Brand Experience > Experiential Retail

And a note on why I think consumers are bluffing

Consumers are bluffing, but not intentionally

There was a lot of buzz from many of my DTC eCom friends a few weeks ago when survey results were published revealing that 40% of consumers intend to shop in stores the same amount or less after receiving a vaccination. This was good news for DNBs that have zero or very few stores and bad news for any brand with a substantial physical retail footprint. 

While it is certainly true that many consumers have formed new habits over the last year, there is something very important to consider about self-predictive surveys—mainly that humans have a history of being terrible predictors of their future behavior. As one study put it: 

“Even when they acknowledge that situational factors can affect the likelihood of carrying out an intended behavior, people do not adequately moderate the weight placed on their current intentions when predicting their future behavior.”

Basically, that’s psychology speak for: humans forget to consider how a change in circumstances will change our behavior.

So, does that mean physical retail has nothing to worry about? Not exactly. Brands that believe a physical presence is a significant driver of future growth still need to prepare to meet consumers’ expectations when they do return to stores—which happens to be the topic of this week’s article. 

What it does mean is that just because a consumer says they’re going to do something, doesn’t mean they actually will. 

ICYMI

I feel like it’s Groundhog’s Day but DTC Homegoods continue to dominate as a category. This week, Caraway announced yet another partnership relationship to sell its high-end cookware in Crate and Barrel stores. I gave my thoughts to Modern Retail here.

In non-homegoods news, millennials are diversifying their investments outside of the asset classes of their parents—notably into art and other collectibles. Platforms like Artsy and Rally, among others, are allowing a new generation of investors to diversify beyond the stock market and homeownership for investments. You can read more about my thoughts on that here.

Brand Experience > Experiential Retail

I’ll be the first to admit, pre-pandemic experiential retail was getting a little out of control. Either every brand was adding coffee counters and tea rooms to their stores, or they were offering services with no real tie-in to the brand and (most importantly) no real value to the customer. 

The problem with the retail-as-spectacle trend is that brands forget to give customers what they are really craving—interactions with products that they can’t get in the digital world. A thoughtful brand experience leads to long-term brand loyalty. In order to deliver, a brand must first determine its retail value proposition. Here’s how.

It all starts with the mission

Your brand already has a stated mission through which it operates and makes decisions. As the physical representation of your brand, the stores should represent this mission as well. Often times, brands make the mistake of making the mission of a store to acquire new customers or to drive revenue. While those are important goals, the brand’s greater mission must be reflected in the store if it is to truly add value for the customer. 

Take Nike. Its stated mission is to “Bring inspiration and innovation to every athlete in the world.” Imagine if its stores were just racks of leggings, shorts, and sports bras with no brand personality. There would certainly be a disconnect from the store environment and the compelling images and copy we see in its marketing materials. Because Nike’s stores are designed with the mission in mind, the brand offers exactly what the customer would expect of it: an innovative and inspiring in-store experience.

Give the people what they want

Use your existing customer feedback to determine the critical questions and problems you must address in your retail store environment. Look at the top questions customers ask prior to purchasing a product and the top reasons for returning a product. These two categories become what you must optimize for in your retail store. 

For example, if you sell furniture it’s likely that your most frequent customer questions have to do with the physical aspects of the furniture: how it looks in a room, how firm or soft it is, and if it will fit through the doorway (this is a very real problem). Naturally, your retail store will want to address all of these in the experience. The store can show furniture arranged in rooms, customers will be able to sit on or touch it, and sales teams should be trained on how to measure the product to determine if it will fit through a doorway or narrow hallway.

People make all the difference

I would be remiss not to mention the most impactful part of the retail value proposition equation—human to human interaction. As I’ve written many times before, the people that work in your stores are passionate ambassadors of the brand. Training these ambassadors not only in product knowledge but the softer skills required to deliver a truly on-brand experience is an important component of the retail value proposition. 

You can only do so much with design and signage to educate your customers about the properties of your products or to tell the story of your brand, but retail associates can hold all of this information and present it to the customer at just the right time. 

According to a recent study, 84% of customers go out of their way to spend more money with a brand that provides great experiences. Not just spend more money in the moment, but go out of their way to continue to buy from brands that treat them well. More than great store design and well-shot imagery, the customer service component is worth your attention and effort.

PIAT (Put It All Together)

Now that you’ve designed your store with the mission in mind, determined what your customers want from the store and established the experience through a mix of visual and human interaction, you’re ready to put together your Retail Value Proposition. The formula goes a little something like this:

[Your Brand’s] stores will [verb(s)—those actions your customers are asking for] its customers to [brand goal or value].

It takes a minute to get the hang of it, but let’s try one together. Using a furniture company as an example.

New Furniture Co.’s store will educate and inspire its customers to love the space they live in every day.

In this instance, New Furniture Co. educates its customers by encouraging them to test and try its furniture and inspires its customers by helping them design their space.

If you’d like to explore building out your brand’s retail value proposition, I’ve developed a workshop just for that purpose! Get in touch.

I create exceptional retail experiences and scalable practices for the next era of consumer brands. Want to explore how we can work together? Schedule a time to chat.