Can Experiential Retail Be Too Experiential, And Not Enough Retail?
Experiential retail has been a hot industry buzzword in recent years, as brick-and-mortar stores scramble to find ways to drive traffic, whether in the form of events, entertainment or even technology-based experiences in VR and AR. But a successful experience is one that remains consistent with the brand’s values, and also is designed not just to drive shoppers into a store but also to encourage them to buy (either during the event, at a later visit or online).
Betabrand’s recent introduction of a weekly “Podcast Theater” in its San Francisco store that hosts podcasts in front of a live audience demonstrates one of the ways retailers can go outside the box to attract consumers. But the question remains: is it too far outside the box?
The RTP team discusses what makes experiential retail initiatives an effective brick-and-mortar strategy, and shares whether they believe the “Podcast Theater” will deliver positive results for Betabrand.
Adam Blair, Editor: You wouldn’t think people would flock to a retail store just to sit and watch people talk into microphones (although if old movies are to be believed, radio shows once played to live studio audiences, in the Department of Everything-Old-Is-New-Again). But hats off to Betabrand for drawing three to four times their normal weeknight crowd to their San Francisco store by hosting podcast tapings. I’m not totally sure this counts as “experiential retail” so much as “advertising/promotion aligned with the store’s yoga-pants-selling vibe,” but I’m probably being too picky. Building awareness — particularly among a group of people who are either current or likely customers — is a Retailing 101 basic. And in-store retailing is, at its heart, about bringing people together into a community. I do hope that at some point, somebody attending the tapings buys something from Betabrand. I’m sure at least a few of them do.
Glenn Taylor, Senior Editor: I’ll admit that the Betabrand story did catch my eye, on the grounds that it was simply something I hadn’t seen before. If there’s one thing about retail that a lot of companies fail to do effectively, it’s standing out. I bet there are A/V equipment retailers or even a retailer like Barnes & Noble that wished they had done something like this first, especially given that B&N would have had the cachet to bring in bigger names and draw bigger crowds. Experiential retail decisions like this can seem gimmicky, but if the store’s merchandise gets solid promotion, I see this being a win. If anything, experiences like this can go a long way toward establishing a community, which today is just as important in building brand identity as any other factor. One note about community-building: I think location is a very underdiscussed (at least in analyst circles) subject. The reason why modern, successful malls are changing into “experience centers” is because today’s shoppers need more than products and a dingy food court to be satisfied with their shopping trips. Strip malls are no different. Ideally, they are located in well-traveled areas. Even if the stores within them don’t carry an extensive product line, if they provide an interesting experience, they would still be near enough to other businesses/theaters/gyms to attract an overflow of curious potential shoppers. It’s much easier to pull off events in locations with a bunch of people walking through the town center than trying to do the same thing in a fading C-class mall.
Bryan Wassel, Associate Editor: The beauty of experiential retail is that anything can be an experience, and as pop-ups and in-store celebrations become ho-hum, I expect retailers looking to catch the eye of busy shoppers to get more esoteric. Book signings and celebrity appearances were mainstreamed decades ago, and even more “modern” experiential draws risk becoming commonplace. On the other hand, smart retailers know that the events themselves are only part of their value: they are also about building awareness via media coverage and social media buzz. Because no one has tried taping a podcast in a store before, people looking for something one-of-a-kind, or at least new, will turn to this sort of experience — at least for now. In a couple of weeks that, too, will be old news, and retailers like Betabrand will need to roll out new and fascinating experiential programs to get feet into their stores.