Shopkick Insights Blog

Of all the challenges currently facing the retail industry, declining foot traffic seemed to be the first that emerged. Therefore, it’s one of the first challenges brands seek to overcome. Increased foot traffic leads to more repeat visits, higher customer satisfaction rates, and, most importantly, increased sales.

The way gurus talk about location-based marketing, it sounds like the panacea for the retail industry as we know it. And it might be⁠—with geofencing, beacons, proximity marketing apps, and augmented location data, we have the potential to target customers more specifically than ever before, in the very locations where they’re likely to be most receptive. Location-based marketing seems like selling umbrellas in Times Square during a rainstorm.

Some people say the retail industry is in crisis. They point to stores closing, sales dropping, and customers who are trading in their loyalty for the convenience of an online shopping cart. Others see things differently. Retailers are facing significant challenges—but these challenges are better seen as catalysts for unprecedented innovation.

Despite rumors which abounded since the creation of e-commerce, brick-and-mortar retail isn’t going anywhere. Approximately 75% to 80% of purchases made today are made at physical retail locations. There are a number of reasons that consumers choose to shop in the physical space, but one that retailers need to be aware of is the fun component.

An online retail marketing strategy requires the management of a lot of moving parts. Retailers must connect with consumers online and gain their attention with organic and paid search strategies.