By Benjamin Roussey

The meteoric rise of e-commerce in recent years, which was accelerated by the pandemic, has dramatically shifted customer behavior. In the post-pandemic world, many brick-and-mortar retailers have found themselves competing with the convenience, extensive product selection and safety of online shopping. With a vast majority of customers now accustomed to online purchases, the challenge for physical stores is more pronounced than ever: how to bring back inactive customers into their stores. 

Causes of customer inactivity and disengagement

Customer inactivity occurs when someone who used to shop regularly at a store becomes disengaged and stops making purchases for a significant period. Identifying why customers have stopped engaging with your store is the first step to building strategies to bring them back. 

Increased online shopping habits 

The pandemic made online shopping a necessity, and many customers have now become habitual to purchasing from the comfort of their homes at the press of a button. The ability to shop 24/7, compare prices and read customer reviews and ratings online has become a major draw. The high dependence on smartphone apps for a host of activities also keeps customers returning to online platforms instead of visiting physical stores.

Changing customer preferences 

Some customers have found preference for new brands and retailers that only offer their products online. E-commerce platforms have the ability to showcase a far wider variety of products in different colors, designs, sizes and specifications, including niche items not readily available in-store. This flexibility, coupled with curated recommendations and personalized, data-driven shopping experiences, can shift customer loyalty away from traditional retail.

Aggressive promotion and pricing by e-commerce platforms 

Online retailers run frequent sales, flash deals and aggressive promotions that may be hard for physical stores to compete with. Their ability to offer lower prices due to reduced overhead costs, combined with low-cost digital marketing strategies, makes it easier to attract customers and keep them loyal to online platforms in the times of high inflation and unpopular gas prices.

Convenience of delivery and returns 

The same-day or next-day delivery options and hassle-free return policies offered by most e-commerce platforms are the other significant factors in customer disengagement from brick-and-mortar stores. Customers increasingly expect fast, free shipping and easy returns, which is easier with online retail due to their large daily volumes compared to in-store shopping. 

Strategies for physical retailers to re-engage inactive customers

Launch email marketing campaigns

Email marketing remains one of the most effective channels to re-engage customers. Brick-and-mortar retailers should segment inactive customers and create targeted email campaigns that address their unique needs and preferences. Key elements to consider include:

  • Personalization: Use customer data to personalize the content of your email campaigns. Include the customer’s name, reference their previous purchases and suggest products they might be interested in based on their shopping history.
  • Incentives and offers: Offer time-sensitive discounts, exclusive promotions or free gifts for in-store visits. These incentives can encourage customers to return to the store. For instance, “Come back and enjoy 20 percent off your next in-store purchase.”
  • Reminders of what they are missing: Remind customers of the unique experiences that brick-and-mortar stores offer, such as personalized customer service, in-person product demonstrations or special events.

Pro tip: A well-crafted “We Miss You” email series, where you send gradual reminders of exclusive offers or store events, can nudge inactive customers back.

Create loyalty programs and VIP experiences

Loyalty programs are a powerful tool for customer retention and re-engagement. Customers who have stopped visiting your store may not feel incentivized to return unless they see real value. Enhance your loyalty programs by:

  • Offering points for in-store purchases: Encourage inactive customers to visit the store by awarding more points or rewards for in-store purchases than for online ones. Make sure the benefit is clear, such as “Earn double points for purchases made in-store this weekend.”
  • Creating exclusive in-store experiences: Introduce VIP-only events, early access to new product launches, or invite-only sales for loyalty members. The key is to make these experiences something that cannot be replicated online.
  • Tiered benefits: If your loyalty program has tiers, make it enticing for inactive customers to reach the next level with in-store offers. Offer benefits such as free personal shopping services or special discounts only available to upper-tier members.

Place targeted social media ads

Social media ads offer advanced targeting options, making it easier to reach customers who have not visited your store in a while. Use platforms like Facebook, Instagram, YouTube and TikTok to create hyper-targeted ads that address the specific reasons for their inactivity.

  • Geofencing ads: Target customers when they are near your physical location with geofencing ads. These ads can serve as timely reminders and offer exclusive promotions for those who visit your store.
  • Showcasing in-store exclusivity: Run ads that showcase in-store-only products or events. Customers are more likely to come back if they see that your store offers something unique that cannot be found online.

Offer an Omnichannel Experience

The convenience of online shopping is one of the key reasons why customers have been reluctant to return to physical stores. To win them back, brick-and-mortar retailers need to blend the convenience of online shopping with the tangible experience of in-store shopping. This is where omnichannel strategies come in.

  • Buy online, pick up in-store (BOPIS): This hybrid model combines the ease of online shopping with the immediacy of physical retail. Encourage inactive customers to take advantage of BOPIS by offering faster pickups, exclusive in-store discounts or extra loyalty points for choosing this option.
  • Reserve online, try in-store: Another great omnichannel tactic is letting customers reserve items online to try on in-store. This eliminates the risk of wrong sizing and enhances the in-person experience.

