Retail is constantly changing and integrating the most recent technologies. However, there are still some “old-school” or traditional tactics that have great results. Combining those strategies with the latest tech can significantly improve sales and customer engagement. In this article, we are going to talk about cross-promotion or cross-selling and how it can be enhanced with in-store retail media.
What is cross-promotion and why it’s important?
Cross-promotion involves strategic partnerships where complementary brands or products work together to boost visibility and customer interest. Common examples include bundled products, co-branded promotions, or joint marketing campaigns. This approach provides numerous benefits, including expanded market reach, enriched customer experiences, and reduced marketing costs through shared promotional efforts.
Think about going to the store to grab a few things for breakfast. You go to the dairy section and find a promotion on milk + cereal. While it might not be the brand you usually go for, you are more likely to buy that promotional package. Statistics show that companies utilizing cross-selling strategies reported up to 30% revenue increases.
The role of in-store retail media in cross-promotion
In-store retail media encompasses digital displays, interactive kiosks, shelf talkers, and POP displays such as Tokinomo’s Shelfobot and Visibubble. These tools can improve cross-promotions by drawing customers’ attention at critical moments and encouraging immediate action. They provide real-time interactive opportunities and measurable outcomes, ensuring promotional efforts are effective and targeted.
Effective cross-promotional strategies using in-store retail media
Bundling & product pairing
Retailers often bundle complementary items to enhance customer convenience and drive additional sales. For instance, you can use Tokinomo’s Shelfobot to promote chips alongside soft drinks to increase product visibility and encourage customers to make joint purchases.
Collaborative advertising campaigns
Collaborative campaigns allow two brands to mutually promote their products via shared advertisements. Brands like Pepsi and Lay's frequently partner for co-branded ads displayed digitally in-store, creating appealing promotional narratives that resonate with customers and drive simultaneous product sales.
Seasonal or thematic campaigns
Seasonal promotions are highly effective when integrated with in-store media. Retailers can showcase summer-themed product bundles, such as grilling essentials or beach-related products, through digital signage during peak shopping seasons. Similarly, themed campaigns during holidays such as Thanksgiving offer convenient bundles of related grocery items, increasing customer appeal and simplifying shopping.
Influencer and brand partnerships
Influencer-driven cross-promotions amplify brand visibility by leveraging celebrity or influencer endorsements. A successful example is Tokinomo's partnership with Dia Supermercados. Using Tokinomo's innovative Shelfobot technology, the campaign featured influencer-endorsed products. This significantly captured shoppers' attention and effectively drove product sales and engagement.
Interactive displays and gamification
Interactive and gamified retail experiences encourage deeper customer engagement. Interactive kiosks or Tokinomo robots can deliver engaging experiences such as games or challenges where customers earn discounts or special offers when buying bundled products, adding an entertainment factor to the shopping experience.
Upselling and cross-selling
Dynamic in-store displays can intelligently cross-sell or upsell additional products. For example, digital screens near electronics might recommend premium accessories or complementary products, such as recommending high-end headphones to customers purchasing smartphones, thus increasing overall transaction value.
Measuring the success of cross-promotional campaigns
In a brick-and-mortar setting, evaluating the success of cross-promotional campaigns requires a mix of sales tracking, customer behavior observation, and direct engagement. KPIs tailored to in-store retail include:
- Lift in Sales Volume: Monitoring increases in the sales of both primary and secondary (promoted) items during the campaign period.
- Bundled Product Performance: Assessing how often bundled or co-merchandised items are purchased together, indicating effective product pairing.
- Foot Traffic Changes: Measuring any uptick in store visits during the promotion using foot traffic analytics tools like sensors, counters, or video analytics.
- In-Store Engagement: Tracking how many customers interact with promotional displays, demo stations, or signage. For example, Tokinomo Shelfobot shows you how many times the display was activated once a shopper passed by the products.
- Conversion Rate: Analyzing the percentage of shoppers who make a purchase after engaging with a cross-promotional display or product setup.
Effective methods for data collection in-store include:
- POS System Data: Provides immediate insights into what’s selling, at what volumes, and when. Look for patterns related to the timing or location of cross-promotional efforts.
- Loyalty Programs: These can offer detailed insights into customer behavior and allow retailers to track repeat purchases and demographic data associated with specific promotions.
- Customer Surveys and Staff Feedback: Simple in-store questionnaires or feedback from front-line employees can reveal qualitative insights—like which pairings customers found appealing or confusing.
Tracking these metrics enables retailers to make data-driven decisions, refine product placement strategies, and strengthen future partnerships.
Common challenges and how to tackle them
Executing successful in-store cross-promotions comes with a unique set of challenges and considerations that retailers must address to maximize impact:
- Display and shelf space management: In-store real estate is limited. Careful planning is needed to position cross-promoted items together in a way that feels intentional and not cluttered, ideally in high-traffic areas or end caps.
- Visual merchandising consistency: Both brands involved in cross-promotion need to ensure that their visual styles and messaging are aligned. Poorly designed signage or conflicting brand aesthetics can confuse shoppers and reduce credibility.
- Staff training: Sales associates should be informed and enthusiastic about the promotion. When staff can confidently explain the value of the bundled offer or product pairing, conversion rates typically improve.
- Inventory coordination: Ensuring that both promoted items are in stock and available throughout the campaign is essential. Running out of one product can derail the entire promotion.
- Localized campaign effectiveness: What works in one store or region might not work in another. Retailers must consider local buying habits, demographics, and even store layout when planning promotions.
- Privacy concerns around in-store tech: As more stores adopt customer-tracking technologies (like cameras or sensors), it’s important to use them responsibly. Clearly communicating how data is used and ensuring compliance with privacy regulations is crucial.
The future of cross-promotion through in-store media
The future of cross-promotion in retail is being reshaped by rapid advancements in artificial intelligence (AI), machine learning, and data analytics. These technologies enable retailers to move beyond traditional, broad-spectrum promotions to offer highly personalized, context-aware experiences—both online and in-store. According to McKinsey, 71% of consumers expect companies to deliver personalized interactions, and 76% get frustrated when this doesn't happen.
AI-driven personalization allows retailers to analyze vast amounts of customer data—including past purchases, in-store behavior, and real-time preferences—to dynamically recommend product pairings and tailor promotions to individual shoppers. For example, smart shelving and AI-powered digital signage can adjust messaging based on shopper demographics or loyalty data as they approach, creating a more relevant and persuasive experience.
Cross-promotional strategies powered by in-store retail media offer substantial opportunities for brands to improve customer engagement, maximize promotional effectiveness, and drive incremental sales. Retailers who leverage these innovative strategies and technologies will be better positioned to meet evolving consumer expectations, continually refining their approaches based on measurable performance data.
