- What is your favourite example of a retailer using experience to add value for its customers?
When I was 16 I worked in a camera shop - I was and still am very much into photography - but it wasn't just about shifting boxes. We had an onsite studio where sessions would be held to show people how to use lighting and and appropriate equipment for portraits etc., and we also had a photo darkroom (this was pre digital) where customers interested in processing their own film/prints could be shown the basics.
Both were obviously good ways of generating more sales as well as being fun for staff and customers!
Another example I can think of is Evan's cycles who used to run occasional bike maintenance workshops in the stores in the evenings as well as organise bike rides at weekends (they don't seem to do these now under Sports Direct ownership). However, Evans went into administration which brings me onto another point - how many customers really value service? The key word being value.
We all like great service and places that offer something more like the examples above, but it appears that the majority will still go to buy where a product is cheapest. How many will visit a local store to view products, get advice and information then walk away and buy the cheapest one they can find online? These same people will no doubt moan about the decline of their local high street when they can no longer go to those local shops for advice!
Unless more people are prepared to value great service, and therefore making it viable, the decline we're seeing will, I think, only continue.
Great examples, James, and thanks for the camera shop memories in particular. The "but it went into administration anyway" point is absolutely central, I think. Either we are doomed to end up in a world where only online warehouses exist or else we need to differentiate the retail experience in the ways your examples illustrate. Yes, many brands have fallen by the wayside but the existence of successful retail models based on retail theatre and experience (Lush, Games Workshop and more) suggests to me that there is an abiding consumer demand for something more than "people who bought this also bought this".
Really enjoy reading these Ian! And isn’t creating an engaging/memorable/fun (🤯) customer experience the best bit for the Marketing dept as well as the customer?! Not just transactional, an event mentality that you can’t get from just scrolling 👏 hope all is well. C
A great post to start your mega-trends with. I have three thoughts bubbling straight up.
1. I agree that a central driver of this is 'the experience economy'. I think there is some of 'the average is always wrong' going on here, with people looking to shop for value in much of their daily lives (fuelling the rise of Costco, Poundland, Aldi, etc.) and looking for good experiences at other times (hence the rise and survival of cafes and restaurants and town centres trying to make themselves over away from strips of the same chain stores).
2. For Paperchase, I fear they got caught in the middle. For cheap stationary, it's better to go online or to a high street discounter (even Poundland will sell you something tolerable). For something customised to the precise quirks of your friend or relation, then you go online to Red Bubble or such like and find a card and type in their interests and it finds 10 things that great graphic artists have designed. I'm into bikes and space, so my daughter typed in 'cycling, spaceman, T-shirt' and I received for my birthday a great T-shirt with a cycling spaceman (defying several laws of Physics, but looking good!)
3. The masters of 'customer engagement retail, I will nominate Games Workshop, the board game specialists who for decades have run gaming and figure painting sessions in their stores. They do this from intro to advanced levels and they hire the right people to deliver them. I could go on... It's built a sustainable following, brand and business.
Thanks Robin, really thought-provoking. The 'caught in the middle' observation about Paperchase is bang on, but I wonder how they could have jumped into the digital/online customisation trend in a way that benefited the stores and demonstrated the value of omnichannel?
And yes, I love Games Workshop as an example of retail experience, and not just because I'm a massive nerd!
Great post Ian. When it comes to experience - it's clear retailers need to ensure that basics are covered - good range of products (inc. what is advertised is available), good value, pleasant and engaging environment. Paperchase was about stationary - and range limited. People don't buy stationary or cards etc much. It was a product range that was fit for the 80s and 90s - but not now - easier to buy through Amazon. Hobbycraft is about creativity. It has a much bigger range. Its location strategy is a massive part of that (as you say out of town). Event activity is nice but if the fundamentals of stock choice aren't there - one off events etc are never going to deliver necessary return. For supermarkets I've found that the counters are generally side shows - limited choice - and very little difference in the core product compared to what's already to go on the shelves - no clear value add. Counters can provide theatre but there needs to be a clear point of difference - a clear value proposition - such as clearly local product eg. Borough Market, Farmers Market etc. or super fresh food and always on opportunities to test or learn about getting the most out of products on sale.
Good point Paul - I don't know if the space constraints of being in town meant that Paperchase could never have pulled of a more experience-based retail offering, but I certainly agree that Hobbycraft have made the most of their starting position - the one I visited before Christmas was rammed.
I worked for a retailer selling beds. We invited the sleep expert working for Vi Spring to come come in and give his thoughts on life and Beds. The turnout was limited but the publicity was good, but could have been betterI had previously seen him at the Vi Spring factory and he had been very entertaining. I think that sometimes though retailers do not see the value of these events but the more you can arrange the more publicity you can garner. I think it was most probably easier for Hobby Craft to do these events, whereas the Paperchase stores/concessions are/were quite small. I can imagine the advertising of these events created a lot of interest in Hobby Craft
- What is your favourite example of a retailer using experience to add value for its customers?
