However, when users sign up for the app they’re required to select or “favorite” the retailers they’re interested in seeing content from before they can take advantage of the service, which is a strong signal in and of itself. But retailers only have to pay on a CPE basis when users actually engage with the content.
Although Retale doesn’t know if a specific person made a purchase, it does work with location analytics company Placed for attribution to correlate behavior in the mobile app with transactional events using third-party data and loyalty card information. Retale has been able to calculate an incremental sales lift across categories of around 160%.
Axel Springer plans to keep investing in the platform and stay “aggressive” on the mobile front, Müffelmann said.
“Ecommerce is real, but the shift we’re all experiencing, especially in the US, is the tremendous momentum around mobile as a lifestyle tool, not just as a form of communication," he said.
That said, mobile isn’t going to kill brick and mortar. Neither will ecommerce. It’s about developing an omnichannel infrastructure that meets whatever need the customer throws at it.
“Brick and mortar isn’t going away, but retailers do know they have to change because you can’t control every transaction inside the store,” Dermody said. “As a client once said to me, ‘I don’t care what channel a person buys from as long as they buy from us.’”