Using Storytelling to Keep the Customer Coming Back to the Store

When people’s time is precious and transportation costs are high, retailers can’t rely on the thinking that if they build stores, people will come. Instead, retailers must offer more than just a physical space that stocks merchandise. They need to entertain, educate and engage consumers to bring them to the store and make them never want to leave.

PSFK advised retailers to think of all store locations as flagship stores and treat customer visits as opportunities to tell the story of the brand. Disney stores executed this idea by remodeling their stores to become a family entertainment hub where kids can interact and play with the merchandise. The New England grocery chain Stew Leonard’s organized their stores by stocking merchandise needed for certain occasions together, such as a barbecue or birthday party. Customers then buy items for an experience and possibly pick up a few things they didn’t think they needed, like birthday hats or corn on the cob holders. Stew Leonard’s stores also have animatronic farm animals kids can play with, flat screens that show feeds of their own daily cows and bountiful offerings of free samples.

The important thing to remember is that the store is an extension of the brand and thus offers a unique opportunity to create an immersive brand experience for the consumer. Apple stores capitalize on this opportunity by keeping their design aesthetic relevant to their brand and by offering product testing stations and optional education classes for customers. Lance Armstrong’s bike shop in Austin, Tex., is meant to be a hub for the diverse biking community, whether people are beginners or almost pros. Mellow Johnny’s even has a coffee shop, showers and bike storage systems to encourage more people to join the cycling community. By creating a community and not just a software store or cycling shop, Apple and Mellow Johnny’s make a visit to their stores not just another stop on an errand run but a place to spend an afternoon browsing and talking with others.
 
It’s also important to note that the stories retailers tell require scene changes. In order to keep up with shopping and cultural trends, retailers need to continually reinvent the shopping experience, all the while still keeping the brand’s core message and story in mind. Product displays and merchandise need to be rearranged and transformed to give the customer a reason to return.

Using Technology to Get Consumers to the Store

No one doubts the claim that the Internet and rise in mobile technology hasn’t transformed the retail industry. It’s the thought that people are no longer making trips to the stores that should be up for debate. The truth is that people still shop in stores. Technology is used to get them there and to make their experience more enjoyable so they keep coming back.

PSFK highlighted some great ideas of how retailers can leverage technology and drive consumers to their stores. For certain retailers, it may be helpful for the customer if they post wait times, store maps and inventory lists on their website. Google has launched an initiative to begin posting pictures of the insides of places on Google maps. Retailers can set up an appointment with Google photographers to get their interior shot and added to the Google places site. In the meantime, stores can post updated interior photos themselves and even set up a web cam so customers can watch a live stream of the store’s activity any time they want. This way, customers can time their visits based on whether they think the photos and videos show it’s a good time for them to shop.

Once a customer gets to the store, employees can use technology to create a more personalized shopping experience. Sales staff can use handheld devices and iPhone and iPad attachments to make transactions on the floor, freeing them from the desks and increasing interaction with customers. iPads stationed in store can run applications that help customers find what they’re looking for or get more information about a product when they don’t want to talk to a sales person.

Stores can also encourage its customers to share their experience on social networking sites by building a station where they can upload a picture or message in store. Diesel in Spain equipped their stores with a kiosk and camera so customers can upload photos to their social networking sties and ask for friends’ opinions as they try on outfits. This summer, JC Penney embraced user-generated content and had kids create YouTube back-to-school haul videos, showing friends what they bought when they shopped at JC Penney. The department store hopes the viral videos featuring ordinary teens will influence followers and friends to make similar purchases.

Technology will continue to be a welcome addition to the physical store environment. It’s a valuable asset in helping retailers create a destination shopping experience through storytelling and product education.

The Future of Retail is Still the Store

According to a recent study by the U.S. Census Bureau, the majority of sales still come from in-store purchases. Certain categories, such as books, clothing and electronics, see high percentages of e-commerce sales, but the overall message for retailers remains the same before the rise of the Internet: attention to the physical store should be a top priority in an effort to attract and keep customers.
 
That doesn’t mean retailers shouldn’t welcome changes to their stores. Around the same time of the release of that report came another study that revealed people are happier if they spend their money on experiences and not material goods. So what’s a store that makes and sells material goods to do? Create an experience around shopping, like B. Joseph Pine II and James H. Gilmore suggested in their 1999 book The Experience Economy. In short, Pine and Gilmore state companies must create memorable events for their customers so the memory becomes the product instead of the tangible good they purchase. It’s why you see more roller coasters springing up in shopping malls and more cafés attached to bookstores and even home goods stores.
 
Online shopping contributes to retail sales, but offline shopping offers an opportunity to create a lasting memory that turns a consumer into a loyal customer for your brand. How do you transform your store into an experience? PSFK, a trends research and innovation company, proposes that successful stores are the ones that leverage technology and push the boundaries of storytelling, product testing and education, two ideas that will be explored in upcoming posts. 

