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New Study Analyzes Risk of Consumer Migration for Brick-and-Mortar Retailers

Big data analysis software company is announcing a new study entitled, “Showrooming and Consumer Migration”. The study, which its authors say provides key insights on how social media analytics can empower brick and mortar retailers to manage and capitalize on prevailing consumer expectations and motivations, examines online conversations related to showrooming and how and why consumers migrate to the competition.

The research uses real-life case studies involving retailers Best Buy and Amazon. It offers an analysis of social data, suggesting how retailers can fight back against showrooming, reducing customer migration to competitor stores—both B&Ms and e-tailers. Using Crimson Hexagon’s proprietary ForSight platform, the study analyzes over 1.5 million consumer social media posts surrounding Best Buy and Amazon throughout 2011, and provides retailers with actionable opportunities and insightful takeaways to help change consumer behavior. It investigates this industry-wide challenge from two equally important angles – consumer expectations of in-store shopping and competitor store appeal – to showcase the importance of social data analytics in providing retailers with opportunities to improve customer retention.

“The retail industry is driven by consumer preference and Crimson Hexagon’s study reveals social media analysis is vital to understanding these preferences in order to make informed, business-driving decisions,” said Crimson Hexagon VP of Marketing, Wayne St. Amand in a statement. “When retailers are in-touch with customers and informed by actionable social media insights, companies can accelerate responses to marketplace shifts like showrooming and discover nuances in customer expectations,” he added.

One of the most noteworthy findings of the study includes that social motivations are the largest driver of in-store shopping at Best Buy, with 46 percent of the conversation revealing customers’ prime expectation is a “playground” experience – not to be confused with sampling products on display. These consumers’ expectations are that it is “fun and helpful” to shop with peers at Best Buy.

In addition, the study found that:

• The risk of Amazon migration is highest during the holidays – in the weeks leading up to Black Friday the showrooming discussion increases almost six times.
• Significant customer frustration with lack of in-store inventory and poor online order fulfillment during the holidays reveals an opportunity for improvement and customer retention.
• Customer service at Best Buy is a minor shopping incentive, despite the availability of sales representatives.
• At 32 percent of the online conversation, the ability to achieve instant gratification (related to purchases) at Best Buy continues to appeal to shoppers.

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Edited by Brooke Neuman