving the store and completing their purchase online.

The study, “Showrooming & The Price Of Keeping Buyers In-Store,” was conducted to take close look at the influencing factors of showrooming and to identify the tipping point when the difference between an in-store and online price is large enough to lure shoppers out of stores. With such insights into this new trend – one that is likely here to stay, brands can better target this segment of shoppers and capture their business online – or at the checkout counter.

“Consumers have shifted their path to purchase to include the store as a step, but not necessarily the final step; and this will likely continue to increase over time. Brands need to think about how showrooming can be used to their advantage to navigate would-be buyers to a checkout location, be it in-store or online,” said GroupM Next CEO Chris Copeland. “Showrooming is a label for a massive consumer behavior shift brought about by the ease of access to information on a mobile device. Brands that sit on either side, be it as the physical store or the online merchant, have multiple opportunities with this consumer change.”

For this study, 1,000 shoppers in the United States were surveyed and presented with multiple hypothetical showrooming scenarios for 10 products at varying price points spanning multiple retail categories. Data highlights, as reported in the whitepaper on the research, include:

  • 44% of consumers use a mobile device to influence their purchase decision when shopping in-store
  • If the price difference in-store vs. online is more than $5.00, most customers will leave
  • The average showroomer profile includes females who are younger in age and make online purchases frequently. Alternately, the profile of the shopper who can be most swayed to stay and complete a purchase in-store is older male, 55% of whom buy online 1x per month
  • Customers who interact with an associate are 12.5% more likely to purchase in-store

“Finding only a small price difference elsewhere using a mobile device is enough to entice a shopper to leave the store and buy online. By employing strategies to reach this massive audience segment, brands can significantly bolster their sales at the register or take advantage of their showrooming and effectively get the sale via a branded app or online property,” noted GroupM Next Director of Research Patrick Monteleone, Ph.D. “However, nearly 10% of purchasers we surveyed chose to complete their purchase in-store, no matter the price discount offered. They key for marketers is to identify the next 10%; the group of customers that are sensitive to price, but can be swayed to stay in-store.”

About GroupM Next

GroupM Next is the forward-looking, innovation unit of GroupM, the world’s largest global media investment management group that serves as the parent company to WPP media agencies including Maxus, MEC, MediaCom and Mindshare, as well as Catalyst Online and Xaxis. Together with GroupM agencies, GroupM Next focuses on the curation and application of insight-focused solutions across the online, social, mobile and addressable channels. Through thought, technology, research and education, GroupM Next delivers data-driven, actionable insights and a clear path to action so that GroupM agencies and their clients harness the right opportunities made possible in the digital technology and new media industry environments with speed and relevance. Access our work and discover our perspective at www.groupmnext.com.

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