MONTREAL, Sept. 25, 2012 /CNW Telbec/ - Showroomers exhibit more loyal behaviour than non-showroomers, making them an ideal target for retailers, according to a study from Aimia, a global leader in loyalty management. Retail showrooming behaviour, whereby consumers browse for items in-store before using their smart phones to find a lower price online, is propelled by Millennials (age 19-29) with at least two-thirds of showroomers coming from that generation. However, according to Aimia's "Through the Looking Glass" retail brief released today, showroomers are also active participants in loyalty and reward programs, thus making them an undervalued consumer audience for retailers.
"Showroomers are more likely to participate in loyalty programs, are more willing to trade personal details for rewards, and are more interested in mobile commerce," said Rick Ferguson, Vice President, Knowledge Development, Aimia. "Retailers should take advantage of these behaviours to transform showroomers to become loyal - and paying - customers."
Retailers have an opportunity to harness showroomers' greater willingness to engage in reward program memberships. Aimia's research shows the typical Canadian showroomer is male, owns at least two digital devices, is highly active in social media, and is excited by mobile commerce. The research also found Canadian showroomers are:
- 17% more likely than a non-showroomer to participate in a retail reward program membership
- 35% more likely to participate in a financial services reward program membership
- 88% more likely to participate in a travel reward program membership
- 10 times more likely than non-showroomers to respond to a location-based mobile offer
"The solution to embracing showrooming behaviour lies in retailers leveraging their shopping data to get consumer insights that will help shape their marketing strategies and drive in-store purchases," said Mr. Ferguson. "The tools of loyalty management provide unparalleled insight that can help retailers reinvent retail and build stronger relationships with consumers."
Retailers can influence showroomers by leveraging the tools of loyalty management including:
- Using hard benefits to reward desired behaviour - offer in-the-midst showroomers to join your rewards program with a rich bonus offer on their first purchase
- Linking soft benefits to upper-tier smart phone users - identify showroomers within the upper tier of your most valuable customers, and lavish them with soft benefits such as exclusive access, special benefits, experiential rewards, location-based offers and other privileges that resonate with your target audience
- Steal the online thunder - offer a showrooming app through your own loyalty program, allowing you to hold on to customer insights
- Deploying an aggressive partner strategy - work with and share opt-in data with partners and suppliers to combat showrooming together
Aimia's "Through the Looking Glass" retail brief provides a glimpse of the future of retail - one that embraces showroomers, leverages customer data to build loyalty, and uses the tools of recognition and reward to change behaviour. To download the complete retail brief and related infographic, please visit: http://www.aimia.com/English/Knowledge/Research-Center/default.aspx.
About The Retail Brief
Aimia's "Through the Looking Glass" retail brief was based on data previously collected for the Millennial Loyalty Survey conducted by Harris Interactive from 2,045 adults ages 19 and older in Canada between July 8 and July 19, 2011. Figures were weighted to be representative of the general population. Figures for the United Kingdom and United States markets are also available within the retail brief.
Aimia Inc. ("Aimia") is a global leader in loyalty management. Aimia's unique capabilities include proven expertise in delivering proprietary loyalty services, launching and managing coalition loyalty programs, creating value through loyalty analytics and driving innovation in the emerging digital and mobile spaces. Aimia owns and operates Aeroplan, Canada's premier coalition loyalty program and Nectar, the United Kingdom's largest coalition loyalty program. In addition, Aimia has majority equity positions in Air Miles Middle East and Nectar Italia as well as a minority position in Club Premier, Mexico's leading coalition loyalty program and Cardlytics, a US-based private company operating in merchant-funded transaction-driven marketing for electronic banking.
Aimia is a Canadian public company listed on the Toronto Stock Exchange (TSX: AIM) and has over 3,400 employees in more than 20 countries around the world. For more information about Aimia, please visit www.aimia.com.
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Image with caption: "Aimia's Millennial Loyalty Survey reveals a detailed look at the typical retail showroomer in Canada, the United Kingdom, and the United States. (CNW Group/AIMIA)". Image available at: http://photos.newswire.ca/images/download/20120925_C9271_PHOTO_EN_18453.jpg