Attracting and Retaining Customers with Experiential Retail

While the doom of the high street has been prophesized for many years now, there is some cause for optimism – even in the wake of the COVID-19 crisis.

While it’s true that footfall in retail stores has fallen since restrictions were lifted, indicating that many customers are still apprehensive about returning to public places, these figures only provide a portion of the full picture.

Research by the Wall Street Journal suggests that sales in stores and restaurants increased during June of 2021, while it is product categories such as building materials/DIY, sporting goods, and furniture which have seen significant downturns.

All three of those categories performed well during lockdown restrictions as people sought to stay fit or redecorate while stuck at home, but now things are opening up once again, they are on the prowl for more explorative retail.

Experiential Retail

We’ve known for some time now, that younger people are more interested in spending their money on experiences than products. However, rather than being a barrier to retail shopping, this can be viewed as an opportunity.

By kitting stores out with digital technology and omnichannel features, retailers can transform their physical locations into more than simply somewhere to shop. If a store gains a reputation for seamlessly merging technology driven experiences with retail shopping, it stands a far greater chance of attracting, not just shoppers who are looking for those products specifically, but also those with a healthy dose of curiosity.

Experiential retail can also serve as a counterbalance to the domination of ecommerce. Because online stores are so much more convenient and often cheaper than a physical store, shopping in person is no longer viewed as an essential part of life. However, if a store is able to provide experience which a customer is simply not able to get as part of the ecommerce shopping process, that creates a reason in the mind of the shopper to choose brick-and-mortar over digital.

"Physical stores will likely play a vital role in maximizing sales after the crisis, and store associates are likely your best assets," reports Forbes. "Retailers that have well-trained advisors and true brand advocates will be ready to meet built-up customer expectations. In the luxury sector, in particular, we're seeing brands already capitalizing on personalization and localization and going as far as preparing store employees to offer concierge-level service."

Brands Getting it Right

Experiential retail is not a new concept of course, and many brands out there are already augmenting their physical shopping experience with additional features designed to entice customers through their doors.

For example, there is the Nike Rise experimental concept store in Guangzhou, China. Using the Nike app on their smartphone, visitors to the store can book exclusive events and fitness classes, as well as customizing products to match their personal tastes. Store associates are equipped with Nike Fit – a technology which can help shoppers find the best fitting shoe using a combination of computer vision, data science, machine learning, artificial intelligence, and recommendation algorithms.

And, of course, all these features collect data which then feeds back into Nike’s product recommendation features to ensure the items it suggests are of the maximum relevance to the customer.

Innovative bedding brand, Casper has taken experiential retail to a whole new level with its Sleep Shops. Customers can book a 30-minute private Nap Appointment where they can visit a Casper sleep store and literally take a nap on one of the brand’s famous mattresses – together with its proprietary pillows and sheets.

The challenges of being a provider of bedding which only served people online obviously wasn’t lost on Casper, so it decided to not only open physical stores, but go one step further. A step which is completely congruous with its stated aim of helping people its customers sleep better.

And the list goes on! Whether its Vans’ Los Angeles store which features an art gallery, skate shop, and studio which offers free art workshops, or Apple’s famous store experience signified by knowledgeable sales associates, in-store classes, and exclusive events, brands all over the world are discovering how to draw customer into their stores with experiential retail innovations.

Final Thoughts

Experiential retail, despite not being a new concept, is going to gain in relevance now we are tentatively coming out the other side of the COVID-19 crisis.

Customers have been stuck at home for too long and while some may be apprehensive about venturing out, retailers which can offer more than just a basic shopping experience are going to be the ones which have the greatest chance of drawing them in.

Experiential retail is set to be a hot topic at Future Stores Seattle 2022, taking place in July at The Sheraton, Seattle.

Download the agenda today for more information and insights.