Car Dealers! Have you heard of the term, “Showrooming?” It’s basically a customer that comes into your dealership to look at vehicles while looking online on their smartphone at your competitor’s pricing. Annoying, right? So how do you combat these “show-roomers?”

One thing you can do is create a loyalty program. For loyalty programs to have the desired effect, you must consider these anti-showrooming strategies:

1. Your prices have to be in the same ballpark as those of your competitors.
2. Customers make every purchasing decision independently. You can't expect them to take long-term loyalty rewards into account as part of the buying decision unless those customers are explicitly prompted to do so.
3. Buying decisions often take place in a matter of seconds, which means that any anti-showrooming strategy needs to be executed in near real time to have any effect.

According to Marketingprofs.com  there are five tactics that are worth exploring when showrooming is a problem:

1. Closing the price gap. When customers in a loyalty program receive discounts, the distance between the in-store price and the competitor's online price diminishes. Dealers must find a way to communicate the "effective price" (the current price minus the points-based discount) quickly and clearly: for example, "With your Valued Customer discount, the effective price of this [item]  is $14,999!" Customers can't be expected to do the math themselves.
2. Bonus points. When showrooming is a problem with specific items, retailers can offer increased discounts or points on those items to further mitigate the price difference.
3. Free accessories. Dealers can offer free items that complement the purchase, such as a a bobble head for the car or some cool sunglasses to wear with the customer’s new ride. Often, such items have a perceived value that's significantly higher than their actual dollar value.
4. Bounceback offers. If a customer's behavior indicates the potential for a lost sale, dealers can transmit a bounceback offer, either with a discount or some other incentive. To be effective, however, the bounceback needs to happen in near real-time and it must relate very specifically to the customer's interests (Ex. free window tinting with vehicle purchase).
5. Pushed coupons. With today's technology, retailers can offer instant discounts and special cross-sell or up-sell opportunities; they can even reward customers simply for entering the store. The value of so-called push technology is that it gives customers a reason to make an in-store purchase. For example, ActivEngage, thanks to an integration with Hooklogic, offers ActivShow, which brings customers into your showroom by offering great incentives like a $25 prepaid MasterCard or $25 incentives to popular stores like Starbucks® or Target®.

What do you think of these tactics? Do you have any strategies in combating showrooming?