Something t share with your local-direct client. Philip Jay LeNoble, Ph.D.

Commentary

How Retailers Can Keep Consumers Spending Online and In-Store

• by Emily Cross , Yesterday

Traditionally a slower season for retailers, this summer's sports-fueled extravaganza created by the Olympics and soon-to-begin Paralympic games has super-charged the retail landscape. A recent report from Visualsoft revealed that sales in the sports, outdoors and recreation sector has experienced a 49% surge in average revenue compared to 2023 and a 63% rise in average order numbers.

This suggests that the retailers who capitalise on this momentum have the chance to truly go for gold. The best way of doing this is to adapt to the ever-evolving consumer behaviors and technological advancements to find ways of building meaningful consumer relationships that encourage participation and engagement both in-store and online.

Amplify the ‘ROBO’ effect

One of the first things that retailers looking to promote spending online and in-store can do is to amplify the "ROBO" effect (research online, buy offline). Put simply, it’s the behavior of shoppers who research products online and then subsequently make their final purchase in-store. A recent survey by eMarketer has highlighted that nearly a quarter of shoppers engage in this behavior when making a store purchase.

Brands and retailers need to consider this purchase behavior and explore the potential and capabilities surrounding geo-targeting and incentivizing shoppers to visit nearby stores through promotions and exclusive in-store offers. This practice catalyses omnichannel initiatives by creating synergies between digital and physical environments.

Leverage AR/VR advancements

With synergy in mind, immersive experiences enabled through AR/VR create a true integration of online and offline shopping, allowing consumers to visualize products in real-world settings before making a purchase. According to a Harvard Business Review study, customers who use AR spent 20.7% more time on their app, viewed 1.28 times more products, and their likelihood of making a purchase was 19.8% higher during the session than those who did not use AR. It’s clear that the new frontier of retail media will be showcasing these interactive experiences to drive online and offline traffic -- redesigning the way we shop.

Harness first-party data

Retailers have been harnessing first-party data sourced from loyalty card usage to enhance omnichannel strategy and help close the measurement and attribution loop between online advertising and in-store sales. First-party data allows for the synchronization of marketing activations across multiple channels, which not only creates a seamless and completely unique consumer experience, but also embodies a tailored strategy based solely on the individual’s shopping behaviors.

Retailers and brands need to give customers a reason to visit stores and shop online all year around, and embracing technological advancements and shifts in consumer behavior is key to this. In keeping with the times, brands and retailers can maintain a competitive edge and cultivate deeper connections with their customers in a time where it matters most.

Adopting these rules can help retailers score in the summer and beyond and get match fit for the approaching golden quarter when there is even more to play for.