Have you ever browsed a product online, read countless reviews, compared prices, and then walked into a store to make the final purchase? If yes, you’ve already experienced the ROPO effect—a powerful phenomenon transforming the retail industry.
In today’s retail landscape, where e-commerce and physical stores are no longer rivals but two sides of the same coin, understanding this behavior is the key to retail success. The hybrid journey of researching online and purchasing offline is not just a trend—it’s the new norm.
But how can retailers strike the perfect balance between digital convenience and in-store experiences? Let’s explore the ROPO effect, why it matters, and how Hexaware is driving innovation in this space.
What is the ROPO Effect?
ROPO, or Research Online, Purchase Offline, is a trend that’s been around for over a decade, and it’s still going strong. Simply put, ROPO refers to the growing consumer behavior of gathering information about a product online—through reviews, comparisons, or social media—but completing the transaction in a physical store. For example, you’re looking to buy a new smartphone. You spend hours reading reviews, comparing prices, and watching YouTube videos. But when it’s time to hit ‘Buy Now,’ you hesitate. Why? Because you want to hold it in your hand, test the camera, and compare it side by side with other models.
Why do customers do this? It’s simple: the internet offers convenience and quick access to information, but the tangible experience of seeing, touching, or testing a product in-store is irreplaceable.
The ROPO Journey: A Four-Step Adventure
Think of it as a four-stage journey:
Awareness: It starts with a need or a want—customers discover a product and begin researching through blogs, reviews, or social media to gather information.
Consideration: Here, they dig deeper—evaluate product details, compare prices, and make an informed decision about where to buy—online or offline.
Purchase: This is where the magic happens. In-store experiences like seeing, touching, and testing the product often seal the deal!
Service: Post-purchase services, loyalty programs, and excellent customer support ensure repeat business and positive word-of-mouth.
Why Does the ROPO Effect Matter for Retailers?
The ROPO effect is a game-changer for modern retail, blending the convenience of online research with the trust and assurance of in-store purchases. According to PwC’s 2023 Consumer Insights Survey, 54% of consumers rank search engines as their top source for pre-purchase information, followed by Amazon (35%) and retailers’ websites (33%). However, this doesn’t imply a preference for online purchases. In fact, 23% of US adults research products online but ultimately purchase them in-store, highlighting a crucial insight: online research drives offline sales.
Neglecting the ROPO effect could mean missed opportunities, as solely relying on e-commerce metrics undervalues the impact of online efforts on physical store performance. While the COVID-19 pandemic accelerated e-commerce adoption, it also reinforced the importance of in-store experiences. Customers missed the ability to see, touch, and feel products before buying—a need the ROPO effect seamlessly fulfils, bridging the digital and physical worlds.
Retailers who embrace this hybrid shopping behavior can:
- Boost in-store foot traffic driven by online campaigns.
- Build consumer trust and confidence by offering transparent, accurate information online.
- Enhance customer satisfaction and loyalty through seamless omnichannel strategies.
Industries Thriving with the ROPO Effect
Not all industries benefit equally from the ROPO effect. While digital products like music or books rely heavily on e-commerce, some categories demand a “see-it-to-believe-it” experience:
- Automotive
Cars are not just purchases—they’re aspirations. Customers spend weeks researching models, features, and prices online but visit dealerships to test drive and make informed decisions.
- Fashion and Apparel
When it comes to buying clothes, the ability to touch and try on items remains a key driver for in-store shopping. While online browsing helps customers discover styles and trends, many still visit physical stores to evaluate factors like fit, fabric, and comfort—attributes that 55% of shoppers consider essential. According to a recent Prosper Insights & Analytics survey, a majority of Gen Z consumers continue to favor physical stores, with 53% preferring in-person shopping for essentials such as apparel and accessories.
- Home Décor
AI and AR/VR tools allow customers to visualize furniture at home. But for big-ticket items like sofas or dining tables, they prefer to visit showrooms to ensure quality and comfort before purchasing.
- Beauty and Personal Care
Skincare and makeup are personal. Though online tutorials and reviews help but before committing to buying a new product, 92% of shoppers want to test and try products in-store to ensure they suit their specific needs.
- Electronics
From laptops to smartphones, electronics are high-involvement purchases. Customers may compare specifications and reviews online, but they prefer to test the product in-store before committing to a purchase.
How Can Retailers Measure the ROPO Effect?
Measuring the impact of the ROPO effect is essential—but it’s not always straightforward. Retailers must align online and offline data to fully understand customer behavior. Here’s how:
- Customer Surveys: Ask customers how they learned about the product during in-store checkout or online surveys.
- Tracking Online Behavior: Use analytics tools to monitor product page views, searches, and engagement metrics.
- In-Store Analytics: Leverage foot traffic counters and heatmaps to understand the effect of online campaigns on store visits.
- Coupon Codes and Promotions: Track online promotions redeemed in-store to identify purchase patterns.
- Advanced Tools: Use software solutions to integrate data from multiple sources and gain actionable insights into the ROPO effect.
How Hexaware Helps Retailers Leverage the ROPO Effect
At Hexaware, we understand that the future of retail lies in seamless omnichannel experiences. Our cutting-edge solutions empower retailers to bridge the gap between online research and offline sales.
Here’s how we can help:
- Gen AI-Powered Content Hub: Enhance product information and automate content creation to make the online research phase more engaging. Our AI-driven tools ensure accurate, high-quality content across channels.
- Personalization and Localization: Use analytics and algorithmic retailing to tailor experiences for every customer, ensuring their journey feels personal and relevant.
- Retail Analytics: Leverage audience modeling and segmentation to identify target customers and craft data-driven marketing strategies.
- Seamless Integration: From efficient supply chain management to robust order systems, we help retailers seamlessly transition from online interest to offline purchase.
- By combining AI, machine learning, and advanced analytics, Hexaware helps retailers unlock the full potential of the ROPO effect—driving customer satisfaction and business success.
Winning in the Age of ROPO
The ROPO effect is not a challenge—it’s an opportunity. By blending the best of online and offline worlds, retailers can create unforgettable shopping experiences that delight customers and build loyalty.
Now that you understand the power of the ROPO effect, it’s time to act. Whether you’re looking to optimize your content strategy, integrate analytics tools, or personalize customer experiences, Hexaware is your partner in transformation. Our innovative solutions are designed to help you stay ahead in this dynamic landscape.
Ready to elevate your retail strategy? Let us help you seamlessly connect your online and in-store experience. Contact us today to explore our solutions!