Image source: Tim Nichols (2014) –
“Experiential Marketing on The High Street” (ExactDrive™).
The growth of online shopping has
led many traditional brick-and-mortar retailers to create and emphasize unique
in-store shopping activities and experiences as a way to compete with online retailers.
This is known as experiential retailing, and the idea behind this trend is that
the one thing online retailers can’t offer is the in-store experience.
Therefore, if offline stores can develop truly interesting, entertaining,
and/or one-of-a-kind shopping activities/experiences, that would be one way to
effectively compete.
There are a number of examples of
companies engaging in experiential retailing. For instance, Bass Pro Shops
Outdoor World superstores feature a number of attractions that make each store
a unique destination, such as indoor waterfalls, gigantic aquariums, archery
ranges, and ponds with fish native to the store’s area. In addition, the stores
hold a number of demonstrations and workshops that teach customers a variety of
skills related to outdoor activities, including camping, hiking, fishing, and
water safety. Another outdoor recreation company, REI offers climbing walls at
some of its stores, for patrons to try out and practice their rock climbing
skills. In addition, Dick’s Sporting Goods offers a golf simulator for shoppers
to try out any of their golf clubs on a number of virtual holes before
purchasing them. On the simulator, the customer hits an actual golf ball and
then a large projection screen shows the flight of the ball through the air, as
well as where it lands. In addition to displaying this, the simulator also
provides a number of useful metrics, such as ball distance, speed, launch
angle, and spin, to further help customers decide if the club they’re using is
the right one for them.
Sporting goods and outdoor oriented stores aren’t the only ones
engaging in experiential retailing. Many other brick-and-mortar retailers are
starting to use technology to create a personalized shopping experience for
customers. For example, many companies such as Target offer mobile apps that
allow shoppers to see if an item is available at a particular store, and if so
tell them the exact location of that item within that store. In addition, other
retailers including Timberland, are beginning to employ the use of augmented
reality systems in their offline stores, to allow customers to virtually try on
clothing and accessories, as well as instantly mix and match various
combinations of shirts, pants, shoes, etc. www.youtube.com/watch?v=5TZmQPdhpak. Neiman Marcus has also developed the “Memory Mirror”
shopping assistant, which allows shoppers trying on various items to view them
on a large video screen from any angle, as well as instantly change an items
color, or see the way different outfits look in side-by-side comparisons: www.youtube.com/watch?v=B97k394jetk.
Since many of these retailers’ items
can be purchased online, companies are hoping that by offering these extra
experiences, it will encourage consumers to go and shop at their physical
stores. Obviously online shopping is here to stay and will most likely continue
to keep growing well into the future. However, experiential retailing does show
promise in helping offline retailers to still have a relevant place in
consumers’ shopping habits.
What do you think of experiential retailing? Do you think it’s a
viable technique for allowing offline stores to better compete with online
shopping? Are there any other examples of experiential retailing that you’ve
recently seen in action? Please
share your thoughts in the comments section below.
John
Gironda, Ph.D., is an Associate Professor of
Marketing at
Nova Southeastern University. His teaching and research interests include
digital and social media marketing, consumer behavior, marketing strategy,
advertising, personal selling, and sales management. He can be reached at: jgironda@nova.edu
This article really reminds me of a concept I learned about in a consumer behavior course regarding utilitarian value versus hedonic value. Utilitarian value refers to the practicality or usefulness of an experience or product, while hedonic value refers to the experience as a whole. This article shows that by increasing the hedonic value of the offline store by adding to the experience of visiting the store itself, the company will experience an increase in success of the brick and mortar store.
ReplyDeleteThis is a very interesting article. Throughout the years, online shopping has really taken over, with shoppers preferring to online shop in the comfort of their own home. Black Friday was once a huge holiday, but more people are opting to participate in cyber Monday. While I do think that experiential retailing may make stores seem more appealing to shoppers, I'm not sure if it will make that much of a difference, as I believe online shopping will only grow from here.
ReplyDeleteThis article does a good job of highlighting the rise of online shopping and how certain businesses like Bass Pro Shops Outdoor World and Dick's Sporting Goods are responding to the online shopping wave. Bass Pro Shops Outdoor World's ranges and aquarium have always interested me every time I have gone.
ReplyDeleteI agree with the premise of this article, but I believe there may be another extreme. While a store like Bass Pro Shops may attract customers with a waterfall, there is still a category of customers who care much more about price and do not mind purchasing a jacket on Amazon. That is where Walmart, for example, would step in and offer an extremely similar quality jacket for a very similar price. The stores that might suffer will be the ones in the middle of the two extremes, where they do not attract customers with experiential retailing, and cannot compete with the lower prices of online shopping.
ReplyDeleteSecondly, my own experiences with experiential learning can at times end with an online shopping purchase. If I wanted a golf club, for example, I can go to Dicks Sporting Goods and test different brands, with zero obligation to purchase the product. I could then find the product online for a lower price, and immediately have it delivered to my house. If the price is close I will buy at the store since they gave me the convenience to try it out, but if it is not a fair fight, I would not be doing my job as a consumer correctly. Eventually, supply and demand always wins.
