December 2019 – The NPD Group – In Brief:

• As consumer needs continue to shift, and brand loyalty wanes, smart brands and retailers are embracing one or more of the seven key experiential models that win over shoppers: convenience, expertise, treasure hunt, curation, entertainment,  frictionless, and community.
• Retailers and brands are embracing new selling models, like rental, consignment, and service offerings to bolster those experiential models.
• Blended online and offline capabilities are especially critical as retailers and brands aim to offer value-added experiences in an increasingly digital landscape.

Experience is top of mind for most of us these days. Improving online and in-store customer experience was one of four main priorities for retailers in 2019, along with growing revenue, reducing cost, and improving products, the National Retail Federation reported.

The urgency around improving in-store and online experiences is not unwarranted. The ability for shoppers to buy products from the comfort of their own homes has reduced the need for stores in many cases. Meanwhile, brand loyalty has waned in recent years. As a result, many brands and retailers have found themselves aggressively cutting prices, resulting in lower margins.

In a time of fierce competition, experiences can help brands and retailers demonstrate their added value. Embarking on an experiential strategy, however, is easier said than done. “Experience is a tricky word. Often, people think there’s only one idea of what constitutes a good experience, when in fact there are many,” said NPD Vice President and Industry Advisor Matt Powell.

Analyzing market information from across industries, NPD has found seven key experiential models that allow brands and retailers to create compelling value propositions that move beyond price.

Read more at The NPD Group.