The Future of Retail
Designing The New Shopper Experience
How do we build a modern and engaging shopper experience strategy? How do we build value, drive sales, and boost loyalty through shopper experiences?
We attended CEDIM’S innovation series, a conference with Tony Bynum, Director of innovation and Strategy of RTC, about 14 strategies on retail innovation, and we found out that the answer is simple, in a way, we need to enhance the purchase path, build better customer relationships and create valuable communities. But how? We took the task of taking notes on all of Tony’s words and we made a list, with videos and examples included, on what we found most relevant. Hopefully we can answer your questions, the same ones we asked ourselves before we met Tony.
It’s time to reinvent retail by creating niche experiences instead of mass experiences for our customers.
In the words of Tony Bynum think of a toolbox with drawers, each drawer represents a tool. Here’s a list of the tools:
Relationships and connections
These help us find value with our consumer, creating engaging communities. Take, State Farm as an example, the company ranked 37th on the Fortune 500 list in 2011, and is the leading insurance company in North America. Over the past few years, State Farm’s core offerings have faced various challenges. To address a changing marketplace and build stronger relationships with Millennials, State Farm engaged IDEO in a four-year, radically collaborative relationship that resulted in the design and launch of Next Door, a community-focused learning center that offers free, no-pressure financial coaching to consumers in the Chicago area.
Mediate value and exchange
This is where the retailer steps between the product and consumer for example, Safeway’s digital coupon strategy Just for U or Nike’s vending machines that trade free swag for Fuelband points, I.E these brands use points as a form of currency, and they connect consumers with the whole brand experience.
Orchestrate solutions
Anthropologie, changes its thematic props by curating the store for specific seasons. Its a way for the brand to give you context about all its products.
Showcase legacy and heritage
With over 100 years of history and a shoe known around the world, it may seem surprising that the Converse store that opened in NYC is only the second physical shop for the iconic brand. Following the success of its first location on Boston's Newbury Street, Converse is taking their wholesale and online empire to SoHo, with a sizable shop dedicated both to the city itself and Converse's athletic heritage all with a punk rock twist.
Create individual experiences
Like Nudie Jeans denim who offers free repairs on all their jeans in their Nudie Jeans repair shop in London.
Facilitate experiential trial & sampling
Casper, mattress retailer, put up a nap experience on wheels and made travel it to different cities. Helping customers swing by to nod off and experience the Casper mattress, sheets, and pillows firsthand.
Invite multi sensory engagement
Williams-Sonoma, offers free cooking classes in store, the brand’s purpose with this is not about selling, but about celebrating cooking and food at its core.
Develop functional & spatial equities
Eataly Chicago mixes restaurant, fresh produce and houseware all in one roof. This food mall offers activities that are seamlessly blended together.
Cohabitate Complementary Brands
The Nordstrom + Topshop alliance creates a new setting for both brands, as well as it does with Tesla in its men’s department. Did you imagine that one day you would have a car displayed in a department store?
Make decisions easier
Leverage third party partnerships, like retailer C&A did in Brazil by helping people who need help making choices with real time feedback via Facebook.
Use data to improve experience
Kroger Marketplace’s infrared cameras monitor the activity of the store, and based on the number of shoppers they detect they open or shut down lines. Use data to better the experience.
Ease purchase
Hointer helps you filter through products before trying them on with an app, completely changing the customer experience.
The impact of technology in retail
We’ve witnessed over the past years a radical shift in shopper behavior fueled by impacts on mobile and social technology. With infinite information available at the tap of a screen, brands selling through Facebook, Snapchat and Instagram we are flooded with more options on what to buy than ever before.
These emerging technologies require companies to look beyond traditional systems and devices and focus on the customized and intuitive customer experience. Regardless of channel or platform companies must capture the hearts and minds of today’s shopper.