I agree that experiential retailing can save offline stores, but it needs to be completed in the correct fashion, and even that may not be enough.
I enjoyed reading this article. Over the years, customers have shifted to online shopping so experimental retailing for offline retailers seems like a smart way to compete with online stores. The stores provided were all good examples of how experimental retailing can make a difference in the market. Some products require an experience like that to lead to a sale. Another example i can think of is the VR game simulation in Best Buy stores. Before purchasing a VR, a customer can actually try it, which i think can potentially lead to more sales. That being said, online shopping nowadays is easier and more practical in most cases so the competition will be tough.
ReplyDeleteExperiental retailing could influence customers to shop in offline stores so that they could experience any cool and exciting things. However, I still believe that online shopping will still become more popular than going to the mall and shopping for four hours holding numerous bags.
ReplyDeleteI think experiential retailing is a very good way to modernize companies. It offers intriguing technology to draw in customers and publicize their company more so. Having things like the virtual golf course at Dick’s sporting goods is something that can be portrait online as an activity to visit the store. Through activities like this I believe that it does somewhat compete with online shopping. Some experiential retailing I have seen is in a Khol’s where you can order online in store. This might seem contradictory but for people who are ordering a lot or their item is not in store it proves to be useful.
ReplyDeleteExperiential retailing is a great thing to do because it will get customers to go into stores instead of staying home and shopping on their computers. It is a viable technique for offline stores to compete with online shopping because it will let customers have a greater and better experience in store and bring more people in to shop. One great example would be IKEA. There is a lot of amazing things you can do there such as testing out things there and cheap good food, but the downside is walking through the whole store to get out.
ReplyDeleteI definitely think that as technology grows, it becomes harder and harder for brick-and-mortar type of stores to keep up. This is why I think that they are moving in the right direction by implementing Experiential Retailing. People come to expect that you have some type of tech-savvy guide or board (or whatever can be found in a particular store) or else the store feels outdated or not "in" with what is currently happening. Especially for certain types of stores, I personally feel like there are stuff I need to try in the store, such as clothes, and I really like the idea from Timberland that let's you virtually try on designs.
ReplyDeleteThis article has perfectly described the affected traditional brick-and-mortar retailers due to the growth of online shopping. The technology has changed consumer’s lifestyle also their shopping style. Nowadays, most people will prefer ordering stuff online and get it after a few days instead of going to traditional brick-and-mortar retailers. However, I still believe that experiential retailing will definitely be a pro of the conventional stores and bring back some consumers.
ReplyDeleteWell, I can't say for sure if experiential retailing will be able to compete with the ease of online shopping, but I will certainly tell you as a consumer and a collector, there is nothing quite like the joy and nostalgia you feel when you find the item you're looking for "in the wild," so to speak. Going to the store can be fun when the store provides a pleasant experience, so there is certainly something to be said about experiential retailing.
ReplyDeleteIn my personal experience, I collect things like old Star Wars figures that are no longer found in major stores like Target or Walmart. It is easy to go online and find what I'm looking for at a semi-decent price, but there is something special about going to an antique mall or a mom and pop style comic book shop and finding it there by chance, like it was meant to happen. Major stores can certainly be drab and cramped, but comic book stores like my personal favorite "Tate's Comics" near my house is an example of experiential retailing because of all of the almost exhibit-like displays they use for their merchandise. Every franchise has a section of the store dedicated to it, and it sets up the collectibles by type and age. Larger items like a life-sized Incredible Hulk or Han Solo in carbonite are spectacles on their own. Wandering the store is half the fun, or sometimes all the fun. I usually go just for the feeling of being among these things that bring me such nostalgia and rarely end up leaving with a full wallet.
All of that said, I have no idea if brick and mortar stores can compete this way, especially in this age of convenience and mechanical interactions. The personal, intimate consumer experience has lost value to many people, but it will always have a niche in the hearts of some people.
Although people much prefer to shop online now for its convenience, experiential retailing allows shoppers to create memorable experiences and create a direct relationship with the company that will help further increase consumer loyalty. It simply offers more than online stores can. Yet, most people including myself aren’t looking to create experiences because they’d rather save time on the commute to stores as well as its increased convenience. There are also more options when it comes to online shopping. I am able to find specialty items on the internet. There have been several moments when I’d scroll through a company’s website and see that various items are sold “Online only.” I do think that it depends on what item a consumer wants. I would much rather go to a store and get the experiential experience if I was shopping for clothes since there are fitting rooms.
ReplyDeleteI decided to comment on this post because we are two years into COVID-19 and the world has changed around us. Reading the comments above some has said that experiential retail didn't stand much of a chance compared to online sales. Taking a look at our current situation I would say there is some truth to that being that online and "contactless" forms of payment and delivery has exploded. But as we stable in our "new normal" experiential sales/retail is making a come back. Most find it pleasing since its something we haven't seen in awhile. A large effect that certainly does push people online to make the purchase in my opinion.
