When selling equals entertaining | Commerce International

Photo : D.R.

Commerce International: What are the expectations of today’s consumers when it comes to shopping?
Bernd Schmitt: “Shopping today is much more than pulling the merchandise off
the shelf. Of course, there are still stores where you can just do that – “purchasing warehouses” with price tags next to products and no atmosphere at all. But new
experiential shopping places are emerging everywhere. In such modern shopping
environments, consumers get an experience. And that’s what customers increasingly expect. They want to be entertained when they shop, to be informed and be treated in special ways. That’s much more than just selling goods in a store.”

What are the consequences for brands as far as their stores go?
B. S.: “Stores must convey the brand image, the brand personality, the brand
values. Take the Apple Stores: it’s not just a place for selling computers, MP3 players and mobile phones. The store expresses the creativity of Apple; the focus on the customer, the cool and hip electronics lifestyle the brand stands for. It’s an exciting time to be in retailing and in branding – because the two are finally coming together. And this is the new standard – that even a recession will not change. Consumers will want a good price, but also an experience from a brand that they are attracted to.”

What should brands consider when setting up their stores?
B. S.: “There are three key things to consider. First, how can the store be functional for consumers? How can they easily find the merchandise; try it in the store; get information and help, and pay for the goods? These are the basics. Then, how can we make them feel good in the store and do something special for the consumer; that is, how can we create the right experience? And third, how can we make sure the experience continues when they leave the store. This requires experience integration across other touch-points (e.g. service call centres, web sites). I have worked on a major mobile phone brand and its stores. There, you face all these issues. Experiential mobile phone stores go beyond showing the phones and service plans. They are high tech, yet customer friendly and give the customer opportunities to explore a modern technology world and lifestyle. And ideally that experience continues after the purchase.”

What can we expect from these investments in experience?
B. S.: “When you invest in experience, you often can drive up the price point. You also create a bond and loyalty – customers will come back. Finally, you get more attention in the marketplace; customers – and journalists – talk about your brand. These effects have been shown in research that I have conducted and reported in my books, as well as in research by others. It’s really worth investing in experience. Nowadays, there are also models to calculate precisely the return on investment in experience.”

How can we continue to create surprise in terms of experience?
B. S.: “It’s not easy. And expectations can go up. What was surprising yesterday is expected today. But a customer-focused brand will not have any problems coming with new ideas. Look at the Abercrombie brand, one of the hottest casual retailers these days. They have a “club” concept for their stores – you cannot see what’s inside through the window; in the store, loud music blasts and products are set out in very dramatic displays. Very original! Real “big think” – as I call it in my new book. By launching innovation programs – marketing innovation, not only product innovation – and by talking to customers, it is not that hard to come up with new, bold ideas.”