benefits of mobile marketing in retail

Top 6 benefits of mobile marketing in retail: Everything you need to know for 2021

Top 6 benefits of mobile marketing in retail: Everything you need to know for 2021

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There’s no doubt mobile devices have become a ubiquitous, indispensable part of the American lifestyle. It is reported that 96% of Americans own a cellphone, with 81% being smartphones. This percentage has nearly doubled in less than a decade. The average smartphone user checks their device 47 times a day and spends nearly four hours browsing mobile content. Forecasts estimate that 73% of Internet users will access the web solely by smartphone as soon as 2025.

These statistics show that mobile will remain and continue to grow as a vital link to personalized, timely, location-relevant, and rewarding information. The benefits of mobile marketing in retail cannot be overstated. If your retail establishment has been on the fence about whether to invest more heavily in 2021 or hold off, here are six compelling reasons to pursue mobile marketing strategies with the greatest possible dispatch.

Marketing Efficiency.

Text message marketing and push notifications pay off. In a study of 300 businesses, 72% found that mobile and web app push notifications offer a greater or equal return on investment (ROI) when compared to email.

A little over half of retailers spend 21% or more of their digital marketing budgets on mobile, typically as a way to acquire new customers.

Further, 82% of companies say push notifications help them meet or exceed their business goals.

In addition to the efficiencies these marketing tactics provide retailers and businesses, customers’ response to these marketing efforts far exceeds other methods.

It is reported that the average open rate for text message marketing campaigns is 98% vs. email marketing campaigns which have a 20% open rate.

Another study also found that push notifications can increase app `by up to 88% and boost app retention rates by 3-10x.

Only 14% of retailers are considered “mobile-first” retailers, but this elite group sees a number of benefits:

  • 66% say mobile increases customer satisfaction. 
  • 65% say mobile increases sales revenue.
  • 62% say mobile has made their businesses more efficient.
  • 33% say mobile has lowered the cost of providing services to customers.

Customer Satisfaction.

Mobile devices have largely become the digital media consumption vehicle of choice, with two-thirds of Americans engaging with the web on smartphones rather than desktops.

Further, smartphones are the preferred mode of managing a loyalty program, with 70% of shoppers feeling more satisfied with a mobile app over a physical card, web app, or mobile wallet.

Through a mobile rewards app like Shopkick, consumers not only have the convenience of their program, points, and personal information in the palm of their hand, but they also have access to a wealth of information that can better inform their purchasing decisions.

Aside from consumers benefiting from the information provided by mobile rewards apps, retailers benefit just as much! Mobile rewards apps can hold a myriad of data, like past searches and purchases, favorites, and wish lists.

Retailers can use this data to create a personalized shopping experience for their consumers, providing them with tailored recommendations and helpful information all along the customer journey. In other words, retailers who can see the past can better inform the present.


Timely content keeps your brand top of mind. The fact that mobile devices are always on and available allows for greater timeliness than any other channel. Most SMS messages can be read at a glance, which appeals to the eight-second attention span people have today. Thankfully, the response time for SMS messages is equally quick—just 90 seconds—compared to the 90-minute response time for email.

Location-Based Relevance.

Location-Based Relevance.

Ninety percent of customers are willing to share their location as long as they receive something of value in return. This figure is up from just 20% a decade ago. Retailers can interact with locals to boost store traffic on a slow day or use contextual details to determine who is most likely to benefit from their products at the moment. For instance, a downtown basketball arena is a great place to market if you’re a sporting goods retailer or neighboring restaurant.

Instant Rewards.

Instant Rewards.

Instant gratification, like real-time rewards, is preferred by 63% of shoppers. Personalized and/or surprise rewards are also appreciated by loyalty club members who seek greater communication and connection with their favorite retailers. Almost 60% of consumers believe earning reward points is one of the most valued aspects of the shopping experience. And mobile is one of the top delivery vehicles, with 48% of loyalty program members rating SMS texts as “highly valuable.”

Lasting Impact and Increased Brand Value.

Mobile marketing helps retailers stay top of mind and drives incremental sales long after shoppers engage in smartphone-based promotions.

To successfully accomplish this, retailers partner with Shopkick, a leading mobile shopping app that drives engagement and rewards loyalty. The platform rewards shoppers with “kicks” (reward points) for completing a number of engaging activities, such as stepping into partnering retailers’ stores, locating and scanning the barcodes of promoted products, watching branded videos, browsing curated lookbooks, shopping with a linked credit card, and making retail purchases.

Once enough kicks are accumulated, they can be redeemed for a gift card of the shopper’s choosing (which can potentially be a gift card with the retailer where they initially earned the kicks).

Visa Decision Sciences measured retail sales for 12 months prior to initiating a partnership with Shopkick. They wanted to determine the incrementality of Shopkick’s program, and identify how many sales, transactions, and driven customers would not have occurred without Shopkick.

VISA found that 57% of all sales driven by Shopkick were incremental. The mobile campaigns were an effective way for retailers to expand their reach to new audiences and increase sales with new customers, who accounted for 73% of sales. Shopkick became a crucial platform for sustaining engagement and driving repeat purchases.

The benefits of mobile marketing in retail continue to create prosperity for businesses in 2020, and are almost guaranteed to continue doing so going into 2021. Partnering with an existing mobile app is one of the easiest and most cost-effective ways to dive into mobile marketing campaigns. An added perk of working with an existing mobile platform is that you can access your partner’s unique user base to grow your own audience. Membership for apps like Shopkick continues to grow, year over year, so why wait until the new year to get started on your very own mobile retail marketing campaign?

Shopkick offers retailers a partnership that provides all the benefits of mobile marketing in retail. Our partners use our mobile shopping platform to drive sales, capture market share, and produce an incredible ROI. Contact us to get started on your campaign today.



Shopkick is the fun and easy way to earn free gift cards for the shopping you already do. Download the app now!

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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.