Discovering synergies and conflicts in online and offline in-store engagement

Abstract

Brands expect that greater physical in-store engagement will reduce visits to competitors. However, if customers are simultaneously engaged virtually, where the visible enthusiasm on social media platforms can also proliferate competitor visits, the combined effect of dual engagement becomes more difficult to predict. Do online and offline indicators of engagement with the same physical space, at the same time, act (i) in synergy or conflict to (ii) improve or diminish a brand’s competitive position? The emergence of simultaneous interactive platforms demands a broader assessment of the impact of multi-channel engagement. The current paper illustrates an observational study integrating six databases drawing from Twitter, Yelp, GPS movement data, Census, US business database from the Restaurant Industry, and Brand Websites to demonstrate how engagement metrics derived from (i) physical movement inside 773 US store locations and (ii) social media activity inside the store interact to affect future customer visits to competitor stores. We find that cannibalization is more likely in Dine-In stores, whereas convergence more likely among Drive-Thru stores. The model presented in this paper can be used to test the validity of engagement measures, supplement primary research to moderate store operations, as well as discover the effectiveness of different store formats.