Experience and perception in stores: top or flop?

Experience and experience in the store: top or flop?

'Experience'. In proper Dutch, 'experience'. Isn't that term a bit overrated? Is it actually necessary? Hasn't it become a catch-all term? A fad? Because let's face it: an Action can do just fine without experience. The same goes for Kruidvat. It is precisely the cluttered layout and the absence of frills that generate better sales at these discount stores. Because people go 'grab and grab'. Furthermore, in Chapter 8 of 'Why Stone Shops Win' (2018), one of the authors claimed that 'experience' only makes sense if it also has 'meaning'. It must be an appropriate 'experience. Confusion all around. For what is meant by experience? Does experience have meaning? And are there any successful examples? In this article the answers. The sense and nonsense separated. The success factors named.

This article previously appeared on www.retailtrends.nl | Image: Stock photo.

By: Eef Luchies and Hans van Tellingen

What is experience?

What is meant by 'experience' is not easy to describe under one heading. In any case, many retailers think that this is the future. With experience we quickly think of lots of bells and whistles, like at the Efteling. And in retail environments we often work with 'digital experiences', with large screens and expensive solutions. But rest assured, experiences can also be simple and inexpensive. A little creativity and entrepreneurial spirit can be enough. There are several examples that show how you can successfully integrate the experience concept into your store. Creating an experience can help to "boost" your business. Ensuring that you get more loyal customers.

Pine & Gilmore

This is why it is good to consider the work of Pine & Gilmore. In 1998, they published their bestseller "The Experience Economy. In short, their story was that not only 'buying products' is important, but that 'undergoing experiences' is also gaining ground. Those experiences (or: perception or experience) can be an end in themselves, as a form of entertainment. But these experiences can also stimulate making purchases. It is not only 'money well spent' when purchasing a product, but it is also and sometimes above all about the 'time well spent'.

Examples: FAO Schwarz

There are many brands and retailers that execute experiences to perfection. For example, look at toy stores FAO Schwarz in New York and London. These have turned their store employees into first-class "entertainers" who perform magic tricks with your child. They can also help your child design their own doll and later fill it with foam using a specially designed machine. The layout of the store feels like "Sjakie in de Chocoladefabriek. Everything moves. Music sounds. And remote-controlled cars drive between visitors' legs.

And in London (at the FAO Schwarz store that is part of department store Selfridges) you can even book the experience after closing time. Together with their own friends. What child doesn't dream of secretly hiding in the department store after closing time and then being able to eat and put on everything? There's also piano lessons on a life-size floor piano and the chance to fly a drone through an empty store. Not to mention a racing competition with a remote-controlled car.

Rapha

But experiences aren't just for toys. The bicycle brand Rapha (bikes, clothing, accessories) uses its stores to sell products (of course), but also for training, inspirational meetings for Rapha members.

Experiences are often thought to have to be big and expensive. Or digital. But that is a misconception. An experience is usually interactive, authentic and distinctive. Experiences create commotion. And commotion is always good. Then people talk about you and you have a larger reach. And you can do that even with simple means.

Mr. Pepper

In Haarlem 10 years ago, everyone was talking about Mister Paprika, a toy store with a café and a big toy train track inside. And in New York, everyone now talks about ice cream parlor Catch'n Ice Cream, where you have to catch scoops of ice cream yourself instead of the store employee scooping them onto the cone. Entire groups of friends meet at this ice cream parlor and it's a hit on Instagram and TikTok. 'Rumour about the brand' gets you noticed. And that can basically be applied in any store. You do the same by making it a special environment. Instead of a boring, standard store.

And what is experience really?

Only having experiences in your store doesn't suddenly save your business or give you an eternal retail life. As always, it is a combination of factors. What experience you can offer depends on your product, location, layout, target group as well as your own talents or those of the employees.

According to Pine & Gilmore, there are four domains into which we can divide experiences. It is possible to combine all 4 domains with each other. But some stores already have enough with 1 or 2 domains. Here we explain these.

Domain 1: entertainment/entertainment

This refers to entertainment without your customer having to do too much for it. You watch it as a visitor and are entertained. An example is the Lancôme stores, where customers are made up while at the same time banging disco echoes through the speakers. Puma's funny graffiti artist who can spray paint sneakers in any color is another good example. At the same time, the "Puma x You" is styling the shoe. And in the meantime, the artist explains what he is creating. The customer is a spectator and is optimally entertained.

Domain 2: education/education

Here lies a great opportunity for the store assistant. His or her knowledge is crucial to bring the customer into this valuable way of experience. Think interactive service and thorough knowledge to let the customer know more about the product. At a wine store, a customer can learn about the origin of the wine, the winery and how the wine can be paired with an appropriate menu. It is even possible to make your own wine.

Domain 3: escapism/escapism

'Escapism' allows the customer to escape daily reality for a while. Of course, this concept works best when done in conjunction with product sales or the sale of a service. An example? Eataly, an Italian food retail concept, applies 'escapism' perfectly in its stores. You imagine yourself in the real Italy, so to speak. The store forms an Italian backdrop in terms of music, food, wine and coffee.

Another example is Nike, which has a real basketball court in its store with House of Innovation in several major cities. And in New York there is the store Lululemon where, in addition to yoga sessions, you can buy an interactive mirror for workout sessions at home. Furthermore, Puma's "skillcube" is another great example. Here you can work out with other shoppers or compete with each other.

Domain 4: aesthetics/design

People often love beautiful, cozy places and stores. Beautiful is a subjective concept, but a common denominator can be found by designing stores that are seen as attractive by large groups. Like the stores Deciem, Malin+Goetz, Aesop and Gentle Monster. They translate a movement and make a statement. The stores feel almost museum-like. Noc Coffee Co's roasteries are another great example. Unsurpassed in terms of design and therefore distinctive.

Age

Experience is for everyone. The youth are more often looking for entertainment and amusement (domain 1). And the older generations (from 35+) are more likely to be found in domains 2 and 3 (education and escape). Excitement and conviviality often go well together and blurring of retail and hospitality is a golden opportunity. This works well for all ages. A good example is the Dutch Only for Men.

Conclusion: experience is eminently something for real stores

Experience, or the English 'experience' is a broad concept. Even the lack of experience (in Action or Kruidvat, for example) can be seen as a form of experience. Precisely the obligatory 'just being there' stimulates sales in these cases. Furthermore, experience can already exist even if you have only a small budget as an independent retailer. But big brands like Nike use experience in their flagship stores as "a way of life. The customer becomes one with the brand. And the brand and sales benefit.

The fact is, however, that experience is pre-eminently a physical activity. Often in combination with technical aids, but always on the spot. In the store itself. This allows the brick-and-mortar store to win out over the Internet. Retail is a people business. And people often enjoy the attention, entertainment, design and interaction that only a brick-and-mortar store can offer. Experience is therefore not a magic word or a catch-all term. It is the ultimate expression of human 'being'. If you get the experience right, you're going to sell more. You get more turnover. And the customer will gladly come back to you. Online shopping is boring. In the real store, 'being human' comes into its own.

And a message for retailers with little or no budget: ultimately, service and entrepreneurship are the ultimate experience. Pamper your customer, pamper him or her. Listen to your customer. Believe in the products you sell. And tell the customer all about it (in fact, this is domain 2). It doesn't get any harder than that.