How to increase conversion in retail stores

From shoppers to buyers: How to increase conversion in retail stores

Increasing the conversion rate in retail is often a significant challenge for CPG brands who have little control over the physical layout of stores. These brands need to be able to compete with well-known brands, as well as cheaper white label products and this is a challenge in the crowded shopping aisle. Even when shelf space is not optimal, there are ways to connect with consumers using technology.

Many opportunities in mobile marketing help brands connect with shoppers as they make purchase decisions. Leveraging scarcity, social proof, and priming can help guide consumers to products and get them to engage with them. Such processes increase the potential for purchase. The answer to the question “How to increase conversion in retail stores?” can be found by leveraging mobile solutions to drive in-store interaction.

Leverage Scarcity Through Mobile Rewards Programs

When a consumer is in the shopping aisle, brands have a prime opportunity to impact their purchase decisions. Since their time in the store is limited, short-term deals offer an excellent opportunity to drive sales. Mobile rewards programs, like Shopkick, help to incentivize consumers to engage with products and primes them for sales.

With Shopkick, the consumer enters a location and receives a notification on their phone, alerting them of potential kicks (rewards points) that are available for interacting with specific products. As they can only gather these points by scanning the product UPCs, this drives them to seek out the items in the shopping aisle. Handling the product builds brand awareness and creates a sense of ownership which primes the consumer to make a purchase. The opportunity to receive heightened incentives for scanning their receipts establishes ongoing brand affinity.

As the consumer receives the notice when they’re already in the store, their fear of missing out on the deal makes them more likely to make a purchase. Such programs delivered via mobile apps are ideal for providing time-sensitive deals to shoppers.

Capitalize on Social Proof Through Online Reviews

learning How to increase conversion in retail storesDigital interactions influence $0.56 for every dollar a consumer spends across industries, according to the most recent available data. One big driver of this is the wide availability of online reviews for just about every product. Positive online reviews trigger social proof, in that consumers use the majority opinion to guide their own. Someone who sees a five-star product rating, for example, is far more likely to make the purchase as they see a large number of individuals view the product favorably.

This matters in the shopping aisle as the consumer can quickly look up a product on their smartphone and comparison shop with ease. Brands must consider several critical factors when auditing their online reviews, such as:

  • Overall rating: The first thing consumers will note when seeking out reviews is the overall rating. Having a poor overall rating can impact both visibility in digital spaces, as well as overall customer perception.
  • Number of reviews: High overall ratings are more credible when there is a significant number of opinions behind them. Consumers are more likely to trust a score established over several hundred listings, as it shows that most users have a similar experience.  
  • Most popular positive opinions: In some cases, consumers can vote on the views they find most helpful on review sites. The highest voted opinions will be the ones which are most visible. Reviews which are detailed, rather than generically positive will garner the best response.
  • Most popular critical opinions: Critical opinions can also help a product online, as they give positive reviews credibility. When a product has nothing but positive reviews, consumers may believe the brand themselves posted these reviews or solicited them from individuals who may be biased.  

Leveraging these reviews as social proof can help push a consumer to trust a brand and make a purchase. Brands should keep in mind that online reputation management is not something which only drives e-commerce sales; it must also be leveraged for enhancing the in-store experience.

How to Increase Conversion in Retail Stores With Mobile Displays

Brands may not have as many options for in-store displays due to finite shelf space. However, mobile phones offer infinite possibilities in providing interactive in-store engagement. Brands can provide consumers with engaging branded content via mobile apps or extend digital greetings which play on entry. They can incentivize product interactions and create positive, personalized shopping experiences based on location.

The answer to the question “How to increase conversion in retail stores?” can be found by leveraging mobile solutions to drive in-store interaction.

In creating these shopping experiences, brands can partner with third parties or develop in-house programs. Using third parties provides a few benefits, including access to an existing user base along with rapid innovation based on customer demand. In-house programs, on the other hand, allow brands complete control over their message. Often, a combination of internal and third-party apps can help brands reach the broadest market possible.

When looking at how to increase conversion in retail stores, brands must consider mobile apps as the new in-store display. As more consumers turn to their smartphones to help them shop, brands can guide them through these flexible programs. Both third-party and proprietary apps can enhance the customer shopping experience, which increases sales potential.  

Shopkick assists our partners in gaining consumer attention in the shopping aisle by leveraging our intuitive app. To see how our app can improve your in-store marketing results, contact us.

Image courtesy of Stokkete



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Dima Volovik

EVP of Product and Engineering

Dima Volovik is the EVP of Product and Engineering at Trax Retail — Shopkick.

Dima Volovik is the accomplished product and engineering leader who led teams to deliver innovative and commercially successful e-commerce products, marketplaces, and enterprise solutions for Amazon, Comcast, Fandango, and Universal Music. Before joining Trax, Dima was the Director at Amazon, where he led product development and Engineering for Amazon Appstore and Amazon Prime Video, CTO at Fandango, and Paciolan, head of technology at Golf Channel/Golf Now, and Global VP of Direct to Consumer Technology at Universal Music Group. Dima’s expertise includes developing consumer products, marketplaces, and enterprise solutions.

Dima grew up in Baku, Azerbaijan, where he received his MS in Electrical Engineering from Azerbaijan Oil Academy, and he currently resides in Los Angeles, California, with his family.