When I was 16 I worked in a camera shop - I was and still am very much into photography - but it wasn't just about shifting boxes. We had an onsite studio where sessions would be held to show people how to use lighting and and appropriate equipment for portraits etc., and we also had a photo darkroom (this was pre digital) where customers interested in processing their own film/prints could be shown the basics.
Both were obviously good ways of generating more sales as well as being fun for staff and customers!
Another example I can think of is Evan's cycles who used to run occasional bike maintenance workshops in the stores in the evenings as well as organise bike rides at weekends (they don't seem to do these now under Sports Direct ownership). However, Evans went into administration which brings me onto another point - how many customers really value service? The key word being value.
We all like great service and places that offer something more like the examples above, but it appears that the majority will still go to buy where a product is cheapest. How many will visit a local store to view products, get advice and information then walk away and buy the cheapest one they can find online? These same people will no doubt moan about the decline of their local high street when they can no longer go to those local shops for advice!
Unless more people are prepared to value great service, and therefore making it viable, the decline we're seeing will, I think, only continue.
Great examples, James, and thanks for the camera shop memories in particular. The "but it went into administration anyway" point is absolutely central, I think. Either we are doomed to end up in a world where only online warehouses exist or else we need to differentiate the retail experience in the ways your examples illustrate. Yes, many brands have fallen by the wayside but the existence of successful retail models based on retail theatre and experience (Lush, Games Workshop and more) suggests to me that there is an abiding consumer demand for something more than "people who bought this also bought this".
Really enjoy reading these Ian! And isn’t creating an engaging/memorable/fun (🤯) customer experience the best bit for the Marketing dept as well as the customer?! Not just transactional, an event mentality that you can’t get from just scrolling 👏 hope all is well. C
Totally agree! Thanks Chloe
A great post to start your mega-trends with. I have three thoughts bubbling straight up.
1. I agree that a central driver of this is 'the experience economy'. I think there is some of 'the average is always wrong' going on here, with people looking to shop for value in much of their daily lives (fuelling the rise of Costco, Poundland, Aldi, etc.) and looking for good experiences at other times (hence the rise and survival of cafes and restaurants and town centres trying to make themselves over away from strips of the same chain stores).
2. For Paperchase, I fear they got caught in the middle. For cheap stationary, it's better to go online or to a high street discounter (even Poundland will sell you something tolerable). For something customised to the precise quirks of your friend or relation, then you go online to Red Bubble or such like and find a card and type in their interests and it finds 10 things that great graphic artists have designed. I'm into bikes and space, so my daughter typed in 'cycling, spaceman, T-shirt' and I received for my birthday a great T-shirt with a cycling spaceman (defying several laws of Physics, but looking good!)
3. The masters of 'customer engagement retail, I will nominate Games Workshop, the board game specialists who for decades have run gaming and figure painting sessions in their stores. They do this from intro to advanced levels and they hire the right people to deliver them. I could go on... It's built a sustainable following, brand and business.
(I think this example is in your book too, Ian.)
Thanks Robin, really thought-provoking. The 'caught in the middle' observation about Paperchase is bang on, but I wonder how they could have jumped into the digital/online customisation trend in a way that benefited the stores and demonstrated the value of omnichannel?
And yes, I love Games Workshop as an example of retail experience, and not just because I'm a massive nerd!
Great post Ian. When it comes to experience - it's clear retailers need to ensure that basics are covered - good range of products (inc. what is advertised is available), good value, pleasant and engaging environment. Paperchase was about stationary - and range limited. People don't buy stationary or cards etc much. It was a product range that was fit for the 80s and 90s - but not now - easier to buy through Amazon. Hobbycraft is about creativity. It has a much bigger range. Its location strategy is a massive part of that (as you say out of town). Event activity is nice but if the fundamentals of stock choice aren't there - one off events etc are never going to deliver necessary return. For supermarkets I've found that the counters are generally side shows - limited choice - and very little difference in the core product compared to what's already to go on the shelves - no clear value add. Counters can provide theatre but there needs to be a clear point of difference - a clear value proposition - such as clearly local product eg. Borough Market, Farmers Market etc. or super fresh food and always on opportunities to test or learn about getting the most out of products on sale.
Good point Paul - I don't know if the space constraints of being in town meant that Paperchase could never have pulled of a more experience-based retail offering, but I certainly agree that Hobbycraft have made the most of their starting position - the one I visited before Christmas was rammed.
I worked for a retailer selling beds. We invited the sleep expert working for Vi Spring to come come in and give his thoughts on life and Beds. The turnout was limited but the publicity was good, but could have been betterI had previously seen him at the Vi Spring factory and he had been very entertaining. I think that sometimes though retailers do not see the value of these events but the more you can arrange the more publicity you can garner. I think it was most probably easier for Hobby Craft to do these events, whereas the Paperchase stores/concessions are/were quite small. I can imagine the advertising of these events created a lot of interest in Hobby Craft