Experiential retail
A few years back i had a significant birthday and took a trip overseas (oh to travel again) to the USA and New York was on the itinerary. At the time of the trip i was an avid crossfitter wearing Nike's and my plan was to go to the experiential Nike store on 5th Avenue and purchase a pair of crossfit sneakers. I was a bit excited by the thought and wanted to say to friends i got my sneakers from Nike New York, but in the end the experience didn’t match my expectation.
Yes, when I walked in into the experiential Nike store all of my senses were engaged but when it came to getting my sneakers they had limited stock and only the basic styles at a time when you could personalise your crossfit sneakers on their website. Whilst i was trying on the basic style, I started thinking through how i could buy something different online while i was in the USA but i wasn’t anywhere long enough to have them posted and i was on holiday, so i didn’t want the stress. I ended up buying a basic pair which i could have purchased in Australia on my couch. Boo!
What does experiential retail do differently than traditional retail?
The Nike store in New York is a good example of experiential retail, but what does the research say about experiential retail spaces. The space should:
Creates an immersive and shareable experience
Prioritises customer engagement - not revenue
Stimulates customer’s senses
Defies customer expectations
Leverages in-store events and services
Addresses customers needs
What went right for me at the Nike store?
From a customers perspective i can still vividly remember the experience of walking into the Nike store. I remember the sounds, colours and layout. I still remember what i purchased and how excited i was and well I’m sharing this with you now so you could say the experience connected with me on some level.
What opportunity does the Nike store have to improve the experience?
From a customers perspective the store missed two things:
Addresses customers needs. New York is a hub of international travelers, Nike could have identified the different needs of their customer-base and hyper-personalised the experience. Research has shown that organisations that hyper-personalise experience increased revenue.
Defies customer expectations. My need was to purchase new crossfit sneakers but my expectation was to purchase crossfit sneakers that you can’t get anywhere else but the Nike New York store. The opportunity to deliver this value is ripe for Nike to invest in for revenue growth.
With many businesses questioning the need for bricks and mortar retail where do you see this in the future?
References
Retailers as ‘experience designers’: Brian Solis on shopping in 2030 (McKinsey)
The future of retail banking The hyper-personalisation imperative (Deloitte)
Rewriting the rules in retail banking (McKinsey)
The Future of Retail Bank Design
What is Experiential Retail? An Inside Look
financial SERVICES: 18 DESIGN TRENDS FOR RETAIL BRANCHES
The New Retail Bank Branch: Innovation or Merely Renovation?