E-books didn’t kill paper books. Streaming didn’t kill vinyl or CD’s. And online shopping certainly hasn’t killed bricks and mortar retail.
On the contrary, the most successful retailers have actually expanded their physical footprints to accommodate what economists tell us is the “experience economy”.
Customers expect physical stores to offer more than just a place to buy things. They want to touch, feel, and interact with products in ways that online shopping can't replicate.
This shift has changed the way retailers think about stores, turning them into spaces for engagement rather than just transactions.
And while we admire the enthusiasm to implement new in-store ideas, in many cases, not enough time is spent thinking about whether or not they will work for customers.
So how do you know if your idea is good or not?
Think like the customer thinks.
This is a fundamental philosophy of our agency, and we live by it every day.
We ask four questions of any idea, initiative or concept intended for the store environment.
1. Do customers want it?
Responding to customer demand shows you’re listening to your audience. The introduction of Click & Collect pick up options was almost certainly driven by customer demand for more flexibility. If there’s a clear demand, it's often a good indicator that an idea will resonate with customers.
2. Do customers need It?
Pre-empting customer needs is a great way to create a positive impact and gain a competitive advantage. The introduction of child-sized trolleys in supermarkets were a godsend to customers struggling with unruly toddlers, and greatly improved everyone’s shopping experience.
Did customers ask for it? No. Did they need it? Absolutely!
3. Do they like it?
We’ve all had ideas that sounded brilliant in the boardroom. But whether we like it is irrelevant. More importantly, does the customer like it (and how will you know?).
Innovation comes at a price, so trialling a new idea in one or two stores first is a good way to gauge the response.
A few years ago, we partnered with Keells supermarkets in Sri Lanka to develop a brand overhaul and create new store formats. One idea we were keen to implement was a feature display in the form of a tuk-tuk.
Customers didn’t ask for it and they didn’t really need it, but they loved it anyway.
It was surprising, fun and didn’t get in the way of their shopping journey.
Wood-fired pizza ovens in supermarkets is not exactly groundbreaking, except when it’s turned into a disco ball at Marks & Spencer.
Customers loved this deliciously simple, yet highly effective touch of theatre, which elevated their experience of the entire store.
Not everything has to be a necessity. Some ideas succeed because they are simply fun, visually engaging or just unexpected.
4. What’s the ROI?
When looking at any new idea for your business, it’s important to figure out what the real payoff will be. Will it boost profits or sales? Will it add value to your brand? Think about whether the idea directly impacts customers or works behind the scenes, and how it might help overall business growth.
It’s also helpful to consider who it appeals to—does it have broad appeal, or will it only matter to a smaller group of your customers? Maybe the biggest benefit isn’t financial but how it shapes the perception of your brand. Can the ROI be measured and how long before you start seeing results?
The story of Digital Shelf Edge Ticketing is an interesting example of where ROI is still playing a big part in its gradual adoption. 20 years ago it was touted as the next big thing, but still today not every retailer is a fan.
Did customers want or need them? No. Paper tickets did a perfectly good job.
Did they like them? Apart from some complaints that they were hard to read, the general public was ambivalent.
For stores however, the initial attraction lay in the idea that digital ticketing could potentially reduce labour costs, prices could be changed at the touch of a button, and inventory could be tracked more accurately.
But on the flip side, implementing digital ticketing is a big capital expenditure, and for many retailers, especially those on the smaller scale, the ROI doesn’t add up.
Watch this space however, as this technology has become more commoditised and more affordable to retailers. Perhaps, after decades of development, it’s time for digital shelf edge tickets to become more prevalent.
The answer is…
If you haven’t successfully addressed these three ‘Need’, ‘Want’, ‘Like’ questions, be prepared to add the cost of removing a new in-store feature to your ROI.
Consider this:
A ‘make-your-own peanut butter’ installation might be a novelty at first, but how many customers are really going to take the time out of a busy shopping trip when an array of ready-made peanut butters are just a shelf away?
Virtual try on mirrors use augmented reality to let customers see how clothes will look on them without actually trying them on. It’s been trialled by Coach, Tommy Hilfiger, Nike, Sephora and Ray Ban and while it’s a novel customer experience, we’re definitely not seeing them in every fashion retailer.
Why? Let’s put it to our 4-question test. Do customers want it, need it or like it? And what’s the ROI?
Firstly, if customers have travelled to the store they’d probably prefer to try on the actual garment as opposed to a virtual one.
Do they like it? Well, it’s fun, but as most of the trialling retailers have positioned the units out in the open in the store, customers may feel potentially exposed and self-conscious.
And what’s the ROI? This is an expensive bit of kit and only really available to the big players.
Anything that hinders a customer’s shopping journey runs the very real risk of becoming a white elephant, and having a permanent reminder of something that didn’t work sitting in your store is not a good look for the brand.
Imagine the possible mindsets customers may experience during their journey and you’ll quickly recognise that all most of them really want, need and like is an easy and enjoyable shopping experience.
To really understand which ideas and innovations might work, always take it back to basics and think like the customer thinks.
As a brand communications agency with a ‘store-first’ philosophy, we’re skilled in making sure your brand is strongest where it matters most; at the pointy end of the customer experience. If you’d like to shop our thoughts, feel free to get in touch.
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