Online and offline shopping have merged into a single experience. Customers move freely between digital screens and physical stores, researching products online, comparing prices on mobile, and showing up in person at stores ready to buy. For retailers, this shift brings a clear opportunity: connect digital engagement with in-store action.

O2O marketing, or online-to-offline marketing, is designed to promote and facilitate the online-to-offline connection. It helps brands guide customers from digital discovery to in-store action. A study by McKinsey & Company found that 60% to 70% of shoppers [1] use both online and offline methods while researching products. Another study from Invoca reports that 81% of retail shoppers [2] conduct online research before making in-store purchases.

This article breaks down how O2O marketing works, how it’s different from omnichannel, and the strategies, tools, and tactics that are helping retailers turn digital engagement into real-world revenue.

Key Takeaways:

• O2O marketing uses digital campaigns to drive store visits through tactics like BOPIS, geotargeting, and QR code prompts.
• It focuses on converting online intent into offline action, ideally a purchase, using location data, inventory visibility, and customer behavior.
• Unlike omnichannel, O2O is action-driven and designed for short-term, measurable outcomes like in-store traffic and revenue.
• The strategy depends on connected systems across ads, CRM, and inventory to deliver a seamless and delightful customer experience.
• Retailers use O2O to raise average order values, improve loyalty, and reduce fulfillment costs through strategic local execution.

What is O2O Marketing?

O2O, or online‑to‑offline marketing, is a strategy that uses digital touchpoints to drive customers into physical stores. Brands use websites, mobile apps, social media, and email campaigns to promote store visits, local pickups, or in-person experiences.

It’s commonly used in scenarios like:

• Mobile coupon redeemed in store
• Click-and-collect or BOPIS
• Push notification triggered by store proximity

How O2O Marketing Works?

The O2O marketing process starts when a customer interacts with a brand online. That could be through an ad, a product search, or an email campaign. Instead of completing the purchase digitally, the shopper is prompted to visit a nearby store. This might be to reserve a product, redeem a special offer, or browse additional options in person.

At the operational level, O2O strategies require coordination across digital and physical systems. This includes syncing inventory data, using location-based targeting, and tracking customer behavior across platforms. Each in-store visit also feeds new insights into future campaigns, making the strategy smarter over time.

When done right, O2O drives more than just foot traffic. It raises average order value, improves conversion rates, and helps retailers compete locally with precision. Most importantly, it meets shoppers on their terms, giving them flexibility while strengthening the in-store relationship.

O2O Marketing vs Omnichannel Strategy

While both O2O marketing and omnichannel strategies connect digital and physical experiences, they play very different roles in a retail strategy.

O2O marketing strategy is campaign-focused. It’s used to prompt specific actions, with the goal is to turn online interest into offline behavior that can be tracked and measured. These efforts are often time-bound, location-specific, and geared toward immediate outcomes.

Omnichannel is broader and more infrastructure-driven. It’s about maintaining a consistent experience across every channel a customer might use, which could be browsing a website, talking with support, receiving emails, or shopping in-store. It relies on unified systems to keep data, messaging, and service connected at every touchpoint.

Let’s have a look at the key differences between the two:

Aspect	O2O Marketing	Omnichannel Strategy
Primary Goal	Drive offline actions from online engagement	Provide a seamless, consistent experience across all channels
Focus Area	Campaign-driven, action-specific	Experience-driven, system-wide
Typical Use Cases	In-store visits, click-and-collect, local promotions	Unified shopping journey, cross-channel support
Timeframe	Short-term, often tied to specific events or offers	Long-term, continuous
Customer Journey	Starts online, ends with an in-person interaction	Moves fluidly across digital and physical touchpoints
Data Use	Used to trigger specific actions like store visits	Centralized to maintain continuity across all interactions
System Requirements	May require local targeting, basic data sync	Requires integrated backend systems and shared data layers
Nature	Tactical	Structural

In short, O2O is used when the goal is to drive store visits through digital triggers. Omnichannel is recommended when building a consistent experience across every stage of the customer journey.

