Sunday, November 25, 2012

Best Buy's Answer to Showrooming

You can't seem to scan the business section of the paper without reading it.  The term showrooming has taken center stage as many businesses struggle to stay afloat while their customers use their showrooms to test out products which they will later buy online.  Best Buy is often used as an example of the quintessential victim of showrooming.  However, according to Ad Age, Best Buy is now utilizing a startup called edo Interactive to combat the problem.  The service allows targeted customers to receive deals via mobile, email, text, etc. that will automatically be validated at time of purchase through auto-enrollment at their bank or credit card company.  By targeting specific customers and validating the coupon automatically at time of in-store purchase, Best Buys seeks to drive foot traffic to its stores and incentivize customers to make a purchase rather than shopping around on the web.  Successful adoption of this technology seems dependent on its ability to microtarget the customer population willing to shop around versus the population willing to pay full price.

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