I agree with Dr. Fader: in-store experiences is an overused term that is easily matched or subject to habituation. Retailers need to make sure the experience is not unpleasant. It would make for an interesting test by a retailer — a retailer could create experiences in one set of stores and not in another comparable, isolated set of stores and see whether sales increase in the set with the experiences.

A great in-store experience is one that ends in a sale. Focusing on data and analytics to better understand customer behavior is critical, and I agree with the professor that retailers need to do more on this front. However, the professor is over-generalizing what in-store experiences are and minimizing how store experience helps create conditions that result in satisfied shoppers making a purchase. Creating a great in-store experience at Costco is a very different proposition than an Apple store and every retailer needs to understand what’s important to their customers.

I agree completely, but he’s also right about most retailers being risk averse and uncertain as to how to best leverage data and analytics to improve individual shopper outcomes. Over the past several years retailers have rushed to acquire a lot of Big Data and analytics technology without a clear plan for accelerating development and operationalization of business-focused use cases. There is an art to this process that hasn’t played out at scale in most retailers, but must if analytics are to help retailers execute profitable and differentiated in-store experiences.

There is no pat answer. Strategies in retail should and will vary with the product category. Some categories will benefit from the in-store experience (remember if you can the department stores of old: the glamour, the assortment and the service). Other categories will be the domain of the online retailer. As the author points out, shopping for some things is a ho-hum event. Data analytics will play a part but getting customers into the store is more closely related to the shopping experience.

Data will give you a better understanding of the customer. You can use that data in numerous ways, one of which is contributing to the customer’s in-store experience. So it’s not a choice. The retailer that takes advantage of both may have a better chance of winning that customer’s business, both in-store and online.

Dr. Fader has some very valid points. However the level of multi-sensory experiences the customer expects clearly depends on the type of retail establishment. Data and analytics most certainly can drive personalization and curated assortments, yet the most critical component in the shopping journey is to remove friction and pain points that could lead to diminished customer loyalty or, ultimately, losing the customer to another brand. The new and innovative showroom-like hybrid retail model works extremely well, as it’s fully integrated with mobile and desktop apps and profiles. They have one view and perspective of the customer which really resonates, as the showroom serves as the testing ground, experience-first focus, and the “guides” serve as the closers — so to speak — to help drive the conversion and cultivate long-standing relationships. Yet this entertainment-first model doesn’t have to be applied to the entire retail industry. This would not work, and is not a critical component with a commodity, basics-like business. In this scenario, data and analytics can effectively drive inventory optimization across channels which will… Read more »

As a society we are going through a major trend wherein “experiences” are increasingly more valued than material possessions. When you can connect emotionally to a physical product and wrap it in a personalized experience, then you’ve done three things: differentiated yourself from the competition, desensitized the price lever and validated your customer’s decision to make you part of her life.

It’s a false dichotomy that forces you to decide between data analytics OR experience. Consumers value uniqueness, exclusivity and personalization. Creating excitement in a store environment separates you from online-only competitors. On the other hand, advanced analytics are a must for retailers to engage consumers with relevant, personalized and insightful context-aware communication across devices and channels. This type of personalization is key to having your customer self-identify with your store and brands.

Apparently I don’t want an interesting and engaging experience when I go retail shopping. What I really want is for that retailer to “have a deep understanding” of me. Do I have that right? You know, I’ve come out of a lot of shops being impressed with the range of inventory and how informed and helpful a salesperson was or what a good deal I got. But I’ve never come away thinking “Boy, did they ever have a deep understanding of what my life is all about.” Are most retailers risk adverse and set in their ways? Duh. That’s about the only comment I’d give a nod to. Professor Fader says you can’t “wow” everyone en masse, though that is exactly what Big Data efforts try to do. “Individuality” in the Big Data world is a myth. So how, exactly, is a store going to show a deep understanding of my needs? The local Hyundai dealer is having a “Big Tent” promotion with balloons, special t-shirts and lots of fan fare. I dropped in to… Read more »

Experiences are indeed the future of the store. However, we must avoid experience innovation for innovation’s sake. We must seek to develop experiences that move the customer toward marketing’s “Holy Trinity” of mind share, advocacy and conversions. The professor answered this question himself when he stated, ” … a better strategy for retailers is to focus on data and analytics: to understand their customers’ lifetime value and find ways to make the in-store experience better for individuals who are more valuable to the business.”

