What is Brick-and-Mortar Marketing? Complete Guide

What Physical Retail Marketing Has Taught Us

As a digital marketer, you might not believe me (I certainly didn't, until I did) that, yes, despite all the "retail apocalypse" talk, the US Census Bureau reported that brick-and-mortar stores made $5.927 trillion in sales in 2024. That's not a mistake. Done right, physical retail isn't just surviving, it's thriving.

What is the secret? Smart store owners aren't struggling against digital marketing, they're working to engage with it. According to Placer.ai retail analytics, upwards of 90% of Starbucks' sales shifted to drive-thru and mobile orders. Sephora increased traffic by 18.49% when it integrated AR technology with in store ambience.

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"The bar has been raised on what experience you're creating within that brick and mortar. For consumers and for businesses like us, both big and small, this has brought all these things to the fore and accelerated them."

— Michelle Gass, Former CEO of Kohl's Corporation

Understanding the Fundamentals of Brick and Mortar Marketing

What Sets Brick-and-Mortar Marketing Apart

In-Store Marketing The way advertising works in stores centers on using the physical presence of stores to create customer experiences that online channels alone cannot replicate. McKinsey's retail research has found that physical retail marketing is all about engaging the senses, delivering gratification at once, and forming relationships in the physical world, whereas digital marketing deals with click-based interactions.

The big difference is how rapidly you can experience something. Based on consumer surveys by PwC, 46% of people want to see and feel the product before purchasing it and 57% want to try it out before making a purchase. This is to say that traditional, brick-and-mortar marketing fulfills needs that can be difficult for digital media to fulfill.

The 5 Most Critical Elements of Brick and Mortar Marketing

1. Acquiring customers where they are

The mere presence of your store there can be a tool in dabbling in marketing. The right location, a designed-to-your-purpose storefront and successfully embedding into the neighbourhood all ensure more customers will find you.

2. Brand Experience Through the Senses

Physical stores engage all five senses, unlike digital touchpoints. The scent of freshly brewed coffee at Starbucks, the sensation of the fabric in clothing stores, and the look of well-designed displays all aid in the recall of a brand and make a connection with it for humans.

3. Getting what you want instantly

The fact that 40% of all shoppers say they like the speed with which they can buy things there gives brick-and-mortar stores instant gratification, the kind online cannot match.

4. Local Authority and Community Integration

Physical locations will make businesses stakeholders in the communities they serve, working with other businesses, hosting events and forming relationships with people in their surroundings to create competitive advantages that last for years.

5. Collecting Data Across Channels

POS systems, mobile apps, and customer interactions in today's brick-and-mortar marketing rack up a ton of data stores, left, right, and backwards, and you need that data to plan online as much as you need it to plan pants-meats-pants offline.

Results at Work: How Succesful Companies Design and Develop Superior Products and Services From leading American Corporations: Real-world Examples

Case Study 1: How Starbucks Revamped Its Drive-Thru

The Problem: Starbucks needed to continue to make sales during COVID-19, though it also had to abide by social distancing rules.

The Plan: Starbucks launched its "Bridge to the Future" program, including the expansion of drive-thru lanes and mobile ordering, according to SEC filings. Under feedback from users, they tacked on contactless payment and the option for pickup to their mobile app, while maintaining the high-end coffee experience that was expected by customers, according to market analysis from Reuters.

The Results:

• Over 90% of US sales shifted to drive-thru and mobile-order-and-pay
• 93 percent of drive-thru orders customers were satisfied with the accuracy
• A 15 percent increase in active Rewards members in the last year, with the total reaching 21.8 million
• Though the business model had shifted, the average transaction value increased above its usual amount

Key Insight: Effective brick-and-mortar marketing translates the physical "benefits" (fast service, high-end experience) into people-friendly outcomes without selling out the brand's values.

Case Study 2: The Retail Media Revolution at Best Buy

The Problem: Best Buy needed to find a way to generate profits from its stores while contending with the simple fact that it is hard to shop on Amazon.

