Use Digital Platforms to Drive In-Store Traffic, and Vice Versa

In the modern retail landscape, digital is no longer a threat to the in-store shopping experience. In fact, smart retailers have come to see e-commerce as a tool to boost in-store foot traffic. This represents a new phenomenon called ROPO (research online, purchase offline), where consumers start their shopping journeys online but complete them in-store.

This is a strategy used by 82 percent of consumers, according to Retail Customer Experience. Because of this, experts stress how important it is for retailers to have a strong presence in both physical and digital environments.

ROPO reverses the long-standing retail-killing phenomenon known as showrooming, when consumers visit brick-and-mortar stores to find or learn about products and then go online to buy them. ROPO, also called web-rooming, is the flip side of this process. But it’s not the only way that the different retail styles are coming together. There are many emerging scenarios for blending online and in-store shopping and purchase, says Deborah Goldring, an associate professor of marketing at Stetson University in Florida. One of the more popular retail styles is POPI (purchase online/pickup in-store).

Retailers operating physical stores “can offer a guided experience from online shopping and online purchase to a convenient pickup service either in-store or curbside,” Goldring says.

Digital marketing tactics can definitely enhance this experience, she says, and could include such things as “text messages, push notifications, emails, or QR codes, as well as easy instructions about where to park, where to drive through, or where to pick up in the store.”

Anna Brettle, co-founder and business development director at Stellar Global, a company that specializes in retail experiences and in-store demonstrations, agrees. “It’s crucial to have some sort of digital presence available that communicates offers to potential customers. Information such as product portfolio, promotions and product demonstrations, opening times, directions, and options for online reservations will enhance the customer journey and encourage customers to visit your physical store,” she says. “My top tip for utilizing the ROPO effect would be to make sure a brand or retailer has a strong online presence, whether that’s an online store or social media channels.”

During the COVID-19 pandemic, companies have primarily been focusing on digital practices, such as virtual product demonstrations and online masterclasses to replace the in-store experiences that were lost to social distancing.

Importantly, as retailers seek to interact with consumers during and after the pandemic, it’s critical to understand their needs, issues, and concerns and address them. It’s really all about thinking of the questions that consumers might have and taking steps to provide answers to those questions seamlessly, while simultaneously providing compelling reasons for consumers to take the difficult step of walking into a brick-and-mortar location. That is understandably a huge challenge. Yet there is evidence to suggest, even during the pandemic, as retailers in many states begin to open up for in-person interactions, some consumers are ready to venture out into the real world.

Consumers Crave Physical Interactions

Recent research by CodeBroker, a mobile marketing solutions provider, found that 65 percent of consumers are shopping more at Amazon and less at their favorite stores. At the same time, 75 percent say that mobile coupons and special offers could bring them back inside their favorite shopping destinations. In addition, 53 percent say that, as their favorite stores start to reopen, they would consider shopping at physical locations. Among those not planning to do so, 61 percent say that high-value mobile or digital coupons for in-store visits would prompt them to shop at physical locations.

“Downloadable mobile coupons and online loyalty programs are by far one of the best ways to push traffic from online to brick-and-mortars,” says Matt Tuffuor, cofounder of Toasted Life, a provider of dynamic events and experiences for companies. “These programs can help track purchasing patterns on a very granular level and help you track the success of concurrent campaigns.” And they confer other advantages, he adds: “Since these offers are distributed digitally, they can also be dynamically updated and personalized. A user’s purchasing behavior and geo info can even be leveraged, which helps drive effective results and a stronger ROI.”

Consumers are also drawn to physical locations to allow them to see and touch products before making purchase decisions. Stellar Global’s research found that 59 percent of consumers would not buy products costing more than about $325 without testing them and understanding how they work firsthand, Brettle says.

Once customers test the product, the odds are good that they will make a positive purchase decision, she says. “Our survey found that eight out of 10 will buy once they’ve tried a product firsthand.”

Goldring agrees that in-store interactions can boost sales for retailers.

“The good news is that shoppers who visit stores are there to buy, not browse,” she states. “And while they may be visiting less often due to COVID concerns, they are spending more per trip than prior to the epidemic.”

It’s important, though, to clearly and frequently communicate with consumers about what they should expect from the in-store experience, both in terms of product offerings and personal safety.

Modifications Required

Especially as the pandemic unfolds, ebbing and flowing across the country, retailers need to modify their business models, processes, and practices. “Because of COVID, physical stores now perform several functions,” including showrooms and distribution centers in addition to traditional retail outlets, Goldring says. “That means stores have had to quickly redesign their spaces with separate areas for in-store merchandise, picking up or returning purchases, and browsing online in the store for a ship-to-home experience.”

