This post has been republished in its entirety from its original source, metromba.com.
David Bell, professor of marketing at the Wharton School of the University of Pennsylvania, recently presented research exploring the intersection between online and offline shopping during a talk at the University of Delaware’s Alfred Lerner College of Business and Economics.
Bell is a specialist in consumer behavior, specifically how this behavior plays out online.
“Now people have a more sophisticated and nuanced view that says: Online and offline are good for different things,” said Bell, addressing the complexities inherent in the modern consumer’s shopping experience. “Maybe they’re not substitutes…” he continued. “Maybe they’re complimentary in interesting ways.” He described the recent trend in retail sales of showrooms, which give customers the opportunity to try items in-person before placing an online delivery order. This allows buyers the tactile experience of the goods before purchasing them, in addition to giving brick and mortar businesses the advantage of foot traffic.
Bell’s research team presented the example of Warby Parker, the popular eyeglass company founded by Wharton MBAs that used the innovative approach of allowing online customers to try on items before deciding to purchase them. As a result of adding a showroom, the company observed a 9 percent increase in demand. Overall sales grew due to increased brand awareness. Though sales through the try-on delivery method decreased, Warby Parker’s overall efficiency increased due to the fact that the company sent 8 percent fewer pairs of sample glasses to customers.
Describing a phenomenon coined “the neighborhood effect,” Bell pointed out the importance of customer referrals in the online-offline model.
“If you can get your existing customers to bring in more customers, that’s going to be a really powerful lever of growth… By now having this additional channel, you’ve made one of your other channels more efficient,” Bell noted.
