Consumer preferences are constantly changing for a variety of reasons. The main cause of this change is generational change. As a result, retailers need to change to keep up with changing customer needs. In fact, more and more companies are moving from the concept of selling things to the concept of “selling” experiences and calling it experiential commerce. So, keep reading to understand the rise of experiential commerce better.
Explaining Experiential Commerce’s Rise
Unlike previous generations, millennials are not materialistic. According to an Eventbrite study conducted by Harris Poll in 2014, 78% of them prefer to spend money on desirable events or experience over desirable objects. Globetrotter stores in Germany have also incorporated this into their business strategies. For example, they created a place where you can come in and hop in the rain, paddle a canoe, climb the walls, etc.
In addition, many fashion stores are now fully equipped with VR/AR tools. Thanks to that, they allow you to see how you would look wearing one of their outfits. For example, Warby Parker offers an AR tool that lets you see what your face would look like wearing their glasses. In general, by focusing on experiences instead of selling things, retail stores are likely to attract the most demanding customers.
But, it will not be easy for e-commerce companies to achieve this type of connection with customers because they have no physical touchpoints. That is why pure e-commerce companies like Alibaba, Amazon, Warby Parker have opened physical stores or invested in companies with an offline presence.
How to Be Successful in Experiential Commerce?
When it comes to experiential commerce, you have to consider several components that can improve your approach to experiential commerce. The reality is that many retailers have come up with very innovative approaches to customer acquisition and retention.
The best way to show buyers how your new product suits them is to let them experience it for themselves. For example, if your store sells children’s toys, it’s wise to let the buyer’s children play with them.
It is essential to implement multiple physical touchpoints with buyers. As a result, you’ll have more opportunities to show buyers how your other products can enhance, change, or improve their lives.
For example, you can implement VR/AR tools for your clothing store. By placing new products in the context of the buyer’s lifestyle, you can get the buyer to make a purchasing decision.
As buyers are immersed in your in-store experience, an emotional connection is built, which encourages them to come back and tell their loved ones about the experience. However, this emotional connection only emerges if they receive a great shopping experience.
Nowadays, buyers tend to look for a personalized shopping experience, and experiential commerce is the perfect tool for providing this unique experience to buyers.
Through sophisticated software systems and behavioral analysis tools, you can source and store buyer information when visiting your offline store or website. Then you can make some unique personalization ideas, such as printing the customer’s name on the product.
It is true to say that an inspired buyer is a happy buyer. For example, Saks inspires its customers by creating unique experiences for them to feel how this company can affect their lives.
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In general, experiential commerce is becoming a trend for offline retailers, although this is not obvious. Hopefully, this trend will become more popular to enhance our lives and enrich our experiences in the future.
Use ConnectPOS services to stay ahead of other retailers. If there is any question, do not hesitate to contact us now!