Revamping in-store customer engagement: Making shoppers feel ‘something spectacular’

Retail has changed in a variety of ways over the last decade. Certainly, the expectations of what a store represents, what it's meant to offer, is reflected in shoppers' reactions online and offline. And yet, the approach too many retailers take is stuck in the last century.

The pressure on retailers is enormous. Store managers are now tasked with crafting experiences that transcend the traditional transactional model. A visit to a store needs to qualify as "an event."

Events are characterized by excitement and showmanship. Simply having a sales representative walk up and say, "Hi, how may I help you?" doesn't tend to warm a shopper up for a thrilling time. In fact, depending on the personality, it could even alienate or annoy.

So how can retailers mix a show of spectacle while providing highly personalized, one-to-one service? It starts with letting the consumer set the interaction.

Shopping as entertainment

Retailers need to experiment. One way to welcome customers is to provide a space for openness. Is someone coming in quickly and determinedly to pick up a purchase made online? Or are they just casually strolling in? Figuring out the customer's mindset is tricky. But the data associated with someone picking up an item can be clear: this person is on a specific mission. Unless the engagement is about making their checkout more seamless or providing inspiration for a purchase that complements their product selection, you might want to give them some breathing room.

However, a group of friends just popping in might be open to an interactive product demonstration. Immersive technology installations are already redefining retail through the use of augmented reality/virtual reality experiences that bring products to life in a unique way.

If that idea sounds ideal for a brand giant like Apple, guess again.

Retailers, including health and wellness, clothing and cosmetics, appliances and electronics, all need to take note of the new crop of entertainment venues. One of the most innovative entertainment launches in decades was this past summer's Las Vegas MSG Sphere, a $2.1 billion hybrid in-person/digital concert and sports venue that began with a residency by the band U2.

At a time when people still need a reason to leave their couch, retailers need to get creative about loyalty too.

Loyalty reimagined

Merchandising is more reliant on loyalty. But the nature of loyalty has changed. Mobile apps have reinvented that concept as well, with the punch cards of yore, in which a retailer would just clip a hole to deliver a discount, largely gone.

Aside from not wanting to carry around a piece of paper, patrons have come to expect more than price breaks, with "loyalty" now centered on online/offline touchpoints. As consumers choose between streaming entertainment on their connected devices, movie theaters need to extend their presence on digital channels to remain relevant.

Loyalty rewards in the form of digital tokens can help retailers by stressing the value of being a regular customer who gets a first look at new products.

From gamification to artificial intelligence-based personalization, this is a crucial moment for the retail industry to reinvent its loyalty programs. Loyalty aside, retail is a naturally immersive experience. But stores haven't quite figured out what to do with the spaces they have.

For example, department store windows at holiday time can conjure a vivid shopping fantasy that draws people inside. But once the shoppers enter, the blandness of white walls and oppressive lighting does so much to dampen the mood. How can stores get that good feeling back?

A retail redesign

The concept of the store as merely a place to purchase goods is evolving. Leading retailers are redesigning their physical spaces to function as showrooms that offer a taste of the brand's ethos. These redesigned spaces are not just about displaying products; they are about creating an environment that tells a story, engages the senses, and makes the customer feel like they are part of something exclusive and exciting.

Take, for instance, the recent strategic moves by Under Armour. Under the guidance of CEO Stephanie Linnartz and John Varvatos, the brand's new chief design officer, Under Armour stores are set to undergo a design overhaul. This initiative isn't just about aesthetic appeal; it's about embedding a new culture of design-led thinking into the brand.

Linnartz emphasizes that this transformation is more than a design do-over; it's a strategic move to enhance the brand's presence in the wholesale channel and give retailers a compelling reason to stock Under Armour's products.

This kind of product and design change is essential for brands to clarify their market position and improve their product assortments and restart their relationship with consumers.

Personalization: The key to modern customer engagement

In today's retail environment, personalization is no longer a luxury; it's a necessity. Retailers are leveraging customer data to offer personalized experiences — from tailored product recommendations to customized services. This approach is about acknowledging the individuality of each customer and catering to their specific needs and preferences.

As the retail landscape continues to evolve, the focus shifts from mere customer acquisition to creating memorable, event-like experiences in-store. This approach not only attracts foot traffic but also builds a deeper connection with customers, turning occasional visitors into loyal brand advocates who come to a store to be entertained and surprised..

Retailers who embrace these elevated expectations by focusing on personalization and experience, will be the ones to set new standards in the industry while forging new loyalty with their customers.