Experiential retail is an immersive experience offered by traditional retailers to shoppers. An example of this includes pop-up stores, in-store masterclasses, and hosting community events.
What is Experiential Retail?
Experiential retail is the process of creating unforgettable shopping experiences for shoppers. It directly engages customers and invites them to experience your brand in person and face-to-face.
As customer selectivity regarding the brands they shop from increases, the in-store shopping experience must stand out from the crowd. However, the shopping experience should not merely be a marketing gimmick that completely overlooks the commercial aspect. After all, shoppers come to discover and purchase products.
According to a study conducted by Forrester Consulting on behalf of Shopify, more than two-thirds of consumers (35%) plan to interact with brands through retail experiences in the coming year. So it’s no surprise that 40% of brands said that providing experiential retail would be a top priority for them in the coming year.
Benefits of Experiential Retail
Three out of four brand marketers rate experiential marketing as “very important or somewhat important,” according to a study from Crossmark. Some countries are seeing the positive impact of experiential retail faster than others. In China, for example, 78% of department stores have added experiential elements to their stores.
Let’s take a look at why experiential retail is topping the priority list for many retailers. Meeting Experience-Shopping Consumers
The commercial landscape is constantly changing. Today’s customers are no longer just looking to buy products; they are searching for memories. They are willing to spend more money on those memories: 76% of shoppers prefer to spend money on experiences rather than products.
Experiential retail combines products and experiences for the best of both worlds. For example, a hair care store with a barbershop provides an experience that young audiences want to spend money on, while products are naturally available for purchase.
Experiential Retail Ideas to Try
Are you ready to dive into experiential retail? Here are five ideas you can try even if you don’t currently have a store.
Pop-Up Trucks
Pop-up stores have become popular in recent years, but small retailers may find it challenging to launch a pop-up shop on a budget. Instead, you can launch a pop-up truck. Agencies like Pop-Up Mob specialize in creating customized temporary experiences for small retail brands.
Community-Focused Events
Many retailers organize events for local community members. You can take this idea a step further and provide a commercial space for individuals who may benefit from a gathering place. This is exactly what accessory and camera bag company Peak Design did when it made its flagship location in San Francisco available as a co-working space for artists.
In-Store Collaboration Initiatives
For some brands, in-store collaboration initiatives can become experiential. This is the approach taken by luxury accessory brand Senreve when it hosted a retail event in its San Francisco store in partnership with luxury jewelry maker Aurate.
Hands-On Workshops
You can start small by hosting in-person events at your store location. For example, you could teach customers how to use your products or provide a workshop focusing on a skill related to your category.
Examples of Experiential Retail
Let’s take a look at six standout brands excelling in experiential retail and understand what makes their experiences effective in driving foot traffic, increasing sales, and building long-term loyalty.
Future
Experiential Retail
The future of retail is hard to predict. However, trends and changes in consumer behavior indicate that experiential retail is here to stay, albeit with some changes.
Augmented Reality
Retailers can rely on emerging technologies to provide the experiences shoppers are looking for. Augmented reality is one example. It works by overlaying graphics on a live feed of something – whether that’s your store, the customer’s body, or their home.
Virtual Fitting Rooms
Virtual fitting rooms are the best example of how retailers are using augmented reality for experiential marketing. Some retailers like Charlotte Tilbury and Ralph Lauren have smart mirrors in their stores. Customers can select a product from the store and take it to the virtual fitting room to see how the product looks on their body – without having to change clothes.
Data Unification In-Store and Online
Personalization is at the heart of many great shopping experiences. Nearly half of consumers in the United States have purchased something more expensive than they planned because of a personalized customer experience.
Store Staff Training is Essential
Regardless of the type of experience you provide for in-store shoppers, make sure your sales staff is well-trained and knows how to handle the event.
Impact of COVID-19
We cannot overlook the impact of COVID-19 on experiential retail events. At the beginning of 2020, traditional stores were closed. While half of shoppers plan to return to in-store shopping as soon as restrictions are lifted in their local area, people are still concerned about their health and safety.
Creating Unique Experiences in Your Store
Experiential retail is not just a passing trend – it is the future of how, where, and when we shop. Consumers today expect higher standards than ever before, and experiential retail is quickly becoming the new standard as it offers the experience shoppers are willing to spend money on.
Source: https://www.shopify.com/retail/experiential-marketing-retail
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