Earlier this week, The Seattle Times wrote about research by local firm Hartman Group, who asserts that consumer loyalty is shifting from products and brands to retailers, based on the experiences that are offered as opposed to product selection.
This comes as no surprise, for nearly 15 years I've been saying that for retailers, digital technology removes their previous competitive advantage of location. While it may be true that there is a Barnes & Noble in the local mall, bn.com and amazon.com and powells.com are all the same distance away from me: one click. Now that I can shop from the comfort of my own home from bookstores all around the world, all of which carry exactly the same product at essentially the same price, my experience with them is the deciding factor for who I chose to shop with.
According to the research, this type of mindset is also starting to impact real-world retailers. "Capturing the attention of the consumer requires different tactics, getting a lot more intimate and experiential."
I formed much of my thinking about integrating digital technology into physical space in order to create a unique and memorable experience during my time at Rockwell Group - where I learned that telling the story of a brand through architecture and space is a powerful tool. Much of that thinking is what led me to start this blog, and it is nice to see other organizations starting to publicize this thinking as well.
Clearly, companies like Starbucks, Apple, Zingermans, Zappos and Trader Joe's all understand the value of a great experience is equally important as a great product. I'm excited for our future, when a majority of companies understand this concept and are busy making sure their customers are happy and satisfied in an experiential way.
For some additional great thinking on this topic, check out Jonathan Salem Baskin's take on this interesting study.
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