Retail
9 reasons retail marketers should invest in in-store marketing in 2024
Choosing where to focus your attention in any organisation is a challenge. But, when it comes to your retail marketing, there’s always a pull to concentrate on what’s happening online.
With digital channels always capturing the headlines, it’s easy to overlook the power and potential of your store estate and all of the physical retail space you have at your fingertips for in-store marketing – and retail media – opportunities. From fostering meaningful customer experiences to driving increased foot traffic and sales conversions, enhancing your in-store marketing efforts can offer significant returns on investment.
Not convinced? This article is just for you.
E-commerce continues to be a challenge when it comes to profitability, with high fulfilment costs and continued consumer expectations of free delivery and returns. Many expenses are incurred in the warehousing and labor to store, pick and pack items. Meanwhile, the delivery fees passed onto customers often fall short of covering overheads.
Not only do in-store purchases eliminate the costs associated with picking, packing and shipping to customers but in-store returns encourage shoppers to swap items, rather than simply requesting their money back. And, they are more likely to pick up additional purchases once they’re in-store. Another way of minimising costs is to encourage consumers to buy online and pick up in store. This offers yet another opportunity to entice shoppers with promotions and encourage impulse buys during their visit.
Investing in your in-store marketing isn’t just about improving the in-store experience for customers and driving more sales. With the right location profiling technology, it allows you to open up new, or supercharge existing, opportunities when it comes to Retail Media: using your physical store estate to sell advertising space to brands and businesses. Coined the final uncharted territory for most retailers, it is possibly where some of the greatest riches still lie.
Stores enable brands to reach audiences that they don’t have access to through their digital channels. And, with in-store shoppers are more likely to notice a brand’s advert, being featured and prominent in stores is high on their priority list.
To manage your in-store retail media effectively, you’ll need the right technology, and campaign execution and compliance will be more important than ever. But, its potential is too vast to ignore.
Research has shown that shoppers tend to spend more in-store. In fact, one study revealed that they are twice as likely to do so compared to online shopping. Studies have also found that the majority of shoppers will return to stores they visit and will actually spend more each time, providing they’re happy with the in-store experience.
Shoppers also have a preference for making more expensive and luxury purchases in person. Likely because they feel that there is less risk making an in-store purchase. They are able to use all their senses while shopping and they know they have a physical location to go back to if they are not satisfied with their purchase.
A survey by Retail Dive found that 64% of consumers prefer shopping in-store because they like to see, touch, and try products before making a purchase. Great execution of in-store displays, coupled with excellent customer service, can further help customers feel secure and confident buying things. And, just as important, enjoy the process.
It’s estimated that impulsive purchases make up between 40% and 80% of retail sales. Studies have found that as many as 8 in 10 people admit to making impulse buys in bricks and mortar stores, and it’s much more likely happen in-person than online.
What does this mean? Shoppers in stores are on the look out to buy things that they didn’t plan to. They are ready to be convinced and enticed by the in-store environment. Your in-store experience and marketing cannot miss out on that.
If you want to boost spontaneous purchases in your stores, check out our blog on exactly that: https://colateral.io/en/blog/impulse-buying-using-in-store-marketing-to-boost-spontaneous-purchases/
Return rates are estimated to be three times higher for e-commerce than in-store, with the NRF finding that one in five online sales are sent back. While in areas such as fashion, online returns can be almost 20 times higher than those bought in store.
Not only do online returns come with lots of expense, when there is no value in restocking a returned item because it is out-of-season, it often ends up in landfill, making it terrible for the environment.
There’s no better place for consumers to connect with a brand than visiting a physical store location or attending an in-store experience or event. Your in-store marketing guides shoppers to find the products they want, and discover new ones, while also building the reputation of your brand.
Get the in-store experience right, and it can help improve customer trust and loyalty and increase the perceived value of your products. With research finding nearly three quarters of online shoppers visit a store before buying online, your stores are also a valuable tool in pushing online sales over the line.
Known as the halo effect, more online purchases actually take place within the area surrounding a physical store. Focus on making your in-store marketing and experience inspiring and persuasive, and you’ll likely be able to increase both in-store and online sales.
Whether it comes in the form of reading printed display materials about a product, or speaking to a knowledgeable store associate, customers like getting information and advice in-person. This is particularly true when it comes to larger, more expensive purchases.
Improving your marketing communications with stores is a key component in making sure your store teams are up-to-date on your available products and promotions.
It’s a marketing method as old as time, but displaying in-store marketing works. And, the pandemic has actually increased the potential of in-store signage with research finding that shoppers are more aware of it than ever before.
A recent survey by Inmar found that 69% of shoppers recall seeing in-store product advertisements. More importantly, it found that the shoppers who recalled seeing an in-store advertisement from a brand or retailer, went on to browse the featured product (69%), and actually purchase the product (61%).
While digital marketing remains crucial, the unique power of the store estate and your in-store marketing is increasingly apparent. Your physical retail spaces offer a unique opportunity to create immersive experiences that resonate with your consumers on a personal level, driving brand loyalty and ultimately setting your business apart from your competitors.
Want to see how Colateral simplifies in-store marketing processes while supercharging your return on investment?
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