ROPO effect means inform online, buy offline
Retail and consumer behavior have changed dramatically since the invention of the internet. More and more people have switched to buying online. Brick-and-mortar retail was threatened with extinction. But this fear was unfounded, as the ROPO phenomenon shows that offline shopping is still in demand.
Contents:
- What is the ROPO effect?
- Reasons for the ROPO effect
- What impact does the ROPO effect have on retail?
- How bricks-and-mortar retailers can use the ROPO effect
- What the ROPO effect means for online retail
- Retail as a Service: New services for online retailers
- Leverage the ROPO effect as an online retailer with Showme stores
What exactly is the ROPO effect?
ROPO stands for “Research Online, Purchase Offline” and describes the behavior of customers who research online before buying offline in a brick-and-mortar store. It is also often referred to as “webrooming”. This phenomenon is becoming increasingly important, as around 64% of Germans research products online before buying them in a store.
The opposite of webrooming is showrooming, where shoppers go into a store to look at the products but later buy them online. In this case, we also speak of reverse ROPO.
Reasons for the ROPO effect
One of the main causes of the ROPO effect is the increase in online options that customers can use to search for products. More and more people are using smartphones and similar devices to find out about products online. As the amount of information available has increased, consumers’ need for information has also grown. To save time and, above all, money, customers are searching online for the best product at the lowest price. On average, consumers can save €70 by researching online. The numerous reviews available also play a major role: 98% at least skim through them. Often the smartphone is even pulled out in the store to research online, read reviews and compare prices.
What impact does the ROPO effect have on retail?
The ROPO effect has a significant impact on the retail sector. On the one hand, it poses a challenge for brick-and-mortar retailers, as it requires a strong online presence to attract customers. On the other hand, online retailers can take advantage of the ROPO effect and present their range in a showroom , making their products accessible to customers offline as well. This is because many customers want to test and experience the product on site.
These are the reasons for shopping in stationary retail:
- 56% want to experience the product live, touch and try it out and test the feel, look and fit before buying.
- 34% intend to take the product with them directly.
- 25% of customers would like to save the sometimes high shipping costs.
- 14% are not in the mood for a complicated exchange at the online retailer.
All these needs are served by brick-and-mortar retailers, thus strengthening the ROPO effect.
How bricks-and-mortar retailers can use the ROPO effect
Brick-and-mortar retailers threatened by online retail can use the ROPO effect to their advantage and lure customers who have previously gathered information online into their own stores. To achieve this, the store must
- have a strong online presence
- Ensure a good ranking of the website through SEO measures
- Building up social media marketing
What the ROPO effect means for online retail
The fact that online-only retailers cannot present their products to customers live means that customers can only touch and test these products after making a purchase. To ensure that online retailers do not lose their customers to brick-and-mortar retailers, they should respond to customer needs and
- ensure meaningful ratings on the website
- Write good product descriptions
- Provide video and image material
- Offer voucher and discount campaigns
- enable the dispatch of samples
- guarantee an uncomplicated exchange
Retail as a Service: New services for online retailers
However, online retailers can go one step further and offer potential customers a live shopping experience without having to open their own store. The concept is called Retail as a Service: online retailers rent a showroom from a provider that is suitably equipped for their product as a kind of pop-up store. They can display their goods there and customers have the opportunity to experience, test, try out and touch them live. If the customer decides to make a purchase, they are directed to the online store in the spirit of showrooming (look offline, buy online), where they can order from the online retailer as usual.
Leverage the ROPO effect as an online retailer with Showme Stores
With Showme Stores, online retailers can rent a showroom, i.e. their own exhibition space of 20m2 or more, and present their home and living products here. This gives customers the opportunity to experience and try out the products offline and online retailers can reach a whole new target group. At the same time, customers are advised by expert staff and guided through the purchasing process. Showme stores can be found at various attractive locations in Germany:
- Dreieich
- Bad Säckingen (opening fall 2023)
- Bielefeld (opening 2023)
This enables online retailers to reach customers in East Westphalia-Lippe, the Frankfurt Rhine/Main metropolitan region and Switzerland.