It’s a Woman’s Retail World According to One Expert

Retail guru Paco Underhill cares about what women want so much so that he wrote an entire book on the topic. What Women Want: The Global Marketplace Turns Female Friendly tells a story of how smart businesses are changing to fit the needs of women, a growing group that often already makes up more than half of their customers.

In an interview and a book excerpt posted on NPR, Underhill reveals that five years ago, young women under the age of thirty over took men in earning power for the first time in history. Underhill writes, “In the United States, the chances of being twenty-five years old and gainfully employed are higher if you’re a female than a male. These odds go up even further if we don’t consider immigrant, African-American, and Latino populations. Economic hard times favor females, too. During the recent recession, 82 percent of job losses befell men, who tend to be disproportionately represented in industries like construction and manufacturing. Historically, women are apt to work in fields such as education and health care, which are more resistant to economic swings.”

More money means more power, independence and wealth to spread. Retailers better take notice, and Underhill points out that some of them already have.

Using examples from the hospitality industry, Underhill explains how hotels have tweaked their shower curtains to appeal to a woman’s higher standards in personal hygiene and modified their check-in process to increase a woman’s feelings of security.

When trying to increase a female customer base, retailers should not only concentrate on what products and services they sell, they should also place importance on how they’re doing the selling.

A Ballad of Bad Service

There is no shortage of stories that chronicle a truly bad customer experience, but not many reach almost mythical status. The application of social media makes this possibility stronger than ever. Case in point: “United Breaks Guitars.”

To make a long story short, a band was traveling on United Airlines when one of the members noticed baggage handlers throwing their musical instruments as they unloaded the aircraft. After trying to get immediate help followed by nine months of trying to get some satisfaction from airline customer service representatives, the band pledged to write a protest song and put the video on YouTube. They did just that and within five days, “United Breaks Guitars” became a smash viral video. Over one million people downloaded the video in its first five days.

It’s another cautionary tale. Disgruntled consumers now have powerful recourse. In this case, the airline had nine months to address a seemingly reasonable request, and couldn’t come up with an answer. In the end, the band was offered compensation, but chose to have it donated instead. Had United demonstrated even an inkling of the band’s public relations know how, they could have avoided the incident altogether.

Perhaps it’s time to apply the, ‘United Guitar,” test to all interactions with consumers who are seeking help with a customer service or quality issue. Ask yourself a very simple question: Could my action or inaction end up making my organization a poster boy for all that’s bad in the world of large companies who allow policies and procedures dictate the customer experience. If the answer is yes, it should set of an immediate alarm.

Better yet, use the example of the band and how they used social media to become consumer advocates. Getting involved in the conversation rather than fighting it seems to be an easier way to strike the correct chord.

If you can’t compete on price, compete on customer service instead

In January of this year, Reuters reports on the decline of consumer brand loyalty. The study conducted by Catlina Marketing Corp.’s Pointer Media Networks’ was only a portion of how consumers where changing their shopping behavior.

Today, consumers are more conscious on price and promotions. Krogers and Wal-mart are just two of the trending grocers that are seizing the opportunity to expand their private labels. Private labels attract the wallet-strapped consumer away from choosing the leading brand. The competition is rising and consumers are taking second thoughts on traditional buying habits. The only place left for brands to sustain and regain customers is through service.

Brands need to aware of how the retail storefront represents their image. Quality and service is first felt through sales associates and then the product display. Customer’s may question and analyze their purchasing decisions. Friendly and warm customer service associates have the ability to sooth customer concerns. Messy and ill-stocked shelves or racks bruise the brand’s image. Overall poor service can ruin the SATISFACTION customers receive from choosing your brand.

Customer’s want reassurance their purchases are backed by brand quality and honesty. Living up to your promotional promises, quality guarantees, and first-rate follow up service is essential.

Customers won’t return to a brand that is not receptive to their needs. Receptive attitude starts with listening. Listening to the customer voice, employee satisfaction, and market trends. Impeccable service begins with a questionnaire, a storefront quality audit, and continues until service is measured with positive results.

In today’s market, what is your brand waiting for? Measuring your success with customer experience takes initiative and commitment. A commitment to the brand’s integrity and quality.

How do you define your brand?

If you described the effectiveness of your brand in three words, would “great” be one of them? Now, if your consumers did the same thing, would they include “great”? Every brand should be striving to be defined as great.

What does it mean to be a great brand?
Great brands consistently deliver and foster deep relationships with their consumers. They conduct business with quality across the board. Great brands know why customer’s are loyal and how to leverage customer satisfaction to attract new customers. Great brands are managed by members who take pride and believe in the product. Great brands are consistently looking for areas to improve and stay in step with consumer trends.