Benefits of O2O Marketing for Retailers and Brands

O2O marketing helps retailers turn digital attention into in-store revenue. Each benefit below focuses on specific outcomes that improve operations, sales, and customer experience.

1. In-store Experience Guided by Online Behavior

With O2O, retailers can use digital signals like past purchases to tailor in-person experiences. For example, a customer researching noise-canceling headphones online can be met with informed recommendations or exclusive offers in-store. This creates more relevant conversations and higher conversion rates without guesswork.

2. Increased Store Traffic with Added Revenue Potential

O2O strategies such as buy online, pick up in-store (BOPIS), app-based coupons, or localized promotions bring more shoppers through the door. These visits frequently lead to impulse purchases. More than 67% of BOPIS customers [3] buy additional items at pickup, increasing basket size without extra acquisition cost.

3. More Control Over Inventory and Fulfillment

Linking online browsing with in-store stock enables real-time visibility and faster decision-making. Customers can see what’s available nearby, reserve items instantly, or choose same-day pickup. This avoids unnecessary shipping and reduces order cancellations caused by stock mismatches.

For retailers, local fulfillment has a clear advantage. Instead of sending everything from a central warehouse, nearby stores can handle the order. This shortens delivery time, lowers shipping costs, and speeds up the process.

4. Increased Customer Loyalty and Stronger Relationships

O2O makes it easier to offer consistent loyalty experiences across touchpoints. Customers can earn points when they buy online, or if they make an offline purchase, they can scan a receipt in person to earn extra points, and redeem their points wherever it’s most convenient.

Let’s say, a customer might browse a brand’s online shopping app, place a pickup order, and get loyalty credits. The following week, they visit a store, scan their membership ID at checkout, and earn more reward points. Later, they might redeem those points for an online-only item or apply them to a discount during their next store visit. This improves retention and encourages blended shopping behavior, making the relationship feel more flexible and rewarding.

5. Better Customer Insights for Smarter Marketing

O2O interactions produce highly specific insights, like which messages drive in-store visits or how frequently certain customer segments shop in person. These insights allow brands to refine promotions, optimize store layouts, and target digital campaigns with greater precision.

O2O marketing gives brands a way to create connected retail without reinventing the entire business model. It focuses on short paths between intent and purchase, making the customer experience more seamless and the business more efficient.

Key O2O Marketing Strategies

The strategies below go beyond theory. Each one shows how data, timing, and digital channels work together to pull customers from screens into stores and drive measurable results.

1. Buy Online, Pick Up In Store (BOPIS)

BOPIS is one of the most successful O2O tactics today. In 2024, BOPIS contributed 9.64% to global e-commerce revenue [4], generating approximately $579 billion in sales worldwide, based on total e-commerce sales of $6.01 trillion [5].

The real strength of this strategy lies in what happens after the pickup: 85% of BOPIS users [6] make additional purchases once they’re in the store.

BOPIS makes services faster and more reliable, especially when your inventory, pickup alerts, and POS systems are perfectly integrated.

How you can leverage it:

• Show nearby store stock and estimated pickup windows on product pages.
• Notify staff instantly when a BOPIS order arrives, so they can prepare it and suggest complementary items.
• Feature popular in-store add-ons near the pickup counter to turn pickups into impulse purchases.

Petco’s BOPIS model [7] combines speed with curbside convenience. Customers can place orders online and pick them up in-store or from their car with no waiting required.

2. Click-and-Collect / Curbside Pickup

Click-and-collect is an extension of BOPIS by offering flexible fulfillment options like locker pickup and contactless service. By 2030, the click-and-collect lockers market is expected to reach $5.7 billion [8], with groceries leading the way. Retailers can place coupons or incentives inside the lockers to encourage shoppers to enter the store immediately or return later for extra buys, effectively turning a curbside pickup into an upsell opportunity without added acquisition costs.

Target Australia offers a Click & Collect [9] experience that focuses on speed and convenience. Shoppers can pick up their order just 2 hours after placing it online, which is way faster than the standard 3 to 5 business-day delivery window.