Retailers should also recognize and seek to assuage the safety concerns that many people have related to the pandemic. Both messaging around safety precautions (like requiring masks) and obvious visual affirmation that precautions are being taken (like requiring staff to wear masks, practice social distancing, and have hand sanitizer readily available in prominent locations around the store) can help to ease consumer concerns.

David Greenberg, senior vice president of marketing at Act-On Software, emphasizes how truly important this is: “Right now, in-store visits understandably give many consumers pause. Therefore, it’s important to build their trust and make them feel safe venturing in,” he says.

Greenberg recommends that retailers use their digital platforms to “address how you’re handling sanitization, social distancing, and other health precautions.” He also suggests “sending segmented communications about operating hours that will serve your customers who are at higher risk—think senior hours.”

In addition, Goldring says, retailers need to make sure that messaging is consistent across digital channels and physical locations. It’s important for retailers to “create a seamless omnichannel experience that merges bricks and clicks with e-commerce,” she says.

COVID-19 “has transformed the physical retail store from a transactional purpose to one which is transactional, experiential, and conversational,” she says.

Goldring suggests that retailers consider the following strategies for addressing each of these three types of interactions with customers:

Transactional. Retailers can improve CRM by using data analytics to build relevant segments and offer personalized recommendations. “Improvements in in-store technologies include real-time assistance, enhanced radio-frequency identification (RFID) applications, mobile point of service, mobile-friendly websites, and mobile apps,” Goldring says.
Experiential. Experiential retail is all about entertaining and providing novel in-store experiences, which has been disrupted by COVID-19, Goldring says. “Now shoppers seek clean, social-distanced stores with features like minimal interaction with sales associates, and services such as curbside pickup and robotic delivery. Technologies like Amazon’s walk-out shopping track and replenish out-of-stock merchandise and eliminate waits in line and checking out. There may be an increase in vending, kiosk, or pop-up shopping,” she says.
Conversational. Retailers must communicate how much they value their customers’ satisfaction, safety, and health. More personal customer information might be needed to build trust in the store’s safety policies and fluctuating inventory. Social media is a natural platform to advertise and build brand awareness as consumers increasingly use their mobile phones to browse and shop. Emails can nurture customer relationships.

Greenberg suggests in-store mini events as a way to attract customers to physical stores. But, he says, it’s important to communicate carefully about these options to ensure they’re relevant to the audiences being targeted. “Being aware of location is especially crucial here, as you don’t want to promote an event in California to someone who lives in Texas,” he cautions.

In addition, he says, it’s important to make sure events are relevant to customers’ needs. “Should you be inviting a loyal, long-term customer to an introductory Q&A? Definitely not. Paying attention to these types of details will prevent you from looking spammy and misinformed,” he says.

Scot Chrisman, CEO of the Media House, a digital marketing agency, emphasizes social media and in-store pickups for converting web traffic into foot traffic. Social media, he says, “is the most effective marketing channel.” He recommends that retailers use social media to let people know about seasonal store sales and include promo codes to tempt customers to make in-store purchases. In-store pickup can boost foot traffic, he says, and once customers are in the store, it’s highly likely that they’ll make additional purchases.

Strategies in Action

Jeff Moriarty is marketing manager at Moriarty’s Gem Art, a family-owned jewelry business in Indiana. Like so many other small retailers, Moriarty’s was forced to shut down due to the pandemic. It was closed for about three months, and upon reopening, the store needed to increase foot traffic. It implemented a two-step approach to do so.

“First, we added the ability for people to pick up their purchase in our store,” Moriarty says. “Most customers have told us they wanted to see the item in person or it was a gift, and their spouse was home all day. It has worked out great, and we count on the holiday season to be huge for us this year.”

Moriarty has also made use of heavy local advertising through Facebook, Instagram, and Google Adwords. “This has increased our local visitors to our website, which has resulted in one out of 10 orders being picked up,” he says.

Celeste Huffman is with Rogers & Hollands, a larger jeweler with 75 locations around the country. “We have always had an option to pick up in-store through our checkout. But with the reopening of the country in the last couple months, we have seen an influx of people actually choosing this option,” she says.

Based on observations, the store chain wanted to make the in-store pickup option more visible to potential customers; they’ve done this by adding the option to all product pages to improve visibility. “We implemented an easy-to-use module that allows customers to not only choose the store [where] they can pick up the product, but to see if inventory is available. We have seen tremendous growth in people coming to stores in the short amount of time this has been live on our website.”

Like Moriarty, Huffman is expecting this option to be very successful during the holidays.

What strategies are you using to drive traffic to your online and brick and mortar stores?

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