The Future of Real-World Retail? Engaging customer experiences

07/09/11

Our partner Cate Trotter from Insider Trends outlines her thoughts on the future for the retail industry. Cate is an expert in analysing consumer trends and regularly runs workshops in the Centre.

Online shopping experiences continue to become more and more rewarding – shoppers can now purchase items with Facebook, see a myriad of reviews and ratings for almost every product, shop in real time with friends in far-flung locations, and instantly tailor entire websites to their specific personal interests.

It’s no surprise, then, that UK online sales are growing at a massive 20% each year, and that the number of people happy to spend more than £1000 in a single transaction doubles on an annual basis.

Online shopping is now more convenient, affordable and engaging than ever before. Which leaves physical retailers with a conundrum – how can they get their edge back so customers are compelled to leave their laptops and spend time travelling to the store?

The answer in one word: EXPERIENCE.

Smart real-world retail stores realise they have to differentiate themselves by providing the things that online retailers can’t. Anthropologie has set up some of London’s most successful retail spaces by offering an experience first and an opportunity to buy second.

Its instore visual merchandising team design spaces that shoppers want to explore. Customers don’t arrive with a specific purchase in mind – they come to see what’s changed and to spend time with a brand they love. As they meander through the store, they chance across things they like and go on to purchase them.

This indirect sales strategy is definitely working – the average customer spends a whopping 75 minutes and £60 in the store each time they visit.

Technology will also feature heavily in the future of retail, enhancing the offline shopping experience with the wealth of data available online.

Wet Seal, an American clothing retailer for teens, has leapt ahead with this trend through the launch of its iRunway smartphone app. As shoppers browse instore, they can use the app to scan an item tag. The app then displays the most popular crowd-design outfits that include the scanned item.

It means that every single query shoppers have can be answered instantly with highly trusted advice from people who love the brand. By creating a highly useful, ‘sticky’ experience that encourages customers to explore and engage, the smartphone app boosts customers’ average order.

To get in-depth insight into how you can push your retail business to the next level, come to Insider Trends’ Future of Retail workshop at the Business & IP Centre on Monday 26 September. To find out more and book tickets, go to http://www.bl.uk/bipc/workevents/rwretail.html