Attribution

From Likes to Foot Traffic: How Social Media Actually Drives Real In-Store Sales

I

n this day of digital engagement, where everybody becomes a social media fanatic, people wonder if it really has the buying power that drives foot traffic and in-store sales. Not quite like the likes and shares on social media anymore; rather, social media is the epitome of a great tool to get customers from screens to storefronts. 

One of the best examples of this evolution is the latest collaboration involving the social media app TikTok and location data intelligence company InMarket, with clear evidence of how the social application can change online engagement into in-store purchases. This article explores how social media is changing the way retailers connect with their customers and proving its worth as a key purchaser of in-store sales, especially through TikTok.

They’re using a technology called LCI (Location Conversion Index), which tracks users who saw a TikTok ad and then visited a physical store. They start by comparing those who saw the ad to a control group that didn’t. But InMarket takes it even further with a sales lift attribution tool that tracks actual purchases using real-world credit and debit card transactions. No need for coupons, links, or anything manual—it’s all based on genuine consumer behavior.

For anyone skeptical about the power of social media, this partnership proves what many of us have been hoping for: social media can genuinely drive in-store sales. Even if you don’t use this exact tool, the pilot data alone is a strong testament to the effectiveness of social media in converting online engagement into real-world results.

Social Media: Critical to Retail

Whether or not social media impacts in-store retailing is a question that has fascinated marketers for decades. Indeed, while it may not have been established to enhance physical sales, building brand awareness and being involved with customers are probably two of the most effective channels for doing so. However, the sudden surge in spending on social media advertising combined with a shift in shopper behavior will trigger an environment in which fresh opportunities for linking online engagement to in-store sales will flourish. Since individuals browse through social media, they are not merely passing by content but also discovering new products, developing relationships with brands, and even being inspired to purchase.

Source: Social Media

This is a big deal for the industry, as it is a huge leap toward quantifying that influence. With InMarket's location intelligence, TikTok can now measure foot traffic and sales generated by its ads. It is not simply trying to raise awareness about a product's availability; it is about reaching the right person at the right place at the right time with the right message. Data from TikTok and InMarket proves that, indeed, social media ads can easily convert into in-store sales, hence giving brands tangible ROI on their social media campaigns.

The Technology: TikTok and InMarket Steps to Driving In-Store Sales

Two important tools are driving this collaboration: Location Conversion Index and sales lift attribution

Location Conversion Index: This is a relatively new technology that allows TikTok to see if there were people exposed to a TikTok ad who went to a brick-and-mortar store. LCI simply compares two groups of users who happened to see the ad and a control group that did not see the effect the ad has on foot traffic.

Source: Conversion Rate

This can be measured through this method on TikTok, allowing it to accurately tally the users influenced by the ad to visit a store. Hence, marketers have a real reading of how social media campaigns translate into in-store visits.

Sales Lift Attribution: InMarket takes it to the next step by using sales lift attribution tools that track actual purchases. Credit and debit card transactions are analyzed by this technology, which can identify which transactions can be ascribed to the exposure of a specific ad. All this is completely seamless-no coupon codes, links, or manual processes, making it very efficient and accurate. Brands can, therefore, see the impact of social media campaigns on in-store sales in hard data, all based on real consumer behavior.

Source: Sales Lift

These tools, together, represent a game-changer for marketers in the ability to measure the success of social media ads through foot traffic and in-store sales rather than just clicks or views online. This data-based proof that social media can drive purchases at the physical cash register has set the blueprint for future omnichannel retail marketing relationships between TikTok and InMarket.

Why This Partnership is a Game-Changer for Retailers

This TikTok-InMarket partnership perhaps is one of the most positive examples yet of a shift toward an omnichannel marketing approach. Omnichannel focuses on creating a seamless, hassle-free customer experience across all those various platforms and channels, in-store, online, or through social media. The strengths of TikTok have always been product discovery and brand engagement. But with LCI and sales lift attribution, TikTok now becomes a perfectly viable tool not only for providing awareness but actually driving purchases.

The partnership recognizes a much-needed insight: though social media is great for discovery, the reality is that many customers prefer the convenience and immediacy of shopping in stores for some items. TikTok isn't trying to fight this tendency—instead, they're embracing it, making their platform a valuable asset for brands seeking to influence customers at every stage of the funnel.

For example, a consumer might see a product on TikTok and add it to their mental list. Instead of buying it right there online, they easily decided to pick it up next time they're at a nearby store such as Target or Walmart. TikTok's alignment with this behavior is not only clever but visionary. Added to its value proposition for brands seeking a full-funnel marketing strategy, being a platform that drives online and offline conversions, TikTok is positioning itself as bringing together things that no other platform can in terms of what the user can experience.

Larger Implications for Social Marketing

This deal with InMarket has upped the stakes for social media and the capabilities of what is available to brands. Apps today, such as TikTok, can command a higher percentage of shopper marketing spending, the subset of marketing directed at making consumers decide to make a physical in-store trip that could result in a sale. Social media was not historically associated with sales drivers for brands; however, that is quickly changing thanks to InMarket's ability to track both locations and transactions in real time.