This model resonates with time-pressed customers who prioritize speed and control over traditional delivery. It also reinforces trust by giving shoppers a reliable, low-friction way to receive orders on their terms.

How to implement it:

• Test lockers or designated pickup zones to streamline the experience
• Partner with other local retailers; for example, ASDA has partnered with over 100 UK retailers through its Toyou program.
• Monitor which shoppers browse post-pickup to tailor future offers

3. Location-Based Offers and Geotargeting

Using geotargeting, brands can send personalized promotions to shoppers when they’re physically near a store location. A simple message like “You’re nearby! Take 20% off today only” can drive immediate store visits by turning proximity into purchase intent.

This approach works because timing and context are well aligned. Unlike generic discounts, location-based messages respond to a shopper’s real-world behavior, increasing the likelihood of action. When paired with previous browsing activity or purchase history, these prompts feel less like ads and more like useful nudges, making them far more effective at driving in-store visits and spontaneous purchases.

How to set it up correctly:

• Set up geofencing around store locations using tools like Google Ads or Meta.
• Trigger personalized offers based on proximity and recent browsing behavior.
• Send push notifications or SMS during high-traffic or high-intent moments.
• Track redemptions and optimize based on store visits, offer performance, and customer response data.

Leading coffee chains like Starbucks and Dunkin’ use geofencing [10] in their mobile apps to trigger on-the-spot promotions. For example, Starbucks might send a “Happy Hour BOGO” push notification when users walk near a store during promotional hours. These timely, personalized messages convert proximity into store visits.

4. Reserve Online, Pay In-Store (ROPI)

ROPI allows customers to reserve products online and complete the purchase at a physical store. Unlike traditional e-commerce, no payment is collected upfront. Instead, the product is set aside, and the customer pays only when they visit the store to collect it.

This tactic adds a layer of commitment without friction. It appeals to customers who want to secure an item without rushing a purchase decision or sharing payment details online. For retailers, it minimizes cart abandonment, encourages foot traffic, and opens the door for in-store upselling.

Zara has implemented ROPI [11] to reduce stockouts and create a sense of exclusivity. Customers are drawn into stores with a confirmed reservation, often leading to additional purchases once they arrive.

The strategy works especially well in fashion, electronics, and beauty categories, where customers often want to see or try a product before paying.

Ways to put it into action:

• Add a “Reserve now” or “ROPI” button on product pages
• Make pickup seamless and clearly communicate reservation expiry times
• Train staff to cross-sell when customers arrive

5. In-Store Digital Tools: Kiosks and QR Codes

Digital tools inside physical stores help close the gap between limited shelf space and the full product experience. Kiosks, tablets, and QR codes extend what customers can do on-site, letting them browse online-only items, access reviews, or explore promotions while remaining in the store environment.

For example, if a product is out of stock in a certain color or size, shoppers can use an in-store kiosk to order it on the spot. QR codes placed on displays or shelves can link directly to product demos, care instructions, or curated bundles, making the shopping journey more informative and engaging.

It provides a highly convenient shopping experience and also creates an interactive environment that blends discovery with self-service, giving customers more control while subtly encouraging longer visits and larger basket value.

What you’ll need to do:

• Add QR codes for each product category to link to videos or bundles.
• Use tablets or interactive displays to show reviews, availability, or size guides.
• Measure dwell time before and after implementing digital touchpoints.

6. Hyperlocal Ads Based on ZIP Codes and Store Events

Targeted ads based on ZIP code, local events, or in-store availability help you reach shoppers within your store’s set radius. It is pretty much similar to geofencing, but here, the area is much larger, since you want to attract not just someone who is passing by, but is located in the same town or city.

Instead of broad national campaigns, hyperlocal ads speak directly to the communities around each store. You can showcase limited-time in-store offers, promote local events, or highlight real-time product availability.

