white paper Are your customers buying your shopping experience or someone else’s merchandise? SUMMARY • Retailers need to view their business in terms of customer needs
• Customer’s
choose a retailer because the retailer meets a need that transcends the merchandise
• Delivering
consistently excellent experiences is different from becoming an experiential brand
“Great retailers don’t deliver experiences in order to sell stuff. They sell stuff to amplify experiences!” Laurence Bernstein has been fine tuning the art of converting features, attributes and benefits into dynamic, experiential brands for 20 years. This White Paper looks at the retail purchase from the point of view of the customer, and asks the question, “what comes first, the merchandise or the merchant?”.
H
ave you ever wondered why
dise just to get customers to cross the
young Chinese men and
lease line?
women will spend several
months salary on a scarf or handbag from Gucci when they could buy an exact replica for a few dollars, just down the street (the replicas are uncanny and I defy anybody to tell the difference)? Have you ever wondered why otherwise perfectly sane people willingly line up for a Tim Horton’s1 cup of coffee, when there are three other alternatives within ten feet? And have you ever wondered why some stores have to discount their merchan-
The answer is that some brands are experiential brands and others remain retail brands. Many retail brands deliver experiences, or focus time and attention on delivering “consistent, excellent customer experiences.” However, they still see themselves primarily in the business of selling merchandise or serving meals or coffee – the experience is an added value or attractive come-on, designed to increase sales of merchandise, meals or coffee. Managers of Experiential brands, on the other hand, see themselves as selling
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416.967.3337 www.proteanstrategies.com
Canadian based chain of quick-serve coffee/ donut restaurants
experiences, where the merchandise is seen as a way of delivering the experi-