Source: Social Marketing

What does this mean for shopper marketing in the future? Among other things, retailers can now rebalance sections of their budget that traditionally went to in-store promotions, POS displays, or direct mailers into social media campaigns. Social media ads, when armed with data, are every bit as strong drivers of purchase behavior as in-store promotions, but with the added convenience of multisite connectivity to the target consumers. This paradigm shift is making it possible for brands to invest in social media with the confidence of knowing that such investments would have measurable returns.

What are the two major lessons retailers and marketers can learn from the TikTok-InMarket partnership?

The collaboration between TikTok and InMarket offers two key takeaways for retailers and marketers.

A Smart, Omnichannel Approach is Needed

TikTok understands that its platform is not a one-and-done purchase destination but rather a discovery platform that brings products to consumers' attention that, later, they may pick up in-store.

Source: Omnichannel

It's an omnichannel strategy-alignment of discovery through an online channel with the buys offline-it demonstrates something of consumer behavior that sets TikTok apart. It enables brands to drive engagement throughout the whole purchase journey, and doing so demonstrates that social media platforms can actually create real value at each step.

Proven ROI Data is the Game Changer 

LCI and sales lift attribution, among the many tools, will now allow social media campaigns to deliver hard ROI data. Brands will now stop guessing about their social campaigns to impact the physical store visits and instead measure that directly. Being able to prove a link between engagement on social media and an in-store purchase will be something incredibly valuable, especially at a time when marketing budgets are subject to much scrutiny.

Source: ROI

This level of transparency makes it easier for marketers to be able to justify the money spent on social media and gives them the confidence to allocate even more budget to this channel.

The Future of Social Media-Driven Retail

The more details that come to light regarding how social media interactions translate into in-store sales, the more emphasis brands are likely to place on platforms such as TikTok, Instagram, and Snapchat. At present, it is not unusual for brands and retailers to be open to upgrading their investment in those platforms; after all, with conversions tracked from online to in-store, social media is no longer just a "nice to have" part of the marketing strategy-it's an integral piece of the retail puzzle.

We will witness over the next few years some critical trends that would be side effects of this shift:

More investment in omnichannel campaigns

Brands will concentrate on campaigns in which offline purchases buttress online discovery. There are chances that we will see social media advertising coupled with local retail offers nudging people who might have engaged with online advertising to complete purchases in-store.

More Collaborations Between Social Media Companies and Data Firms

The partnership of TikTok with InMarket can be replicated with other social media companies. Instagram, YouTube, and new apps would also look to team up with data intelligence agencies in order to provide their ROI measurement platforms.

Greater Accountability in Social Media Marketing. As the major social platforms start to provide reliable ROI data, marketers will be held accountable for the use of that data in demonstrating the success of their campaigns.  Brands that do not adapt to this data-driven approach may lose market share to competitors that are smarter and better information-based regarding their marketing decisions.

Key Takeaways: Social Media’s Role in Driving In-Store Sales

First and foremost, TikTok's approach here is sheer genius. The proof of their platform is not about trying to force their commerce features, such as TikTok Shop. They recognize a trend: although social media is an incredibly powerful discovery tool, traditional retail isn't going anywhere. People might discover that new handbag on TikTok, but the chances are they are buying it at Target or Walmart the next time they go shopping. Instead of fighting this reality, TikTok has positioned itself in a smart alignment that delivers value for brands from discovery to conversion at the point of sale. It is the true omnichannel where TikTok leverages its strength in awareness and engagement to support real-time purchase behavior. That's smart and, indeed, visionary.

This also represents a turning point for social media within the broader retail landscape. With platforms like TikTok now in a position to measure in-store impact, social media just got positioned to take an ever-larger share of the shopper marketing budget. Now that InMarket's sales lift attribution tools are turning up, brands can finally stop guessing and start measuring the impact on physical store visits and purchases—the ROI data is as solid as can be. When marketers can actually prove in hard data the relationship between what is on their social network and people being in physical stores where these sales transactions are occurring, there really is nothing to talk about as to where all of those sales dollars will come from.

Marketers now have the hard data to demonstrate a clear ROI, proving that the journey from social media interaction to in-store transaction is more than just a theory—it’s a reality. This data allows companies to optimize their marketing spend, prioritize the most effective channels, and allocate more confidently to social media initiatives. When a brand can point to data showing a measurable link between a TikTok ad and an increase in foot traffic, or even in-store sales, it has the proof it needs to continue investing in social channels. 

The traditional divide between online and offline marketing is becoming obsolete, and social media is emerging as a foundational element of a fully integrated retail strategy. As this data-driven approach becomes the norm, social platforms will likely play an increasingly central role in shaping shopper marketing strategies and capturing a larger slice of retail budgets moving forward.

Posted 
Nov 11, 2024
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