At times marketing seems like it is only getting harder. Omni-channel distribution means more ways to communicate and sell to the customer. There is just some much to worry about.
Showrooming
New technology often drives new ways to communicate with and reach consumers. It also means many more opportunities. It also means many more challenges. This has led to a concern about showrooming. This describes when a channel is used primarily to show off the products. The channel showing the goods does not make the sale. When the sale is eventually made by the same company this is a notable challenge. Most obviously for attribution. Which channel do you attribute the sale to?
“So, if some channels increasingly get used as showrooms while purchases get made elsewhere, the showrooms need to be rewarded”
Ailawadi and Farris, 2017, page 121
Managing Omni-Channel Distribution
These authors look at how one can effectively manage such a complex omni-channel environment.
One might note that showrooming is even more of a bone of contention when a different company gets the sale. If you pop into a local store to look at a product but buy off Amazon you can see why the local store wouldn’t be that happy. If you are worried take at least some comfort from the fact that webrooming also exists. Pre-sale research online followed by an instore purchase. In an ideal world these net each other off but that would be a little too neat to be true.
Kusum Ailawadi and Paul Farris outline some ways to measure distribution in an omni-channel world. The authors supply a host of metrics that can be used. They also outline research directions. There is a lot to do. For example, they note that “what is needed is information on the different intermediaries that a consumer visits on the path to purchase so that one can determine what functions are being performed along the path to purchase by each one.” (Ailawadi and Farris, 2017, page 133).
The information on this isn’t really available but better technology may be getting us nearer. (Of course, there are privacy considerations here but that is another story).
For more on channels see here.
Read: Kusum L. Ailawadi and Paul W. Farris. “Managing multi-and omni-channel distribution: metrics and research directions.” Journal of retailing 93, no. 1 (2017): 120-135.