His critique of the “experience” theory is excellent. However, I was disappointed that his recommendation to replace it was tactical and not strategic.

We need to stay focused on the critical issue: People need to WANT to shop at your store — for whatever reasons are important in your category and your role in their lives.

In general that means a good array of basic product you need, making products easy to find, having some surprises (deals, interesting new products), a good experience with the store layout, displays and the right interaction with your store help (not invasive, but helpful when needed, etc).

Data and customer value are critical — but only when they enhance or come through the fundamentals. In and of itself, data analysis will not make retail succeed. Shopper satisfaction comes from product (the right mix), price (the right strategy) and people (those who staff your store).

I tend to agree with the Wharton findings. The noted consideration is a sustainable differential advantage. Grocery stores have an opportunity to positively differentiate themselves from the online competitors by being the best in the following areas: fresh, local and customer intimacy.

There is no silver bullet to fixing retail. That is such a generic overstatement given the size of the industry and different types of offerings. I agree with Dr. Fader to question the ultimate payoff of experiences — asking about ROI is critical for all retail initiatives. It should not be about “Shiny Object Syndrome” but about understanding YOUR customer and what motivates them to buy, then going after that.

Call me old-fashioned, but numbers alone are not the answer. A good store experience is one where customers are glad they are in the store and don’t hesitate to come back. What does it take to make that happen? Well, find out where shoppers are glad and where they’re not, where it matters and where it doesn’t.

Yes the answers can be in the data, but the kind you gather from speaking with customers and non-customers, not from previous transactions alone. It’s a blending of what information you have and what you still need to get the understanding that contributes to effective strategy and tactics.

Yes in some cases, like the quick in-and-out purchase, it seems unlikely that the “store experience” matters … unless the experience focuses on helping the shopper get in and out quickly.

To gain the most from this discussion, we need to distinguish between contrived store “experiences” (like digital mirrors or glasses of champagne) and the “shopping experience” (where things happen as they should according to the purchase objective).

Finding the desired items available for sale is a positive shopping experience. Waiting a minimal time to check out is a positive shopping experience. Visiting a clean restroom, when needed, is a positive shopping experience. Assistance from a capable, knowledgeable, pleasant sales associate is a positive shopping experience. You probably get my point by now.

Many of these experience wins are derived from highly competent systems, practices, and people. Many are enabled by excellent data management tools. Having the right items consistently available for sale begins with data management, for example.

Prof. Fader is spot-on when he calls out some unique experiences as wallpaper over a cracked facade (my words, not his). I’m not sure that advanced analytics represent the only alternative, but I do believe retailers must deliver great shopping experiences by mastering the fundamentals.

Best in-store experience? Simple! A customer walks out with a product they love and are very excited to have found. How to do this? Merge customer purchase history with technology to spit out in-store individualized preference based product recommendations. Singing and dancing will not make a customer happy. Get the customer what they want. And of course, be true to the tenets of your brand.

We believe the in-store experience remains an opportunity of differentiation for many types of retail brands — specialty, luxury, niche, etc. Customer intelligence via data and analytics should be recognized as one increasingly important layer toward delivering a positive, memorable or even emotionally-engaged experience, however the data piece is just that — one piece of an overall strategy and vision.

Being intentional in creating the in-store experience is also important, by ensuring store associates are equipped with the proper training, resources and engagement capacity to acknowledge, relate to, assist and thank customers based on each customer need state — essentially personalizing the experience by customer through a framework associates can understand.

The store is not dead and the customer experience matters! Consumers love the theater of shopping and that is why pure-play online retailers are starting to open brick and mortar stores. While the in-store experience is not as important for commodity products, it is extremely important and relevant for apparel and other products consumers want to touch, feel, demo or try on. Providing the same experience for all customers is not a differentiator. However, personalizing the experience based on analytics and “customer context” to create a unique, personalized experience for each customer is a differentiator. BRP defines customer context as “the interrelated factors of customer insights and environmental conditions that make the shopping experience relevant.” With advances in technology (networks, WiFi, mobile, NFC, Beacons, etc.) retailers have the ability to access more customer information than ever before and in real-time. Retailers have the ability to know what a customer has in her closet, what she previously purchased, what she browsed on the Web site and abandoned in her online cart, when she is near your… Read more »