Steps to make it work:

• Launch Meta or Google Ads targeting a set radius around each store
• Promote store-only offers or same-day pickup based on local stock
• Use event-based ads tied to local calendars or seasonal shopping moments
• Executing These Strategies Requires Seamless Inventory Management

Offering “Buy Online, Pick Up In Store” (BOPIS) or Click-and-Collect seems simple. But it only works successfully if the execution is solid. These services depend on accurate, real-time inventory. If a customer reserves something online and it’s out of stock when they show up, it damages their trust.

To avoid this, your systems need to stay connected. The website, POS, and inventory tools should update together so stock levels stay accurate. Store staff also need a clear process that lays out the rules for when to pull items, how to mark them as held, and when to alert the customer.

When everything runs smoothly, BOPIS gives customers speed and convenience. It also helps retailers save on shipping and bring more people into stores. But without strong inventory control, the experience falls apart fast.

Conclusion

O2O marketing has become a foundation for modern retail, not just a tactic. It’s about meeting customers in the moments that matter and guiding them from digital discovery to in-store action with purpose and precision. Done well, it builds loyalty, improves fulfillment, and turns every interaction into an opportunity for stronger engagement.

Achieving this requires more than creative campaigns. It demands an infrastructure where data, inventory, and customer engagement tools work as one. When systems are connected, strategies like BOPIS, click-and-collect, or geofencing offer consistent, measurable results.

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FAQs on O2O Marketing

1. What is O2O marketing in simple terms?

O2O (Online-to-Offline) marketing connects a brand’s digital touchpoints with its offline presence. It drives customers from online channels (like website, email, SMS, ads, or app) to take offline actions such as visiting a store, picking up a product, or attending an event. The goal is to create a seamless path between online engagement and offline purchase.

2. How is O2O marketing different from omnichannel marketing?

O2O marketing differs from omnichannel marketing in that it focuses on nudging customers to transition from an online medium to a store visit. Omnichannel marketing, on the other hand, aims to unify all customer touchpoints, both online and offline, into one cohesive journey.

3. Why is O2O marketing important for modern businesses?

O2O marketing is important for modern businesses because it improves inventory efficiency and builds stronger customer relationships. It reduces mismatches between what a customer sees online and what’s available in-store, while also helping brands collect first-party data that improves repeat purchases through targeted campaigns.

4. What are some examples of O2O marketing?

Popular examples of O2O marketing include Starbucks, which allows users to place orders online through its app, which can be delivered or collected via in-store pickup. Nike enables customers to reserve products online for in-store tryouts, and Sephora offers virtual try-on tools in its app to encourage in-store visits for product testing.

5. Which industries benefit the most from O2O marketing?

Industries like retail, e-commerce, food and beverage, real estate, and healthcare benefit significantly from O2O marketing. For example, retailers use it to sync online catalogues with in-store stock, restaurants use it for online reservations and takeout, and healthcare providers use it to convert online appointment bookings into in-person consultations.

6. How can small businesses adopt O2O marketing?

To adopt O2O marketing, small businesses can start by setting up a Google Business Profile so customers nearby can discover their store online, view open hours, and get directions. They can also add features like in-store pickup or local delivery through their website to turn online traffic into in-store visits and sales. Even something as simple as promoting store-only discounts via email or social media can help create that online-to-offline connection.

References:

[1] – Mckinsey.com – The end of shopping’s boundaries: Omnichannel personalization

[2] – Invoca.com – 37 Statistics Retail Marketers Need to Know in 2026

[3] – Electroiq.com – BOPIS Statistics By Sales, Grocery, Consumer Use and Preferences

[4] – Capitaloneshopping.com – Buy Online Pick Up In Store (BOPIS) Statistics

[5] – Capitaloneshopping.com – eCommerce Statistics

[6] – Celerant.com – What is BOPIS (Buy-Online, Pickup In-Store) in Retail?

[7] – Petco.com – Curbside Pickup

[8] – Verifiedmarketreports.com – Click and Collect Lockers Market Insights

[9] – Target.com.au – Click and Collect

[10] – Webfx.com – Geofencing Examples: 5 Examples of Geofencing Done Right

[11] – Spocket.co – The A-Z of e-commerce