What’s in Store for the Customer Experience?
“I’ll try the red.” It’s a phrase heard in bars and restaurants across the globe. But in Nordstrom, at their tapas bar? It’s wine in a department store one week, and perhaps a pint or a flight at Bar Lamar in Whole Foods the next, because who could say no to a nice aperitif while picking up the weekly groceries?
Shoppers today are asking more and more frequently, “Is that a clothing store, or a coffee shop? A launderette, or a live music venue?” Category convergence is the defining trend of 21st century retail, and the lines between fashion, technology, art, hospitality and music are blurring more every day. Leading retailers have a new game plan for customer engagement: where you spend your time is where you spend your money.
Discounts, coupons, points and omnichannel are no longer impactful differentiators; they are basic customer expectations. Retailers are proving that memorable, shareable, face-to-face activities are the customer experiences that will win the hearts, minds and wallets of customers in a new era of shopping.
Outdoor-lovers can book a group fly-fishing trip at Orvis’ travel site, or gear up for an REI cycling class or hiking adventure. Bing’s Surf Shop in Encinitas is making waves with its See a Movie Night and Art Show, and Bass Pro Shops one-ups them with an in-store archery range, Dutch oven cooking classes and bowling alleys, where full-size bowling eyeballs are returned through gagging shark and alligator mouths.
Retailers need to embody an ever-changing, fresh, and maybe a touch newsworthy approach to in-store innovation. Just as H&M and Zara found success from quickly changing inventory, retailers will be looking for the same victories by changing their inventory of selfie-worthy calendar stuffers.
In recent quarters, malls are rebounding as shoppers scout meccas of entertainment, including fashion shows, celebrity appearances and hackathons. What we are seeing is a return to the ancient Greek Agora concept. Shopping districts are transforming into hubs of leisure, connection, food and fun.
Consumers, drowning in out-of-context e-commerce worlds of headless models silhouetted on white backgrounds and self-service, thirst for experiences over things (true customer experience). The new face of loyalty is human connection. A Proper Insights and Analytics study found that face-to-face communication is now the leading trigger of online searches (45%).
On a Friday afternoon in San Francisco’s packed Capital One 360 Café, techies collaborate on how to digitally transform customer experience from products, promotions, packing, and paying - to people.
They start with a sea of Post-Its on what people like to do when they’re together, when they’re not shopping. “Merchantainment.” “Retailtainment.” “Convergence.” It’s baaaaack. This time it’s here to stay.