strategy guide: build an in-store...

STRATEGY GUIDE: BUILD AN IN-STORE EXPERIENCE FOR THE SOCIAL AGE

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Traditional retail has been undergoing a powerful disruption in recent years. As consumers largely shift toward a fragmented, digital-first buying journey, brick-and-mortar retailers are struggling to engage audiences and drive return foot traffic. In fact, according to The Wall Street Journal, US retailers alone will close an estimated 8,600 stores this year 1, while in the UK nearly 1,200 stores have closed by mid 2017 according to the Centre for Retail Research 2. As a result, big-box retailers, shopping centers, and malls are also scrambling to find new identities that will resonate with audiences.

There are two primary trends compounding to create this challenge for brands.

Consumers increasingly expect hyper-convenient, connected purchase capability. Amazon has greatly accelerated this trend. When consumers are delivered personalised messaging and offers, and can make purchases from the comfort of their home why would they go into a store?

Consumers prefer compelling experiences to branded products. For brands that want to drive in-store traffic, they will need to reinvent their experiences to provide stronger value to visitors, not just once, but for each recurring time they enter a location.

INTRODUCTION

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1 Kapner, Suzanne. “Brick-and-Mortar Store Are Shuttering At a Record Pace.” Wall Street Journal. 4/21/17.

2 “Who's Gone Bust in Retailing 2010-17?” Centre for Retail Research. July 2017.

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Before this transition into a new commerce paradigm, branding was initially conceived in the physical in-store environment and then recreated online. Today, the opposite is true, as brands are defined online in collaboration with their audiences, then the message is extracted to inform the design of brick-and-mortar locations. While direct-to-consumer brands that are native to e-commerce have revolutionised this approach, for many established retailers the change has been rather difficult. While some have called this change the beginning of the end for brick-and-mortar retail, we don’t believe that to be the case. After all, even Amazon is opening physical locations which encourage people to visit through online interactions. Instead, consumers are mandating better experiences from brands they choose to do business with, and calling on retailers to transform outmoded in-store experiences in favour of more personalised ones.

Both digital and in-store shopping experiences have benefits and detriments. Consumers may prefer to go to a physical location to feel the fabric of a new rug, to sit on an armchair to determine its comfort, or to try on clothing to ensure a proper fit. They may also enjoy being helped by a shop assistant who can provide recommendations and product information. Online, consumers are interested in convenience, and have unlimited access to reviews, imagery, and other insights to help justify their purchases. So, both “worlds” can learn from one another as brands attempt to develop a more holistic, fulfilling, omnichannel buying journey.

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Social media, and more specifically mobile devices, are changing the way people shop - allowing consumers to find inspiration and make purchases anywhere and at any time. According to PwC’s most comprehensive Total Retail report, which surveyed nearly 23,000 online shoppers globally, respondents cited “social media” as the “great influencer” in the future of the branded experience.

At Olapic, we firmly believe in the value of user-generated, or “earned” content as a way for brands to co-create their marketing experiences, inclusive of their in-store environments. Consumers want to share, see who is sharing, and participate more directly in the in-store experience. But, how can brands tap into this behaviour to transform their physical spaces? What excites consumers in-store, and will get them to create and share relevant content that can drive others to visit and make purchases? To find out, Olapic recently partnered with Kantar Added Value to analyse 1,000 images collected from six global retail brands.* As a result of our analysis, we uncovered four key steps brands can take to help trigger earned content creation in-store. Read on to learn what they are, and how your brand can use them to create more digitally-driven in-store brand experiences.

“The holy grail now for retailers is creating digital empathy. No one can really guess what the future will look like. But those who are using technology and data to create bespoke shopping experiences that recognise every person is different, and with different needs, are more likely to come out on top.”