Is your brand great?
In order for you brand to be great, you don’t have to have the largest market share, biggest advertising campaign, or most elite product. You just need consumers to have a strong brand experience. It’s creating a deep connection with the consumer through service, promotions, and product development. Measuring the success of the brand with consumers and always looking for ways to improve.

Great brands are successful with having great presentation, creative promotions, and top notch customer experience. It’s working full circle to consistently bring amazing products and services to your customer.

Note: The “Brand Experience” category has been added to this years Effie Awards. Read more here.

Coffee Wars Continue

You are going to have to be a hermit this week in order to miss the large scale marketing campaigns by Starbucks and McDonald’s. The fast-food king will be taking on the coffee king to win consumer’s tastebuds.

Earlier this year, Starbucks introduced a cheaper instant version of their gourmet coffee to appeal to cost conscious consumers. The chain has also initiated several in store campaigns with Pikes Peak and emphasizing the “coffee house” feel of the interior. Starbucks has valiantly worked to maintain the top level position as coffee king while consumer shopping habits and attitudes have jumped all over. This week’s campaign is geared to remind consumers that Starbucks brand is the premier choice.

McDonald’s has slowly rolled out the McCafe starting this earlier this year. This week starts the major marketing campaign that has even AdAge impressed. McDonald’s is using demographic and shopper behavior science behind their campaigns. Some of the ads where developed with Hispanic and African-American preferences as the focus. Overall, the campaign will be using radio, TV, print, and internet to saturate the market just before summer kicks off and icy drinks are popular. McDonald’s understands it will have to prove the quality of their coffee to win over leery customers.

What’s the customer say?
The marketing campaigns may get consumer’s attention, but the deciding factor will be the customer’s experience. Both McDonald’s and Starbucks will need ensure customer satisfaction is extended beyond the flavor of their coffee.

McDonald’s will need to focus customer experience on the entire ordering process. As the fast food king, there is plenty of room for errors to occur when a minivan full of soccer kids order and the mom decides to try a McCafe coffee. One mishap, can ruin the entire customer experience and negate the efforts of their marketing campaign.

Starbucks will need to look beyond being the established coffee specialty house. In-store promotions to highlight other menu items such as pastries or teas could help extend the brand beyond the coffee. Starbucks strong point will be consumers searching for the “coffee house” experience not just caffeine. This is one niche Starbucks should make the effort to ensure experiences exceed expectations.

There’s no better time to rev up employees to provide the best service, ensure quality control, and maintain a positive attitude then during a mass marketing campaign. What the customer’s experience will be the deciding factor.

Measuring brand success through promotions

Consumers are more likely to buy what they can touch, feel, and try. This is why over the past several decades event marketing has grown. It is common practice to outsource your promotion to an event marketing company. How do you pick the right one?

Here are some of key items to look for in an event marketing company:

1. What controls are in place to ensure that the product remains 100% safe and free from any potential risks?

2. Does the event marketing company have experience executing the specific type of event you desire to run?

3. Does management take a hands-on approach to events and will they be in the field each day the program is running?

4. Is the company familiar with social media and blogs? Do they have a strategy to monitor positive or negative comments on a high-traffic blog or social networking site?

The critical issue in all of this is to know how to monitor and verify a program. This is where the issue moves to another level. Monitoring and verifying performance is prudent. In the long run, knowing where your success and area of improvements are will dramatically increase the program’s return on investment.

Investing in event marketing can have a positive return on investment as long as it is successful. This is why having measurement tools in place to ensure that both performances occur at the desired level and the entire program remains safe is important.

You can read ICC/Decision Services’ white paper on Event Marketing here.

Brand Wars: Name brands versus private label.

In today’s economy, the retail industry is seeing consumers engage in two shopping trends. Consumer coupon use is increasing and there is a push to buy store label and generic brands.

It’s a battle of who can provide the best customer experience with the lowest price. Name brands can use coupon and in-store promotions to reach consumers. Simultaneously, store and generic brands can offer competitive lower prices to attract consumers away from name brands.

In a downturn economy, shoppers are less likely to splurge on trying the newest line of products. Name brands will continue to stick with their established brands, who can compete against generics. Name brands have a potential to tap into consumer brand loyalty through coupon saving programs and advertising. Brands need to have a customer experience program in place to measure their campaign effectiveness. Keeping consumers highly satisfied will the be key to pull consumer’s attention away from the competitor.

Across the board, store brands and private labels have an advantage with their lower prices. A consumer may be willing to try the off-brand if the savings are significant. Store and generic brands may get consumers to try to products, but they won’t keep the consumer unless the experience was significantly better than the name brand product. This is the time for store brands to increase consumer research to know how to improve their products.

The visible shopping behaviors benefit competing labels: Name brand vs. store brand. The final test will be with the customer experience.