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Please find examples or case studies of innovative approaches to retail experiences
Hello! Thank you for your question about innovative approaches to retail experiences. The most useful sources I found for completing this project came directly from the National Retail Federation (NRF) and Forbes. The short answer to your question is that the most innovative and successful retail strategies involve the application of both psychology and creativity to maximize on two main areas: relationship and relevancy. Most innovations in retail are taking place through the application of creativity, brand strategy, modern technology and/or personalized approaches to relationship building. In my dive deep below, I have compiled a list of 10 strategies/case studies involving innovative and unique retail sales strategies. In the summation of each case study I have included all available ROI figures and additional market details explaining the thought process behind the strategy and why it works.
METHODOLOGY
Our team began the research by looking for award-winning innovations in the retail space. Unfortunately, most of the results from this portion of my research pointed to online retailers. From there, we began looking for collections of successful retail strategies for market authorities. It was through this strategy that we came upon the National Retail Federation. Using their database, we were able to individually research each of the mentioned campaigns for more specific detail.
CASE STUDY ONE – KOHL'S/LAUREN CONRAD COLLECTION
Key strategy – Give potential customers an insider's view.
Lauren Conrad is an actress turned clothing designer who debuted a collection for Kohl's at Fashion Week in September 2015. Kohl's capitalized on Lauren's massive social media presence, noting that she maintains nearly 11 million followers across several social platforms. They benefited by using her social platforms to issue invitations to a live stream of the fashion show, even offering them backstage sneak peeks and an opportunity to experience Fashion Week from the designer's perspective. Using periscope, attending viewers could make comments live and chat. But not only that, they were also afforded the opportunity to shop. The items seen on the runway were made immediately available for purchase online.
Why it works – Presumably, this method worked very well because attendees felt as though they were part of the action. By getting personal, offering the feeling of exclusivity, then capitalizing on the existing credibility and trust levels followers have with Lauren Conrad herself, Kohl's was able to shorten the consumer decision-making process dramatically.
CASE STUDY TWO – VERA BRADLEY
Key strategy – Show appreciation, keep it personal.
Barbara Bradley Baekgaard, CEO of Vera Bradley, has maintained this specific retail principle throughout her career as a handbag, luggage and accessories retailer. She believes that retailers sell themselves first. She states, "business is all about forming relationships and having a company that reflects your values."
Her strategy includes starting at home. From the founding of the company until now, those in leadership positions at the company put $50 in cash in a birthday card for employees. Even having as many as 3000 employees, Bradley Baekgaard believes the action of using cash is more meaningful.
The end result – utilizing this strategy in the long term has quickly catapulted to Vera Bradley sales to an impressive $509 million annually.
Why it works – Exhibiting appreciative values in general and showing appreciation to staff ultimately creates a more positive working environment, which will translate into more sales, because passionate and positive staff means a positive shopping experience for customers.
CASE STUDY THREE – FAIR FOLKS & A GOAT
Key strategy – Building lasting customer relationships with innovative memberships.
New York coffee shop Fair Folks & a Goat is capitalizing on the 'neighborhood coffee shop' feeling by turning it into an exclusive club. The shop, which opened in 2012, is based on a membership model (like gym membership), but instead for coffee. $25 a month gets members all the lemonade, coffee or tea they can drink. The 'membership cafe' even offers beer and wine and sells clothing, art and home decor.
The end result - while there is no readily available revenue information for this establishment, the coffee shop has earned a four star review on Yelp and has received numerous accolades and positive reviews in the press.
CASE STUDY FOUR – TARGET STORES, SHOP THE FORCE
Key strategy One – Build community by using stories to highlight shared memories.
Key strategy two – Capitalize upon cultural phenomenon.
When Lucasfilm was preparing to release Star Wars: episode VII – the force awakens, leadership at Target hosted a 'shop the force' event to aid in the promotion. The store sold toys, clothing and additional Star Wars related items beginning at midnight on September 4, capitalizing on the cultural phenomenon surrounding the release date. Target also offered an experience they called 'share the force' in stores and online.
The end result – The results of the campaign were so successful that target chose to revive the campaign for the release of the film Rogue One.
The end result – December sales in signature categories such as toys grew nearly 3 percentage points faster than the company average. At least part of the success the Target store enjoyed can undoubtedly be attributed to the marketing push in support of the Star Wars films.
CASE STUDY FIVE – NORDSTROM
The upscale retailer Nordstrom, has been accused of playing it safe where new tech is concerned. However, this accusation fell by the wayside in 2015 when Nordstrom conducted a 3-D installation of an integrated post, depicting its Leith leopard, print bodycon dress. The installation was designed to look like an Instagram post, to celebrate its anniversary sale.
The project took place on the rooftop of the organization's flagship location in Seattle. The image depicted a 55 foot version of the leopard print dress and included a real-life woman wearing the dress, walking across the roof. The installation was filmed by drones and published by a live feed on social media. The company also added a time lapse video of the installation to be shared on Instagram.
The end result – While this is social media campaign likely will not resonate with Nordstrom's typical upscale clientele, the organization is looking to the future, and developing relationship with the next generation of Nordstrom customers. Nordstrom's annual revenue has climbed from $12.15 billion in 2013 to $14.44 billion in 2016.
Why it works – This campaign worked because it's different from the typical Nordstrom modus operandi, yet more in keeping with millennial trends. Campaigns like this will ease the transition between each generation of customer and keep Nordstrom, who are most known for affluent clientele who are attracted to a traditional shopping experience, relevant and fresh for their future millennial clients.
