I am shopping your competitors... while standing in your store

Once upon a time, it was easy to become frustrated by shoppers who would visit your store to learn the “tangible attributes” of a product (the first-hand look, feel, and comfort of a product), and then go home, go online, and find the lowest price on that item. (Thus, the consumer could benefit from your investment in inventory, display and other merchandising costs… but not necessarily reward you with the purchase.)

Something has changed with the way some consumers are conducting these “recon” shopping trips. They’re shopping your competitors before they even leave your dealership, office or store.

Even if you aren’t a car dealer, see this story from yesterday’s Media Post Marketing Daily, and ask how the behavior explained in that article could impact a company like yours. Because Cars.com isn’t the only “App” that helps consumers do their “virtual comparison shopping.” Now, consumers can download tools to turn their smart phones into barcode scanners… and compare your prices to the store(s) across town without leaving your location.

Implication: Surfing your competitor’s website was only the beginning. Now, people can do a price-check on aisle nine… while standing in aisle four of a competitive store.

That means it’s a good time to compete on the basis of more than just price.

Think in terms of comfort, quality, convenience, or special services that add pleasure to the purchase experience. How about customer service or follow-up after the sale? How about experience, expertise, or factory-trained technicians? (Brainstorm a list of benefits your company offers which might be less tangible but no less important than “low price.”)

We repeat: Absent a unique selling proposition, price becomes the default influence over virtually every purchase decision. If you can beat all comers on price, that’s no problem. But if you cannot be cheaper, you had better be better.

A company which knows their unique value proposition—and can communicate it well to the consumer—makes itself difficult to compare.

Mike Anderson