Melissa Gonzalez of MG2 & The Lionesque Group On How To Create A Retail Experience That Keeps People Coming Back For More
Even if you’re a product company, you must be a service company too. That’s number one. I think one good example of a brand delivering a holistic approach and serving the customer is Ulta. If you go to an Ulta store, there’s a beauty advisor on hand to answer your questions or assist you with your needs. The store offers beauty services for hair, skin, makeup, lashes, brows, etc., so for customers, Ulta is now a one-stop-shop, where they can meet with an expert, get styled, and then have product at their fingertips.
As part of my series about “How To Create A Retail Experience That Keeps People Coming Back For More”, I had the pleasure of interviewing Melissa Gonzalez.
Principal at MG2, an international architecture and design firm, and founder of the award-winning strategy and experiential design studio The Lionesque Group, Melissa Gonzalez pioneered the integration of physical environments and cutting-edge technologies. She is the author of The Pop-up Paradigm: How Brands Build Human Connections in a Digital Age and has produced more than 200 brick-and-mortar experiences across the country for both DTC (direct-to-consumer) start-ups and established name brands. Her projects, including work for Tempo, Nordstrom, and Burrow, are dedicated to creating immersive brand moments in a way that drives ROI and helps clients convey compelling stories to their audience. Melissa surveys thousands of consumers quarterly to investigate trends and ensure she understands customers’ needs, wants, expectations, and pain points. In 2022, she was recognized by WWD as one of the “25 Most Influential Women Leaders.” She has been quoted in The New York Times, Morning Brew, Forbes, Glossy, and The Wall Street Journal.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?
After several years on Wall Street, I had the opportunity to lean into my passion for storytelling and building connections in physical retail environments; I created a street-level boutique in a mid-town Manhattan hotel. It was a perfect marriage of my creative sensibility and business acumen. After that first project, I founded The Lionesque Group, specializing in experiential retail design — especially pop-up experiences. In 2019, The Lionesque Group merged with the international architecture firm MG2, known for its work with leading retail brands such as Target, Anthropologie, and Tommy Bahama. Together, we offer a more extensive, scalable, and complementary array of services to our clients.
Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lessons or ‘takeaways’ you learned from that?
One mistake many entrepreneurs make early on is wearing too many hats. When I was first starting out, I did it all. That sometimes included being a model for my clients — and in 2009 that meant “walking the runway” of Lexington Avenue with a group of real models as we promoted the launch of a designer’s new pop-up store. It was fun at the time, but in retrospect, I am no model! The lesson — everything takes headspace and time. When you are growing a business, do the work that has the highest value and build a team around you with other core qualities.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story?
Stacy Berns is that person. Together with Stacy Widlitz and Mary Ann Domuracki, she founded The DealmakeHers, a powerhouse network of women who are shaping the way consumers shop and the way brands and retailers are proactively responding to the ever-changing consumer. Stacy is brilliant at making connections and has built a tight-knit community of retail influencers who have come together to support one another. I am grateful to her for bringing me into this group.
Is there a particular book, podcast, or film that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
I love the podcast “How I Built This” with Guy Raz, and I know I’m not alone. They’ve expanded to two shows a week!
I like that “How I Built This” focuses on the founders’ journeys, the nitty-gritty of how they got where they are, and the lessons learned along the way. It’s always surprising. And it’s fascinating to hear about a business’s challenges — and how they are overcome. I always learn so much.
What do you think makes your company stand out? Can you share a story?
What is intriguing about MG2 is how multi-faceted we are. We can design and produce a small pop-up kiosk, a specialty store, or a 100,000-square-foot retail space. We can design a new store, renovate an old one, create a once-in-a-lifetime experience, or roll out 100 similar stores. We have broad understanding and deep expertise in retail strategy, architecture, and design.
Right now, for example, our designers, architects, and project managers are working on a large-scale pop-up in NYC, a specialty retail store in Minneapolis, one in Chicago, and another in Baltimore, and large-format retail spaces in Burbank and Ann Arbor.
Which tips would you recommend to your colleagues in your industry to help them to thrive and not “burn out”?
