How the Experience Economy Reshapes Retail Customer Experience

The traditional brick and mortar retail model, which relied heavily on offering products at the lowest prices, is facing a significant transformation. This shift is brought about by the rise of e-commerce, which can provide commodities and services at competitive prices. To retain its market position, physical retail has had to seek new avenues beyond just offering the lowest prices. The emphasis now is on enhancing the customer experience through a more engaging and enriching experience economy.

What Defines the Experience Economy?

The experience economy is a paradigm where businesses focus on providing customers with memorable, personalized, and high-quality experiences. It goes beyond the mere transaction of goods and services to create a lasting impression and emotional connection. Customers are no longer satisfied with just the functionality of a product, but with the stories, emotions, and overall enjoyment derived from the experience. In the realm of retail, this means transforming the shopping environment and interactions into a unique experience that sets brick and mortar stores apart from online counterparts.

The Transition from Price to Experience

Historically, customers chose service providers such as barbers, tailors, and shoe retailers based on personal preferences and service quality, not solely on price. This principle still holds true in the modern retail landscape. When faced with competition from e-commerce, brick and mortar retail has had to redefine its value proposition. Instead of competing on price, the goal is to provide an experience that is unattainable through online shopping. This can include offering customer service that goes above and beyond, unique shopping experiences, and memorable interactions.

Predictions for the Future of Retail in 2020

As we move forward into 2020 and beyond, we can anticipate a variety of innovative approaches to enhancing the customer experience. Here are some potential trends and examples:

Sponsored Experience Programs

One intriguing approach is the integration of sponsorship into the customer experience. For instance, luxury watch brand Breitling offers a sponsored surfing tour, where participants get to enjoy an exclusive watch with the experience. This type of program not only provides a memorable and unique experience but also aligns the brand with high-value, adrenaline-seeking customers. Such initiatives help to create a deeper emotional connection and brand loyalty.

Personalized Shopping Assistants

A more tailored approach involves the use of personal shopping assistants who guide customers through their shopping journey. These assistants can offer personalized recommendations, assist with fitting and trying on products, and provide expert insights that an online service may struggle to match. In a physical store, the personal touch of a knowledgeable and attentive staff can significantly enhance the customer experience, making the shopping process much more enjoyable and satisfying.

Improved Store Ambiance and Comfort

To compete with the convenience of online shopping, physical stores must also focus on creating a pleasant and comfortable environment. This includes comfortable seating areas, stimulating design elements, and a seamless checkout process. A store that feels welcoming and inviting is more likely to keep customers engaged and encourage them to spend more time exploring its offerings. This type of ambiance can be achieved through thoughtful interior design, strategic placement of products, and attention to detail in every aspect of the store's operation.

Conclusion

As e-commerce continues to grow, brick and mortar stores are facing the challenge of redefining their role in the retail landscape. The key to survival is not just about offering the lowest prices, but about delivering a superior customer experience. By focusing on creating memorable experiences, from sponsored activities to personalized assistance and comfortable store environments, physical retail can reclaim its position in the market and ensure a prosperous future. The experience economy is here to stay, and those who embrace it will thrive in the years to come.