Host in-store events and experiences

The pandemic caused many people to shift away from in-person events, but that is now a thing of the past. Customers are once again eager for engaging, tactile product experiences that cannot be replicated online. Create opportunities for customers to return to your store by organizing:

  • Product demonstrations or workshops: Engage customers with interactive product demos, workshops or tastings that highlight your products in ways that are best experienced in person. For example, beauty retailers can host makeup tutorials, while furniture stores can offer home decor workshops.
  • Local community events: Partner with local artists, influencers,or community leaders to create a unique experience. Hosting pop-up events or collaborating with other local businesses can draw customers who want to support the community.
  • Seasonal promotions: Seasonal events such as holiday sales or back-to-school promotions can create a sense of urgency. Offering a unique in-store atmosphere—think holiday decorations or exclusive seasonal products—adds appeal.

Run direct mail campaigns

In today’s digital world, a well-timed, personalized direct mail piece can stand out in a way that email or social media cannot. For disengaged customers, sending a special postcard or letter that offers a discount or invitation to a special event can feel more personal and meaningful.

  • Exclusive in-store offers: Make the direct mail piece time-sensitive and tailored for in-store purchases. For example, “Bring this postcard into the store for 25 percent off your next purchase—valid only for the next 30 days!”
  • Personalized messaging: Include personalized messaging that makes the customer feel valued and missed, such as “We’ve noticed it’s been a while since your last visit. We’d love to welcome you back with a special offer.”

Leverage influencers and local partnerships

Building partnerships with influencers or local businesses can help brick-and-mortar retailers reach new audiences while re-engaging existing customers. Collaborating with trusted figures or brands that share a connection to your customer base can provide a fresh reason for customers to visit your store.

  • Influencer events: Invite influencers with local followings to host in-store events, meet-and-greets or product launches. By leveraging the influencer’s reach, retailers can draw their followers into the physical store, where they may discover new products or services.
  • Collaborations with local businesses: Partner with nearby businesses to create cross-promotions or joint events. For instance, a clothing retailer could partner with a local coffee shop to offer customers a discount at both locations. This collaborative approach helps drive foot traffic by appealing to customers who already frequent other trusted local spots.

Gamify the shopping experience

Gamification is a highly effective method for boosting customer engagement, creating excitement and giving customers a compelling reason to return to your store. By offering rewards, challenges or exclusive in-store perks through game-like mechanisms, retailers can foster a sense of fun and competition that motivates customers to engage more frequently.

  • In-store challenges: Create simple challenges where customers can earn points or prizes for completing certain tasks, such as visiting the store multiple times within a specific period or purchasing certain categories of products.
  • Scratch-and-win promotions: Offer scratch-off cards with varying rewards that customers can only redeem in-store. These rewards could range from discounts to free products, which not only incentivize a return visit but also create a sense of excitement and unpredictability.

Provide hyper-personalized shopping experiences

One of the key advantages of brick-and-mortar stores over online retailers is the ability to provide deeply personalized, face-to-face interactions with customers. To stand out in the era of convenience, retailers can offer hyper-personalized shopping experiences that cater to the unique needs of their inactive customers.

  • Personal shopping services: Offer personalized shopping appointments where customers can receive one-on-one assistance from trained sales associates. This bespoke service adds value to the in-store experience by fine-tuning product recommendations to the customer’s individual tastes and preferences.
  • Customized offers based on past purchases: Use customer data to create exclusive offers based on their previous in-store shopping habits. For example, if a customer frequently purchased skincare products, send them a personalized invitation to a skincare consultation event or offer a discount on their favorite products.

Utilize customer feedback

Sometimes the best way to understand why customers have become inactive is to simply ask them. Use customer feedback surveys, either through email or social media, to find out what may have caused their disengagement and what would bring them back.

  • Incentivize responses: Offer a small reward, such as a discount or entry into a giveaway, for completing the survey.
  • Implement feedback: Once you have actionable feedback, make changes that address customer concerns. Whether it is improved customer service, easier parking or more exclusive products, showing customers you’ve listened can help rebuild their loyalty.

Bringing customers back to physical retail stores

While online shopping continues to dominate in a hyper-competitive marketplace, brick-and-mortar retailers can still thrive by creating experiences that customers cannot get online. Using a judicious mix of targeted re-engagement marketing strategies, retailers can successfully bring back inactive customers and rebuild long-term brand loyalty. 

Brick-and-mortar stores offer something that e-commerce cannot: personalized, human interactions, a tactile product experience and instant gratification. By capitalizing on these unique strengths, physical stores can reinvigorate their customer base and remain competitive in the digital age.