I think to thrive, you need to really understand your business and what makes you different — your unique value proposition. Then focus your time, attention, and resources on that. If you’re always trying to keep up with the latest trends and what your competition is doing, you can become anxious, stressed, and burn out. It’s easy to get seduced by what everybody else is doing. But that doesn’t always mean it’s appropriate for your customer or your business.
I’m not suggesting you put your head in the sand. You need to be aware of what’s happening in the industry, but you also need to step back and make sure you’re doing what’s right for your brand. Be purposeful in where you spend your energy and how you invest in your business.
Ok super. Now let’s jump to the main questions of our interview. The so-called “Retail Apocalypse” has been going on for about a decade. The Pandemic only made things much worse for retailers in general. While many retailers are struggling, some retailers, like Lululemon, Kroger, and Costco are quite profitable. Can you share a few lessons that other retailers can learn from the success of profitable retailers?
I think the retailers that are most successful are those that keep the customer at the heart of their decisions. I say this all the time — “Even if you’re a product company, we’re all service companies.”
I also think that the successful retailers have been thinking omnichannel a lot earlier than most. And it’s not just because technology is a leading change agent in retail. It’s because it can enhance the customer experience.
In addition, over the last few years, successful retailers have discovered that sales associates are their most important touchpoint in the store. They bridge the gap between the information that lives digitally — path to purchase, customer profiles, etc. — and the customer.
Amazon is going to exert pressure on all of retail for the foreseeable future. New Direct-To-Consumer companies based in China are emerging that offer prices that are much cheaper than US and European brands. What would you advise retail companies and eCommerce companies, for them to be successful in the face of such strong competition?
I would advise them to focus on their value proposition. Consumers may be becoming more price-sensitive, but they are not looking for “cheap,” they are looking for “value.” And there is a difference. Consumers will pay more for a product or service if they feel they are getting value out of it.
How might you layer in value? It could be packaging that’s so beautiful, you’d think it was gift-wrapped. It could be customer service that goes the extra mile. It could be an in-store class that instills a sense of community. How are you ensuring that your customer feels great shopping with you?
I also think there’s an increasing expectation from consumers for brands and retailers to stand for something more than just the products they sell. So, what is that? For many retailers today, it‘s sustainable practices. That sense of purpose helps build loyalty among consumers.
What are the most common mistakes you have seen CEOs & founders make when they start a retail business? What can be done to avoid those errors?
I think the most common mistake CEOs and founders make when they start a retail business is trying to be all things to all people. The key to avoiding this is to have a clear sense of your unique value proposition and your core attributes. Let that clarity be your north star and your filter as you make decisions and launch new products and campaigns.
This might be intuitive, but I think it’s helpful to specifically articulate it. In your words, can you share a few reasons why great customer service and a great customer experience is essential for success in business in general and for retail in particular?
Let me use Maya Angelou’s words — “I’ve learned people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
How are you making your customers feel? Do they feel special? Do they feel heard? Do they feel served? It’s human nature to want to feel seen and be understood. Great customer service does that.
We have all had times either in a store, or online, when we’ve had a very poor experience as a customer or user. If the importance of a good customer experience is so intuitive, and apparent, where is the disconnect? How is it that so many companies do not make this a priority?
Customer service is a simple concept, but it’s not an easy one to pull off well. Not everyone is a born salesperson, and even those who are must be trained and given the power to do the right thing for the customer. Over the last 20+ years, legacy brands have had to adapt to the new world of e-commerce, many fighting for survival. Their attention, energy, and investment haven’t always been on customer service.
Can you share with us a story from your experience about a customer who was “Wowed” by the experience you provided?
We were hired by Victoria’s Secret as a full-service partner (from strategy to design to build management) on a weeklong Mother’s Day pop-up on the High Line in New York City to promote their Bombshell fragrance collection. It was an immersive retail experience filled with flowers and a larger-than-life-size perfume bottle tunnel that visitors could walk through and interact with. Thousands of people of all ages came to take part in the experience — and take lots of photos! We even saw four proposals of marriage.
Did that “Wow! Experience” have any long term ripple effects? Can you share the story?
We expect that there will be long-term ripple effects, but we’re bound to secrecy!