The Plan: Best Buy leaned on first-party customer data to create targeted advertising campaigns for brand partners on a sophisticated retail media platform, according to Google Ad Manager case studies. To measure and track attribution across all of their web channels, both on-site and off-site, they employed Google Ad Manager.

The Results:

• Consumers who saw the ads received 10 times the money back they spent on the ads
• For targeted shoppers, the conversion rate increased 45 percent
• Multi-channel exposure had the highest increase in conversions
• Shoppers in all groups who saw ads did much better than those who did not

Key Point: Retail media monetizes store locations as profit centers other than direct selling by leveraging valuable first-party data from physical stores.

Case Study 3: How Sephora Expanded With an Experience-First Approach

The Challenge: Competing in a crowded beauty retail landscape that ranges from digital-only outlets to a brick-and-mortar department store.

The Plan: Sephora reportedly spent heavily on in-store experiences by opening smaller "Studio" formats that offered personalized services, beauty classes and the use of augmented reality technology, CNBC reported of retail coverage. As industry foot-traffic reports have reflected, they were concentrating on catering to customers who want things that are good for the environment and that are also attractive to younger customers.

The Results:

• Average visits per store grew 18.49% YoY
• A 21.78% increase in visits from Gen Z customers
• 81.8% more people out and about 2021 compared to 2019 before the pandemic
• Grew much faster than the broader cosmetics category, which expanded 6.28%

Key Point: Physical stores can see many more people come through their doors, even in very challenging markets, if they provide experiences that people will opt to go to.

The Seven Key Advantages of In-Store Marketing

1. Quick Hits Result in More Conversions

Physical stores make you avoid the wait that kinks so many online purchases. You can encourage impulse purchases, or make it easier for people to avoid abandoning their cart when they can walk with the same one directly out the door. According to EY consumer behavior studies, 90% of shoppers would rather go to a physical store because they can take something home immediately. So conversion rates are better.

MIT behavioral research reveals that the psychological impact of instant ownership is profound. People are far more likely to buy things when they can touch and feel them. This is because of what's known as the "endowment effect," which causes people to value things more simply because they have handled them.

2. Higher Customer Spending and Revenue Per Visit

Brian Gregg of McKinsey & Company in their omnichannel research:

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"If stores can deliver on a great experience and supplement it with a good mobile experience then they have real value to customers."

— Brian Gregg, Partner at McKinsey & Company

Shoppers who use more than one channel, according to Google retail studies of internal data, spend an average of 4 percent more when they visit a store, compared to those who use only one channel. A study on consumer spending finds that Americans blow $276 monthly on impulse purchases. You've just got more of this kind of spontaneous decision being made in favor of physical stores made, even if only because the product placement and in-store marketing displays are a bit smarter in physical stores.

The impact on revenue is far more than a single sale. Cross sell Physical store allows store associates to recommend products and show you how they work, with a Spiffy Site, you can increase an average order value with 15-25% more as compared to an online only sale.

3. Establishing Trust and Confidence You Just Can't Shake

There's a permanence and a legitimacy to being on the ground that websites just cannot convey. Customers believe that physical businesses are more stable, which is important when someone is making a large purchase or trying out a brand for the first time.

That trust edge is particularly valuable for companies that are selling services, luxury goods or complicated products that require expert guidance. Investing money in physical space demonstrates that you're serious about the local market and it gives customers a place to turn if something goes wrong.

4. One of a Kind Service – The Type You Can't Replicate with Digital

When you're in front of someone, you can work out problems, demonstrate products, and tailor your suggestions to that person's needs and desires. Knowledgeable staff can provide advice tailored to the situation, know why customers may be hesitant and address their problems immediately.

The statistics support this: Shoppers with personalized service in-store have a lifetime value 30% higher and are 65% more likely to make a repeat purchase than those without. Employees in physical stores can form emotional connections with customers, resulting in longterm loyalty.

5. Omnichannel Synergy Means Campaigns Work Better in General

Instead of competing with the digital channels, physical stores serve to complement all forms and types of marketing. Omnichannel marketing stats show that businesses with omnichannel strategies have 494% more orders than those that are not.