ReplyDeleteExperiential marketing is a way to allow shoppers to create memorable experiences. In addition, the examples given were great examples of the way companies uses experiential marketing. I agree that offline shopping can compete, however the experiences would need to be truly interesting as a beginner.
ReplyDeleteI think experiential marketing is absolutely necessary for brick and mortar stores to stay relevant and profitable in this digital day and age. Especially since we are entering an even bigger transitional phase where we see technology becoming more involved in our everyday lives. The convenience and options online shopping provides is definitely a cause of concern for brick and mortar stores. Another example of experiential marketing that comes to my mind is the sink at Bath and Body Works where you can try out different hand soaps, body scrubs, and other various products you may use with water. I think these sinks where customers can try the products are a big draw in, to shop in store rather than online. Especially due to all the new and seasonal scents they come out with. So, a repeat customer who already knows what they want may opt to come in rather than just order online so they can test out new products.
ReplyDeleteOnline shopping has been increasingly popular over the years, with consumers choosing to do their shopping from the convenience of their own homes. While Cyber Monday is becoming increasingly popular, Black Friday used to be a major event. Even while I think experience retailing might make stores seem more interesting to customers, I don't think it will have a big impact because I think internet purchasing is becoming the go-to shopping method for consumers.
ReplyDeletePersonally I believe that experiential retailing is a smart choice for brick and mortar stores. This could help them compete with online shopping and online stores. The examples Bass Pro Shops and REI firsthand show how that by creating unique in-store activities, that will attract more customers. By using things like AR and interactive mirrors, it also makes the experience more appealing and modern.
ReplyDelete: I agree with this post especially after I had Professor Gironda. I see nowadays that since people have more online retailers as they get popular the in-person experience is getting less and less good so with that against them more and more stores are making experiences in the stores to have more recurring customers.
ReplyDeleteI think the idea of experiential retailing is a great start to combat the growing preferability of online shopping. However, I don't think it's enough to sustain against the laziness of Americans. I think a survey should be done on how influential experiential retailing is in determining whether or not a customer goes in store or not. I think brick and mortar businesses will find more success by engaging in in-store activations (brand partnerships) with influencers, as a means to drive customers into their storefronts.
ReplyDeleteI believe experiential retailing is a viable strategy for traditional retailers to compete with online or e-commerce retailers. By offering value-added experiences that go beyond mere transactions, I think retailers can encourage customers to visit physical stores rather than solely relying on online purchases.
ReplyDeleteOnline shopping is increasingly relevant and will continue to evolve, as we have seen. The technology showcased in the Neiman Marcus video is already outdated compared to what is available today. For example, Ikea uses augmented reality to reduce returns by showing how a product would look in a customer's home. There are also apps, like Yuka, that allow you to see product quality ratings while you shop.
ReplyDeleteShopping online has been a great opportunity for many companies to reach farther locations without the cost of purchasing land and setting up physical stores. While I believe that physical stores can be largely replaced by online shopping, it is experiential retail stores that I consider to mark a clear difference that cannot be replaced. This difference comes from the immersive experiences they offer, allowing you to engage your senses such as touch and smell without having to wait for delivery or make a purchase and even the way those experiences make you feel like when you enter to a luxury store.
Experiential retailing and the use of AI create a new incredible advantage for offline stores by bringing the internet to life. The Bass Pro Shop example is incredibly similar to the recent opening of the Finker-Frenkel Wish House in Miami, which opened this year. Usually, a child will decide their Wish from home, making it more of an online experience compared to physical for the decision portion.
ReplyDeleteIt is unbelievably challenging to select your Wish, so to aid in the process, a former Disney Imagineer crafted an AI WishWorks experience to create the choices visually. Instead of keeping the wishes trapped in the child’s mind, they now visualize their ideas in person. This emphasizes the hedonic value by making the experience as mesmerizing and creative as possible.
I really liked this article as it differentiates what consumers get online vs. in store. With it almost being 7 years later from the time this article was written, I think that it is important to identify the role of social media now being that there are such things as TikTok Shop and Amazon where it is a one-stop-shop and people can view customers reviewing and trying the product either in photos or videos. However, on the other hand, companies are trying to encourage customers to come back into stores by providing unique experiences, or products you cannot get online and in store only.
ReplyDeleteIn these times, online shopping has become the top way of shopping for consumers, since it is easy and comfortable as they do not even have to move to buy or pick up the products. I believe that the discussion of whether online shopping is going to replace in-store shopping has an undoubted answer and that is that something about in-store shopping is irreplaceable, the experience. As shown in this article, many consumers prefer buying online when the store does not provide an experience, but when a store does it, they might choose in-store shopping. So I think that the best way that brands focusing on selling in-store like Macy's or TJ MAX can use to not be replaced by online brands such as Amazon or Shein in clothing, is by adding these experiences.
ReplyDelete