JONATHAN CHIPPINDALE, CEO OF HOLITION * The six brands were not involved with, or aware of, the Kantar Added

Value research, and not all of the brands are Olapic customers.Imagining the Retail Store of the Future, The New York Times, April 2017

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STEP 1: IDENTIFY EXISTING IN-STORE “HOTSPOTS” 24.5

PERCENT

19.5PERCENT

11PERCENT

7.3PERCENT

To begin, brands should take a look at where there are existing “hotspots” in-store that are driving content generation. This includes places that users are already taking photos such as dressing rooms, balconies, or in front of decorative displays. For Topshop, for example, we identified a critical hotspot when we saw that 50% of the user-generated content being tagged to the brand on social came from customers modelling, styling, and playing with the clothes. This behaviour was largely occurring in dressing rooms, creating a new type of content studio for customers to take and share high-quality, personalised imagery. Here were some of the specific themes noted in the content analysis:

FEISTY AND FIERCEThis represented the biggest category of shared content in the retailer’s hotspot, as customers took photos of themselves portraying strong personalities they likely believe matched the aesthetic of the clothing they were trying on in the dressing rooms.

IN-STORE SELFIEOf course, many users liked to take selfies of themselves while in-store, perhaps to showcase where they were to their networks, or to demonstrate a particular feeling or attitude toward the experience.

THE OUTFITInterestingly, images focused solely on various outfits represented a smaller subset of the imagery that was analysed. Still, it was clear some customers were taking an opportunity to share outfits to get feedback prior to making a purchase.

THE SQUADUsers also liked to demonstrate that they were shopping with their friends, and that picking up a new outfit or accessory was a social endeavor.

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Many retailers have stepped up to transform their changing room designs and experiences to take advantage of this existing behaviour. Swedish fashion retailer Bubbleroom, for example, enhanced its changing room experience using high-tech selfie mirrors. Developed in partnership with Clicksys, these interactive displays allow shoppers to quickly and easily snap and send themselves photos of the outfits they try on. The customers receive a discount for doing so, and Bubbleroom receives permission to upload and utilise those photos in potential advertisements and communications. Consumers have more fun and gain utility from the experience, and Bubbleroom builds a repository of high-quality consumer-generated content which is captured at a critical stage in the buying journey.3

Whether you choose to employ props, pull-down sets, VIP areas, or distinct lighting packages, by setting up your changing room to be a content studio, you can encourage your customers not just to try on your products but to assist in your marketing efforts at the same time.

3 “Bubbleroom Case Study.” Olapic.com

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STEP 2: MAKE YOUR STORE “PHOTO-READY” 25.9

PERCENT

16.5PERCENT

12PERCENT

Once you’ve identified and optimised your in-store hotspots, you can expand the experience to the rest of the retail environment. This requires well-lit displays, remarkable attractions, and interesting signage. Nike is a brand that does a fantastic job of setting up their stores in this way: part museum, part mecca. Sneakerheads travel far and wide to take in and try on the brand’s iconic shoes, which are placed on pedestals for reverent adoration. Here were some of the more specific characteristics uncovered in the analysis of Nike’s in-store content:

THE ICONNike’s famous “Swoosh” logo is heavily featured in content being shared by users in-store. While Nike is a market leader, in many ways it has also remained an aspirational brand, and users enjoy aligning their imagery with the brand design.

SPORTS MUSEUMThe second most prevalent category included content focused on Nike’s place in sports history. Images showcasing popular designs or moments portrayed throughout the Nike store were very popular amongst users.

TRY IT ONA fair amount of images taken in-store featured users trying on products and sharing the looks with their audiences.

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21% 19.8% 16%

Puma, another athletic-wear brand, also has built a successful in-store experience but takes a slightly different approach. The brand elects an edgier, more underground vibe, and celebrates the urban scene in-store, utilising many dividers, turns, and cul-de-sacs to allow customers to explore the store like they would a city. Over 50% of the in-store user-generated content for Puma comes from people celebrating and interacting with the store environment itself. The primary characteristics of content analysed included:

Remember that a retail space is an extension of a brand, and should reflect accordingly. Is your retail environment a showroom, or a meeting place, or a space for inspiration? How are you going to invite customers in by creating a space for them to discover and share?