CASE STUDY SIX – WHITE HOUSE BLACK MARKET
Key strategy one – Create an expanded view of social media.
Key strategy two – Maintain brand consistency.
Key strategies three – Capitalize on the familiar/popular.
White House Black Market constructed a full scale social media campaign built around the popular song "Drums Make You Happy" by Marissa Jack. The song itself maintained an alignment with the retailers brand presence, which is focused on individuality, and as such the campaign made sense.
The social media campaign included YouTube, and White House Black Market used a shortened version of the YouTube video as a television ad. The company used the hashtag "#BeatofYourDrum " to highlight the individuality of various women. The hashtag then became prominent in the retailers digital and television ad campaign. The company also included a contest with the campaign, enticing people to participate with the hashtag.
The end result - Even though the campaign only ran for a few short months in 2015, the results of the campaign are still being felt over a year later. The hashtag has not died and White House Black Market has experienced increased growth since the campaigns initiation. The company earns more than $66 million in revenue annually.
Why it works - The celebration of diversity and individuality has become a mainstream topic in recent years. White House Black Market is capitalizing on this theme in order to create a movement that celebrates individuality among women. This works because it is in keeping with the current pulse of the familiar and popular, while also adhering its existing brand marketing standards.
CASE STUDY SEVEN – ALTON LANE
Key strategy one – Create an experience for shoppers.
Key strategy to – Be aware of consumer psychology cues.
Alton Lane is a premium tailored apparel retailer that has recently become known for innovation in bespoke menswear. Alton Lane is taking strides to ensure that the shopping experience, which takes place in a 'showroom', is highly engaging. The company CEO Colin Hunter says, “We want our team to be observant hosts and hostesses, so we try to pick up on the small cues that naturally come up in conversation.” Shoppers are invited to have a drink and engage in conversation naturally.
The retailer also uses NetSuite integrated customer relationship management software in order to ensure client data is on point. This allows team members to maintain relational prowess when it comes to client retention. Colin Hunter considers the integration to be a "game changer" which allows the retailer to track and access data with relative ease.
The end result – Sticking to this strategy and maintaining continuity in the process of expansion has resulted in rapid expansion for the retailer (founded in 2009); to the tune of current annual revenues that are over $6 million.
Why it works – customers still appreciate a personalized shopping experience. Relationship maintenance is one of the key factors in developing client continuity and ensuring the longevity of a retailer/client relationship. By using a relationship building approach to customer service, coupled with efforts to create not just a trip to the store, but an exciting and comfortable "experience", customer acquisition and retention becomes a lot easier.
CASE STUDY EIGHT – THE DANDY LAB
Key strategy one – Take advantage of high-tech opportunities.
Key strategy two – Incorporate a story.
The Dandy Lab has chosen to use Cisco's iOT technology and additional software to maximize the shopping experience. In short, the retailer is taking advantage of the consumers affinity to the story behind their purchases. The customer can place products on a communication terminal that will display the story behind the brand on a flat screen nearby. The flat screens are table sized and embedded into the walls of the store, displaying pricing data along with other product details. The screens even offer advice on additional items that might pair well with the product, or clash with it.
The end result – The Dandy Lab was founded in 2014. From the moment of deciding to capitalize on the tech space, they have seen a social media increase of 30% and store visits increased by 300%.
Why it works – Because we live in a technology driven society, The Dandy Lab's choice to make more of the tech aspects of their shopping experience has created a 'playground' for retail. Customers now flock to the stores for the high-tech experience alone.
CASE STUDY NINE – LI NING COMPANY LIMITED
Key strategy – Redefine the showroom
Li Ning, which was named after its founder (a well-known Chinese Olympic gymnast), changed the game by incorporating physical showrooms where consumers are allowed to steal the products, touch the products, but not buy the products.
The showrooms make it possible for consumers to experience the products, but are then required to follow through with the process only by online purchasing. The company moved to online only purchasing as a strategy to overcome financial losses. As a result, the brand has thousands of bricks and mortar locations, but they distribute goods from one single warehouse.
The end result – This strategy resulted in the equivalent of $3.5 million worth of sales in its first month alone.
Why it works – this strategy works because it allows for the best of both worlds. Not only do customers get to have the physical shopping experience, but the retailer maximizes on costs across the board.
CASE STUDY TEN – HY-VEE GROCERY
Key strategy – Take advantage of "months/weeks/days."
Hy-Vee grocery designed a campaign known as Family Meals Month, which was designed to solve the age old family dinner dilemma; someone has to plan and cook the meal. As part of the campaign, a Dinner Crasher will select one family happen to be shopping in a selected store and 'crash' their dinner. The Dinner Crasher, who is also a Hy-Vee chef and dietitian, would create a custom weeknight dinner experience for the chosen family.
Once the family is selected, preferences and dietary needs are discussed and the crash experience takes place later in that same week. Taking advantage of a specific theme (day/week/month) helps to build relationship and bolster customer retention.
The end result -- The Dinner Crasher experience is still relatively new, but it has made a big difference for local Hy-Vee stores and the foot traffic the stores receive during Family Meals Month.
Why it works – this campaign promotes community and relationship, while also making the grocery shopping experience a little more exciting. Families are more likely to shop together during Family Meals Month if they have an incentive that could result in a special experience. Because the campaign is sponsored by local grocers, community buzz maximizes the trust and credibility of the organization.
CONCLUSION
To wrap it up, innovations in retail are taking place through the application of creativity and modern technology and/or personalized approaches to relationship building. Each of the above organizations has had a unique approach to building relationship and relevancy by incorporating creativity and/or technology into specific marketing campaigns or brand strategies.
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