According to ICSC's halo effect research, opening new brick-and-mortar stores causes online sales to increase by an average of 6.9%, with new DTC retailers experience a 13.9% lift. Brick and mortar stores are marketing investments that enhance the performance of digital channels throughout their interaction.

6. Hyperlocal Market Development And The Power Of Community

Physical locations can be easier to target in traditional media, something digital marketing has a tough time with. Brick-and-mortar marketing can consider regional tastes, seasonal conditions, and community events to reach maximum coverage within the market.

By networking with others in your community, working with other businesses and getting involved in your neighborhood, you could really set yourself apart from your competition. Instead of outside vendors, businesses are community stakeholders and it creates competitive moats that endure.

7. Discovering New Products and Enhancing Brand Experiences

Physical spaces are three-dimensional brand expressions and discovery spaces. 55 percent of shoppers still say they like to discover new products by exploring stores, something that algorithm-powered online recommendations still can't quite replicate.

Interesting stores use their physical spaces to tell stories about their brands, do experiential marketing, and create communities that make people want to share their experiences on social media and tell their friends about them.

Questions People Ask About Store Marketing

How can I tell how much money I made from brick-and-mortar marketing?

To calculate the return on investment (ROI) of brick-and-mortar marketing, you need two sets of metrics: short-term and long-term. Focus on areas such as foot traffic, conversion rate, average order value and sales per square foot from the beginning. As per the rule of thumb of best retail analytics, you should track long-term metrics such as customer lifetime value, frequency of returning customers and how better for people in your area to know you.

The key here is to go with integrated analytics that can monitor cross-channel attribution. Employ point-of-sale (POS) systems integrated with your customer relationship management (CRM) system to monitor how your customers go from online research to purchasing something in your store (the ROPO effect). ANA response rate studies describe that sophisticated retailers earn 161% more ROI from direct mail compared to digital-only response by following these integrated customer paths.

Omnichannel measurement platforms illustrate how visits to a store influence online behavior and vice versa. They use technology such as beacon tracking, mobile app integration, and unified customer profiles.

What's the most difficult part about moving from digital-only to omnichannel?

The issue is primarily the difficulty of aggregating data. Digital marketers are accustomed to having all their customer data in one place, but when you throw in physical locations, it becomes more difficult to follow customers on their journey and personalize their experiences.

To successfully achieve this transition, CDPs covering both online and offline touchpoints are needed. "It's a classic mistake that people make in terms of taking too much away from digital channels that were performing well to drive physical growth, which ultimately impacts your online performance.

The most effective way to do this is to ensure your investments remain balanced and all your channels share the same goal. To try out integration before you go large scale, you can begin with pilot sites. Opt for tools like marketing automation platforms that are able to provide a seamless experience across all channels.

So how can I clarify why my physical store is more expensive than online-only alternatives?

Don't only consider operational costs, also consider customer value metrics. Physical stores have higher average order values and return rates (13.3% vs. 17.6% for online) and lower long-term customer acquisition costs (because customers return, and tell friends, and on and on) according to SPC retail analysis.

Brendan Witcher from Forrester Research writes in reports on the future of retail:

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"Physical retail still dominates the majority of retail sales, and will for some time to come. Indeed, $3 trillion of the $3.4 trillion in retail sales in the US went through the physical store."

— Brendan Witcher, VP Principal Analyst at Forrester Research

Bricks-and-mortar locations also offer multiple uses, among them acquiring new customers, marketing the brand, fulfilling online orders, or showing off high-end products. Investopedia Retail Economics advises including these cross-channel gains and the growing market opportunity among demographics who are less inclined to spend online in calculations of ROI.

What type of technology investments need to be made in a brick-and-mortar marketing world circa now?

POS devices that integrate with inventory management and customer databases, and local SEO tools to help customers find your business on the web, are necessary, in our opinion. Mobile apps that offer location-based connectivity, aggregated with mobile loyalty apps will be up there in terms of tech that matters.

You make fast saves with digital signage, and marketing automation systems connect your online and offline customer touchpoints. Fancy stores invest in beacon technology for proximity marketing and AR features to make shopping more fun.