URBAN ICONMany of the images we analysed featured the design of the store as a fixture in an urban environment. Users identified with the look-and-feel of Puma’s retail experience.

THE PRODUCTDue to the design of Puma’s store, which includes more interaction and less of a clearly defined path, consumers have to put in more work to uncover products that resonate with them. This helps to explain why there was more content showcasing various product zoom shots, as customers wanted to show off their discoveries.

EXHIBITION SPACEThe third most popular category for imagery in-store for Puma included content showcasing the artistic elements of the experience. From product displays to lighting and design, customers appreciate the craft that goes into the decor, and shared a wealth of content accordingly.

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STEP 3: ENSURE YOU HAVE A RELEVANT FEATURE ATTRACTIONRetail designers have always considered the use of feature attractions or window displays in order to draw foot traffic into their stores. Today, however, brands must include featured attractions to also drive users to create and share content on their Instagram feeds. Featured attractions can be anything tied to the architecture of the store itself, or an art installation, or a decorative wall. Regular events can also serve this purpose, including in-store performances, film-screenings, or other related celebrations. Lord & Taylor, for example, chose to feature a concierge service and pop-up concept within its newest retail store called Dress Address.4 Charlotte Tilbury chose to offer an in-store beauty salon to its patrons.

Kate Spade does a fantastic job executing this concept by incorporating a feature wall that is completely consistent with the brand’s culture. The brand puts product on the back burner, focusing primarily on the personality and aesthetic that its customers prefer. As such, over 70% of the content we analysed features quirky, eccentric design touches that are totally on-brand.

4 Paton, Elizabeth. “Imagining the Retail Store of the Future.” The New York Times. 4.12.17.

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Think pink flamingos, beautiful window displays, and flower-covered feature walls. Here were some of the specific content characteristics:

As you think about your own feature attraction, remember to consider not just what will draw individuals into the store, but what will draw your target audience into the store and elicit them to create beautiful branded imagery that can be repurposed by your marketing team.

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THE ICONSimilar to other brands analysed, the brand iconography was paramount in imagery created and shared by customers.

ASPIRATIONAL LIFESTYLEWith the same prevalence was imagery focused on demonstrating an aspirational lifestyle for customers. Here, images of beautiful, high-value merchandise and decor featured prominently.

QUIRKY ECCENTRICITYThe elegant and whimsical designs within the store caught the attention of content creators, as this category was the second most popular in the images we reviewed.

FEATURE WALLKate Spade stores include a living wall of gorgeous, vibrant flowers featured alongside the brand, which drew the attention of many content creators.

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“Stores cannot just be row after row of product rail anymore … To survive, they have to tell stories — rooted in a sense of community and entertainment — and have points of view that make the owner stand out.”

- TOM CHAPMAN, FOUNDER OF MATCHESFASHION.COMImagining the Retail Store of the Future, The New York Times, April 2017

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STEP 4: MAKE YOUR STORE AN INTERACTIVE DESTINATIONFinally, once the previous steps have been taken, it’s time to make your store a truly interactive destination that will entice visitors to return time and time again. If you’re going to draw consumers off the couch, you must give them something that they can’t do at home. That used to mean trying things on and sampling new scents, but consumers now expect to be entertained. British cosmetics company Charlotte Tilbury has been attracting visitors with a 'magic mirror’ display concept5 which The New York Times described as "a virtual makeup selling tool that allows users to try on different looks that are digitally superimposed onto their faces in 40 seconds.”6

Diesel has made interactivity the heart of its in-store experience. By creating a sense of variety with shareable features, in-store events, live music, and artful design, the brand has turned a visit to a location from a shopping excursion to a tourist destination. Almost 50% of the content tagged shows events, features, displays, films, and other activations the brand has employed. Here were some of the other specific characteristics from the content analysed:

5 Paton, Elizabeth. “Imagining the Retail Store of the Future.” The New York Times. 4.12.17.

6 Paton, Elizabeth. “The Cosmetics Creator: Blending Art and Commerce.” The New York Times. 1.6.17.

25.3PERCENT

17.9PERCENT

16PERCENT

IN-STORE SELFIEDiesel customers identify with the brand in a unique way. Above all, the most content shared by users focused on in-store selfies. Whether standing by a feature, or trying on apparel, users want to align themselves closely with the brand’s experience.

