For consumers, a trip to your store has to be worth the effort, time and expenditure, offering an experience that surpasses the convenience of simply buying online from the comfort of home. As a retailer how far do you go and how much do you invest to meet these needs, especially considering the current economic conditions.
It’s worth noting that from a macro perspective, things are not all doom and gloom. People are shopping and spending. The latest ONS data showed positive results for retail with a surprisingly large rise in retail sales for the month of February, the result marking the second consecutive month of industry growth. Volume sales were up by 1.2% against forecasts of 0.2% and once again shows the resilience of the UK consumers against an unrelenting cost of living crisis.
Hopefully this positivity isn’t just a blip, but even so, it’s fortunate that in the ERT world of ‘considered purchases’ – purchases made with significant financial or emotional thought – there is simply no match for the timeless ability of an in-store experience to engage all the senses and stimulate sales. This is particularly the case for consumer electronics and home appliances – categories with products that often require a high spend and technical questions that need to be answered as well as having to fit in with our homes and lifestyles.
True experiential retail as a strategy goes further than this though and could be defined as an approach where physical retail spaces offer additional experiences beyond browsing or buying products. It directly engages customers, inviting them to experience your brand live and in-person. Pop-up events, masterclasses, brand takeovers and hosting community events are all examples of experiential retail that may or may not work for you.
What is undeniable though is that customers now expect more. Research in the US found that 91% of consumers would be more inclined to purchase a brand’s product or service after participating in a brand activation or experience, and 40% felt they become more loyal to the brand.
Retailers and brands have gone to great lengths to meet these expectations. Blowing the budget earlier in the year was luxury brand Louis Vuitton who transformed stores across the world for the launch of its collection with artist Yayoi Kusama. Stores such as Harrods were redecorated with Kusama’s signature polka-dots and life-like animatronics of Kusama painting in the windows of the stores!
On a slightly less grand scale, ERT has reported several times on how John Lewis has refurbished several stores to create “inspiring spaces to showcase products, experiences and services”. And this year they plan to trial a multi-sensory experience at its Horsham store. This is all great and hopefully it helps strengthen their position on the high street. However, what, in my opinion, can potentially detract from the desired effect is that it is often difficult finding a member of staff to talk to, something made all the more challenging with the no uniform policy.
People really do count when it comes to the overall retail experience. After all, this is a trump card that physical retail has over online channels. Indeed, Gekko’s latest research shows that 42% want to be able to engage with knowledgeable shop staff. It’s therefore surprising to see great looking and no doubt expensive Meta Quest virtual reality demo gaming areas in stores that are cordoned off from shoppers because there is no staff presence. If ever there was a category that needs to be experienced by shoppers before they buy into it, it’s VR.
So how can all this be applied to independent retailers selling consumer electronics and domestic appliances? Unforgettable, mind-blowing experiences that go viral on TikTok are generally going to be the preserve of big city flagship stores like Harrods. What is a realistic expectation is to play to your strengths both as an individual business and a physical retailer. As highlighted above, your staff are vital. Good old fashioned customer service is still fundamental to the retail experience. The research also showed that for 60% of shoppers cite a pleasant retail environment is an important factor to a great retail experience. For 47% of those surveyed, the top reason for in person shopping versus online is the ability to try before you buy.
Most of you will already be offering this kind of experience for your customers but take the time to regularly reassess how you’re meeting these shopper desires. Moving with the times is essential though. What has worked in the past with your older customers won’t necessarily appeal to younger generations who have different expectations. But whoever the customer, the experience they receive in your store must be worth their while.
To read the full article by Rupert Cook, Marketing Director please visit ERT Online
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