Do you also tremble before online competition?

Walks in through the door. For twenty minutes with interest he examines the shelves, feels the materials, tries on sneakers and walks up and down in front of the mirror. Your salesman makes an effort, explains every detail with a smile. When he helps him find the right size, the air already smells of a successfully completed deal.

Then the moment that changes everything. The customer calmly reaches into his pocket and pulls out his smartphone.

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Before your eyes he scans the barcode on the box, with two clicks orders the same article online for four euros less, sweetly smiles at you and says: »Thank you very much for the help, I will think about it a little more.«

Does this scene make your blood boil?

You are not the only one. In the modern store we call this »showrooming«, a phenomenon where your physical store becomes merely a free testing room for online giants. The feeling is unpleasant, but the cruel truth is simple. The internet does not push you out because it would be better in everything, but because you have unknowingly accepted its rules of the game.

Good news? The internet has a huge weak point that no delivery service can fix. A cold cardboard box cannot offer the heartbeat, adrenaline, community and genuine experience.

The Power of Exclusivity: When the internet simply remains empty-handed

The best merchants and global brands have started to fight “showrooming” at the roots. By simply completely excluding the internet!

Let’s look at the practice of some leading world brands of street fashion and prestigious sports footwear. Their most desired, strictly limited series (limited edition) never come to the online shelves. Not even for a second. If you want to buy the really special, cult model, the algorithm cannot deliver it to your home. The only way is to get up from the couch, personally appear in the store and buy the desired article at the register. Online price comparers and agents for automatic ordering are eliminated from the equation in a moment.

By offering certain articles exclusively within your four walls, you turn the psychology around. The physical store does not become only a place of viewing, but the only place where the desire can be satisfied at all.

Make the visit an event that the screen cannot replicate

The next step is gamification that emotionally binds the customer to the space.

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Imagine a sports store that places a basketball hoop in the middle of the store. But with a clear rule. The customer must first choose and buy a new pair of sports shoes, put them on immediately and test them on the court fresh from the box. Whoever scores ten baskets in a minute with new sneakers earns free tickets to the next home club match with his accuracy. Trying on shoes instantly turns into a performance test, fun for all present and a story that is talked about.

Now upgrade this concept with loyalty. If the customer is also registered as a member of your loyalty club, the reward is not just a regular seat in the stands. The club member is included in the draw for an exclusive VIP pass backstage where he can personally meet the home sports star after the match, chat with him, take a selfie and take home a signed jersey. What is the chance that someone would exchange such an experience for four euros discount from an anonymous online retailer? Practically zero.

In your sports store you don’t have space for a hoop? Then you can replace this prop with a mat and organize a long jump challenge. In short, if you are someone who does not just lament the cruel fate and is prepared to look outside the established frameworks, you have many options available. Primarily because the vast majority of other retailers still think in terms of solutions that worked before the rise of the internet and rant about the changed market conditions.

The same psychological effect has the inclusion of community and charity. A glass container with water in a pet store or an improvised aquarium with a submerged target at the bottom into which the customer throws a coin. If he hits directly in the center of the target, he receives a gift card, if he misses the target by a hair he gets a discount coupon. In any case he is richer for an interesting experience and is satisfied since he knows that the collected money goes to the local dog shelter.

Don’t fight against technology – harness it to your advantage

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All this of course does not mean that you must renounce digital tools and pretend that the internet does not exist. Quite the opposite. The real winning formula is to smartly harness digital tools in the service of your physical store. The list of possibilities is very long - from smart mobile notifications that alert passers-by nearby to an exclusive promotion, to digital systems that reward the visit at the location itself. Of course all this in conjunction with excellent knowledge of customers. Only in this way can you offer an individually tailored offer to each person.

For reliable dominance over online competition you must necessarily direct your business into three key directions:

1. Never compete (only) with price

The price war with the internet is a battle lost in advance – it is a race to the bottom, where in the end only those with the deepest pockets and zero margin win. When you compete on price you attract customers without any loyalty who will go elsewhere at the first cent of difference. Your strength is not in the lowest price but in the added value that the internet cannot pack into a package.

2. Put the unique customer experience in the foreground

People do not buy only raw products; we buy feelings, status, fun, experience, confirmation and personal treatment. A store that offers experience, interaction, expert guidance and a touch of adrenaline will always sweep away the competitor that offers only cold clicking through the web browser.

3. Equip yourself with the right tools and really use them

Unfortunately today many retailers still look at modern digital tools extremely superficially. A typical example are gift cards. Many still see them only as a simple plastic replacement for money. In reality advanced gift cards enable automated repeat purchases, targeted marketing incentives for visits on less visited days and tracking of customer habits. The same applies to loyalty programs – passive collection of stamps on a cardboard is much better than nothing but brings many shortcomings. Modern programs build community, segment the best customers and open doors to unforgettable experiences such as meeting your sports idol.

Therefore it is always smart to thoroughly inquire about all the advanced possibilities of individual tools before any decision to upgrade your systems. Technology in the hands of a thoughtful merchant does not drive people to the internet but reliably brings them back through your doors.

Boštjan Belčič

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