YAK ATTACKMany customers took and shared images of a full-size fake yak (yes, the animal) that was a featured item in the Diesel store. In this case, different and unexpected was a powerful driver for content.

DESTINATION DIESELSimilar to the “in-store selfie” category, customers are keen to show off their connection to Diesel on their social networks, often sharing content related to the storefront and brand iconography.

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Fashion retailer Pepe Jeans, to support the launch of its new Powerflex Jeans, created the #GetItOnChallenge, asking consumers to post a video of themselves putting on their jeans without the help of their hands. Those who accomplished it would win a pair of Powerflex Jeans. The brand set up featured areas in-store across 55 locations to support the effort, drawing further attention to the campaign. As a result, Pepe Jeans achieved over 1,500 participants, and reached 33 million users on social networks.

What can you do to build your retail experience into an 'Instagram- friendly' destination, driving both discovery and novelty?

“If time is the ultimate luxury and people want a higher return on investment of their time, you need to give them a reason to be in a physical space.”

RACHEL SHECHTMAN, FOUNDER OF STORYImagining the Retail Store of the Future, The New York Times, April 2017

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Modern consumers demand unparalleled convenience, customisation, and entertainment. More and more, brands are using digital tools to deliver on those desires, but it doesn’t mean the in-store environment is any less important. For brands to succeed, they must consider how to build experiences that connect the online and offline worlds, designing experiences that will capture the imagination of their audiences and drive visual content creation on social networks like Instagram. From there, brands can tap into this wealth of earned content to achieve consistent experiences across all touchpoints.

There is an enormous opportunity for retailers to do a better job at attracting and retaining customers, in-store and beyond. How will you transform your locations to build deeper, more powerful relationships with your customers?

ACTIVATE EARNED CONTENT TO BUILD BETTER EXPERIENCES

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ABOUT

ABOUT OLAPIC

Olapic is an innovator in visual content solutions. From pioneering the first visual earned content platform to creating unique, on-brand visual content formats for use across all consumer touchpoints, Olapic helps drive brand engagement and performance, at scale, for hundreds of the world’s top brands. An official member of Facebook Marketing Partner program, Instagram Partner program and Pinterest Partners, Olapic is headquartered in New York City with offices in New York, Los Angeles, London, Paris, Berlin, Hong Kong, Tokyo, and Córdoba.

For more information on Olapic, visit www.olapic.com.

Olapic is a wholly-owned subsidiary of Monotype Imaging Holdings, Inc. (Nasdaq: TYPE).

ABOUT KANTAR ADDED VALUE

Kantar Added Value is a creative marketing consultancy. We are one of the founding partners of Kantar Consulting, the sales and marketing consultancy at the heart of WPP. Our purpose is to add serious value to the businesses we work with and the world we live in. We challenge our clients to build brands that shift categories and shape culture because we recognise that at a time when people are way more interested in their lives than in the brands we are charged with marketing, we need to develop brands that deliver experiences and champion issues that people genuinely want to engage with. It’s how we add value. Kantar Added Value’s consulting services include Portfolio Strategy & Segmentation, Category Strategy & Innovation, Brand Positioning, Human & Cultural Insight, Cultural Strategy, Brand Communications Optimisation and Brand Tracking. Today Kantar Added Value operates globally from 11 locations in 9 countries, working with a broad spectrum of world-famous brands including Unilever, GSK, MasterCard, Nestlé, Vodafone, BMW, PepsiCo, AT&T, Diageo, Facebook, Mondelēz, Centrica, IHG, Tesco, Tiffany’s and EY.

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