But the most important is to deploy it in phases, first with the most necessary segments (such as POS and inventory management) and only then proceeding with more complex ones. Ensure all of your technology investments enable you to meet your omnichannel goals, rather than add more data siloes.

How can I compete with big online retailers like Amazon?

Leverage your own physical, not Amazon's strong suit. The research on retail strategy says you should create experiences that can't be replicated online by displaying products, hosting events offering personal service and making things available immediately.

Dr. Anthony Dukes of USC Marshall School in academic retail studies:

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"Even with the promise of same-day delivery, e-tailers may never be fast enough or meet too many specific consumer needs that physical retail locations can address immediately."

— Dr. Anthony Dukes, Professor at USC Marshall School of Business

Look out for features that make life easier, such as click-and-collect, same-day purchase and quick returns. Develop local knowledge and community connections that can give you an edge over the competition. Leverage your physical sites with services such as buy online pickup in store and ship from store as described in the omnichannel strategy guides.

How is the best way to market a brick and mortar store for more new customers?

To find new customers you'll need to do geo-fencing and proximity marketing and be found in searches and optimize for website "near me" searches, and participate in events and partnerships with other local businesses.

Social media that focuses on people based on where they are and what they're interested in makes it easier for people to discover things in their community. Token-based referral programs that incentivize existing customers to refer friends and family benefit from the inherent trust that people have in word-of-mouth recommendations.

The best tactics are those that make use of both digital and physical touchpoints. They can get people into the stores through online marketing and use real shopping experiences to form the long-term personal relationships with customers that generate repeat visits and referrals.

What is your strategy for inventory management across stores and e-commerce?

Put in place integrated inventory systems that track stock levels and flows in real time between online and in-store sales. By using physical locations as fulfillment centers for online orders, you can make the most of your inventory and minimize shipping costs.

Sophisticated demand forecasting lets data analytics determine the delta between demand locally and demand online making it easier to allocate stock. So you don't have stockouts which hurt CX, hold inventory back for peak periods or during seasonal fluctuations.

Contemporary stores consider their stock as one asset, rather than of pools of inventory online and off. This enables them to provide services such as "endless aisle" (ordering out-of-stock items for delivery) and "ship-from-store" fulfillment.

Essential Marketing Topics for Brick and Mortar Stores

C. Knowledge of the industry terminology allowing for better communication and strategic planning. Foot traffic counts the people who walk into your store, and conversion rate counts the people who buy something. Dwell time is the amount of time customers spend inside a store, and it is tied to how likely they are to make a purchase and how engaged they are with the brand.

An example of a skill related to visual merchandising is the ability to determine how to best merchandise products, create visual displays, and set up store layouts. Planograms (the shop-specific instructions for where to put the products), end caps (displays at the end of aisles that a lot of people walk past) and point-of-purchase displays that get people to buy things immediately are all exciting thoughts.

Omnichannel integration is ensuring that customers receive the same experience at every touchpoint. Effective offline marketing for brick-and-mortar e-commerce businesses needs to address two critical customer journey behaviors: BOPIS (Buy Online, Pick Up In-Store) and ROPO (research online, purchase offline).

Local SEO optimization ensures that your business is found in searches that are location based. Geo-fencing enables you to direct mobile marketing at customers when they are near your store. Hyperlocal marketing serves the needs and desires of individual communities, and thus is what distinguishes brick-and-mortar stores from online-only competitors.

Related Terms

• Digital Marketing - Marketing using digital channels and technologies to reach target audiences
• Omnichannel Marketing - Seamless, integrated customer experience across all marketing channels
• Customer Experience (CX) - Overall experience customer has across all touchpoints with brand
• Local SEO - Optimizing online presence for location-based searches and local customers

Expert Tips to Help Implement Successfully

Building a Strategic Foundation

To begin, create a full customer journey map to understand how your audience interacts with your brand, both on- and offline. This analysis demonstrates where integration might make sense and also where there may be issues that would harm cross-channel experiences.

Invest in robust data integration systems that allow you to view all of your customers' information in one place. Without one, you can't personalize your marketing, much less know which of your marketing leads to sales.

