Integrating Innovative Marketing with Digital Platforms in Physical Retail

Abstract

In the wake of digital transformation in retail, it is increasingly debated whether innovative marketing approaches can achieve sustainable consumer engagement through digital platforms in the same manner as traditional online commerce did. Based on these facts, the aim of this paper is to measure, compare, and evaluate the impact of digital marketing integration on physical retail performance and its potential impact in the field of omnichannel business models. The authors construct a propensity score matching framework using the parametric survival model estimation for describing the relationship between the Customer Retention Index and digital adoption factors. With allowance for the time-dependent effects of platform usage, models with fixed and random effects were built. In our study, we identified determinants related to consumer preferences, purchase frequency, retention duration, and sales conversion. Evidence suggests that digital platform adoption is likely to affect long-term survival of physical stores, but it is questionable whether rapid diffusion of subsequent technological innovation movements (e.g. towards AI-driven personalization) will equally benefit from integrated marketing tools. The paper finishes with managerial implications and policy recommendations for retail enterprises. Digital platforms as well as innovative marketing mechanisms change the rules of competition and the requirements of adaptation, resilience, and sustainability of retail markets. Future studies can empirically test the proposed linkages to reveal industry-, region-, and firm-specific interactions between processes of digital transformation and physical retail evolution.