Shopfloor FOCUS: EXPERIENTIAL RETAIL
31 May 2023
ertonline.co.uk
Categories with products that often require a high spend, like home appliances, benefit from a proper demonstration
The technical features of some products need to be explained in person, to aid the consumer’s purchase
34 An experience worth the effort?
The concept of experiential retail is a hugely important topic for independent retailers these days, but how do you create an interesting and interactive experience for shoppers, asks Rupert Cook from Gekko.
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 per cent against forecasts of 0.2 per cent 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 electrical retail world of considered purchases, 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 it 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 per cent of consumers would be more inclined to purchase a brand’s product or service after participating in a brand activation or experience, and 40 per cent felt they become more loyal to the brand.
And while luxury brands such as Louis Vuitton and Harrods have gone
to great lengths, and great expense to offer the experiential, 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 the company plans to trial a multi-sensory experience at its Horsham store. However, a retail experience can only be created if there are the staff available on the shop floor to help facilitate it – and these are not always to identify in John Lewis. 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 per cent want to be able to engage with knowledgeable shop staff. 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, but 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 60 per cent of shoppers cite a pleasant retail environment is an important factor to a great retail experience. For 47 per cent 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.
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