A fantastic retail experience isn’t just one specific thing. It can be a composite of many different subtle elements fused together. Can you help us break down and identify the different ingredients that come together to create a “fantastic retail experience”?
A successful retail experience must be built into the customer journey. It must be consumer-focused with moments of surprise and delight. It flourishes with an educated and empowered sales team. And the connection between the online and in-store experience must be seamless.
Ok super. Here is the main question of our interview. Based on your experience and success, what are the five most important things one should know in order to create a fantastic retail experience that keeps bringing customers back for more? Please share a story or an example for each.
I believe that to create a fantastic retail experience you must do the following: 1) Lean into service, 2) Provide personalization, 3) Create a sensorial experience, 4) Make it omnichannel, and 5) Empower your customer.
Even if you’re a product company, you must be a service company too. That’s number one. I think one good example of a brand delivering a holistic approach and serving the customer is Ulta. If you go to an Ulta store, there’s a beauty advisor on hand to answer your questions or assist you with your needs. The store offers beauty services for hair, skin, makeup, lashes, brows, etc., so for customers, Ulta is now a one-stop-shop, where they can meet with an expert, get styled, and then have product at their fingertips.
So to repeat, because it is so important, even if you’re a product company, always be in service to your customers.
The second most important thing is to provide opportunities for personalization. The more personalized you make your brand, the more human you make it. And everybody these days is searching for that human connection.
I think that Nike continues to push the envelope in this aspect, especially in how they harness their active in-app audience. Nike Live is one of the most personally relevant experiences out there. You can personalize your shoes and create personalized workouts. Nike has created a way to connect with every individual in a very personal way. When you think about a fantastic retail experience, this is it.
Another aspect to focus on, number three, is the opportunity for a sensorial experience. I think people more and more want an excuse to leave the house — but that reason needs to be exciting, compelling. What sensorial elements are you using? Sight, sound, smell, touch, taste, or all of the above?
The Victoria’s Secret pop-up I mentioned earlier was a full brand immersion with the sight and scent of thousands of pink roses and peonies. This sensorial messaging brought the customer deeper into the value proposition. It was an immersive world that they had the opportunity to be a part of.
Being purposeful about omnichannel is the fourth. We have had this conversation about omnichannel for a very long time, but even so, I think we are just touching the tip of the iceberg in terms of what’s possible.
Consider augmented reality, endless aisle, try-before-buy technology, QR codes unlocking digital layers of information. Pre-pandemic, there was a lot of hesitation about whether these new technologies would be embraced. But that has changed. Based on our customer survey results, for example, endless aisle — the opportunity to buy products that are not at the store from a sales associate in the store — has been embraced by the consumer.
Technology companies like Crave Retail and Fit: Match are two companies that have set out to solve the challenges of fit and the fitting room experience. I think we can all agree that when you think of the in-store environment, the fitting room experience has been behind the times.
With Crave Retail’s fitting room technology, shoppers can request other color options, size options, or even place an order without ever leaving the fitting room. The technology lets them make choices in the moment of engagement and discovery. And this is only one example of the many omnichannel experiences in our future.
Finally, I think the message of empowerment is really important for a fantastic retail experience. It’s number five.
Consumers today want to support a brand that has meaning. You have the opportunity to be an empowerment company by leaning into purpose. I see this quite a bit now in regard to sustainability. Think about Levi’s Haus or Target Open House or Ikea’s Circular Hub. These brands are not just saying that they believe in sustainability but are empowering their consumers to be more sustainable. Consumers today want brands to be responsible and stand for a greater purpose.
Thank you for all of that. We are nearly done. Here is our final ‘meaty’ question. You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
What if we all had a life mentor? What if we were somehow paired through DNA or personality assessments with a trusted guide who understood our motivations, desires, and tendencies? If we had a life coach who helped us live our best life at every stage? Wouldn’t that be amazing?
How can our readers further follow your work?
https://twitter.com/lionesquegroup
https://www.instagram.com/lionesquegroup/
https://www.linkedin.com/company/the-lionesque-group/
This was very inspiring. Thank you so much for joining us!