Maintain a consistent brand across all channels, but ensure each channel is optimized for its own requirements. Your in-store experience should match your digital brand promise and maximize being in a store, whether that's engaging the senses or getting assistance immediately.

Important Things for Operational Excellence

The importance of training the staff to success in all channels. Workers must learn how to assist with mobile orders and returns, comprehend cross-channel services and let customers know why they should shop in stores, rather than online.

To accommodate other types of customers, provide flexible fulfillment options such as BOPIS, curbside pickup and same-day delivery. Transparency of inventory across channels prevents customers from getting mad and lets employees provide the right information about product availability.

Cross-channel return optimization facilitates easy returns regardless of the location of purchase, enhancing purchase confidence.

Technology is Going to be Put to Use Wherever Possible

Begin with fundamental systems, and implement advanced features on a rolling basis. Ensure a seamless experience across all digital touchpoints on mobile. Which is important considering 87% of shoppers research products with a smartphone when in a store.

Employ unified reporting to see how each channel is performing, and how it got there. Automation shouldn't just be about keeping customers interested between visits, it should be about providing customers with types of experiences that are based on data from all of their interactions with the business," he says.

They use AI and machine learning to not just support online shopping (helping to optimize their inventory of products and make personalized recommendations), but to also manage their offline operations.

Brick and Mortar Store Marketing of the Future

Physical structures, instead of evaporating, are morphing constantly. Estimations made by forecasters in retail markets expect that the global brick-and-mortar sales will amount $28.3 trillion by 2030. That's due in part to experiential retail ideas and an all-channels-connecting strategy.

Experiential retail, in which stores increasingly serve as places to learn about a brand, gather with friends and otherwise enjoy oneself, will be a big part of successful future strategies. As PwC's retail technology trends demonstrate, AR, AI, and IoT will help make customer experiences more personal, and efficient, but they will not replace human interactions.

More and more, consumers are making their product choices on the basis of what the environmental ramifications are and where the product came from. That's something that can give physical stores an advantage, because they can team up with local companies and ship items in a way that's better for the environment. As McKinsey retail insights put it, the future is a place where stores understand that marketing in person is not a matter of making a choice between physical and digital, it's about making experiences that leverage the best parts of each channel.

Conclusion: Your Competitive Advantage In A World With Too Much To Watch And Read

Brick and mortar marketing isn't old school, it's a power play waiting to be leveraged. Your competition is digital Only The digital only share of the market is derived from extensive retail data. But with some restrictions partly lifted, physical stores offer at least one benefit that online-only businesses can't: new opportunities to get customers, keep others and grow revenue.

According to US retail market data, 82% of retail sales still take place in brick-and-mortar stores. The most successful retailers are the ones that merge their channels, rather than keep them apart. This guide will reveal how to transform physical locations from where you lose money to where you make money to fuel your new marketing ecosystem. You can get there by taking advantage of the tactics, technology, and best practices we outline for you below.

And the question isn't does brick-and-mortar marketing have a future, it's will you leverage the edge it provides over your competition. Oh and don't forget to map the customer journey, purchase integration technology platforms and concentrate on creating experiences that make it worth going to. In an increasingly digital world, your physical presence makes you unique.

References:

• US Census Bureau - Monthly Retail Trade Reports and Annual Retail Statistics
• National Retail Federation - Industry Outlook and Consumer Research Studies
• ICSC Research - The Halo Effect III: Where the Halo Shines Study
• McKinsey & Company - The Future of Retail: How to Make Your Bricks Click
• Forrester Research - Omnichannel Customer Journey and Retail Strategy Reports
• PwC Consumer Markets - Holiday Outlook and Digital Transformation in Retail
• Google Ad Manager - Best Buy Retail Media Success Story
• Placer.ai Analytics - Foot Traffic Analytics and Retail Performance Data
• Capital One Shopping Research - Brick-and-Mortar Retail Statistics and Market Analysis
• EY Global - Future Consumer Index: Physical Store Preferences Study
• MIT Sloan Management Review - What Successful Brick-and-Mortar Retailers Get Right
• UniformMarket Statistics - Omnichannel Shopping Statistics for Retailers and Marketers