Palmer Retail Solutions Blog

The Rise of Experiential Retail and What This Means for Your Business

Posted by Kathy Heil on Apr 11, 2017 2:29:52 PM

experiential retailIn retail today, the big trend is toward offering the best possible customer experience. But “experience” isn’t just the latest buzzword, it represents a dramatic shift in what shoppers expect from retailers. So much so that mall developers are abandoning traditional (and poorly performing) concepts and configurations in favor of more diverse collections of goods and services. They’re building experiential retail destinations.

What does this mean for your business?

Malls have been forced to evolve because shoppers want a total experience, not just a place to buy things. They can buy almost anything online – and they’re doing that in increasing numbers. That’s a practical activity, but it doesn’t do much to feed one’s emotional side. Experiential retail appeals to all the senses. It turns shopping into a lifestyle event.

Wherever your store is located, whatever your size or product lines, you can increase both interest and sales by making the move to experiential retail. No need for a mall-size space or budget, it’s a matter of scale and creative adaptation.

Creating a must-go-there-again experience

Customer service is important, but there is more to experiential retail than simply giving customers good service by being friendly and helpful and having a flexible returns policy. So what are malls and savvy store owners doing to achieve experiential retail?

  • Encouraging customers to test-drive products: Play the game. Use the stove. Take the kayak out on the river. Use the in-store climbing wall or tennis swing simulator to check out new gear. Taste the chocolates. Smell the soap. Apply the lotion.
  • Teaching customers, and broadening their horizons: Classes from cooking and quilting to DIY home improvement. Presentations on relevant subjects (for example, outdoor stores show ski movies), or personal consultations.

Think beyond what you sell to how customers will use the products, then let them experience that for themselves. There are lots of ways to incorporate technology, but use it to boost sensory appeal and create an emotional connection to your store or merchandise.

Experiential retail is about building a sense of community, too. A coffee or wine bar, lounging area, etc. provide a relaxing, social touch. You’re blurring the lines between shopping, playing, and living.

Some things never change

One thing that remains critical for business growth is solid branding. Providing an amazing experience won’t do you any good if customers don’t remember where they had that great experience so they can return. Custom store fixtures ensure foundational branding and ease of navigation, clearly identifying your store as a comfortable place to shop. And custom design allows you to construct anything you want, from any materials. 

Give them an experiential send-off

Creating an awesome in-store atmosphere with activities is great, but you’re in business to make money. So while you’re thinking up ways to wow your customers, remember that your cash wrap has a significant psychological impact. It is, after all, their last contact with you before they head out the door.

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