Revision Quiz - IER

Immersive Retailing

• Also known as experiential retailing, transforming conventional shopping
• Appeals to senses, emotions, and intellect to deeply engage consumers
• Strengthens the bond between consumers and brands, improving customer experience

Key Components of Immersive Retailing

• Immersive Environments & Multi-Sensory Experiences:
  • Creates unique and memorable experiences, transporting customers
  • Uses design elements like lighting, sound, and visual displays
  • Engages multiple senses to increase likelihood of experience recall and brand connection

Examples of Immersive Environments

• Nike House of Innovation:
  • Flagship stores designed for brand immersion
  • Features customizable products, AR experiences, and interactive displays
  • Customers can scan mannequins with smartphones for sizes/colors & virtual shoes via AR
• Starbucks Reserve Roastery:
  • High-end locations designed to immerse in coffee experiences
  • Features on-site roasting, brewing, and coffee tasting
  • Environment crafted to engage all senses

Interactive Displays

• Engage customers, creating playfulness and exploration
• Allow hands-on product interaction for a positive experience and feeling connected to the brand

Touchscreen Kiosks

• Examples of Interactive Displays in retail

Augmented Reality (AR) Displays

• Examples of Interactive Displays in retail

Interactive Mirrors

• Examples of Interactive Displays in retail

Gesture-Controlled Displays

• Examples of Interactive Displays in retail

Virtual Assistants and AI Chatbots

• Examples of Interactive Displays in retail

Personalization

• Creates personalized and customized experiences
• Offers personalized products or tailors product recommendations using customer data

Community Spaces

• Offer places for customers to connect and socialize

Community Spaces Examples

• Third Place Books (Seattle, USA):
  • Concept: Bookstore doubling as a community hub
  • Hosts community activities including readings, book clubs, and art exhibitions
  • Includes a café and public commons area
• Boxpark (London, UK):
  • Concept: Pop-up mall built from shipping containers
  • Hosts community events including live music, art exhibitions, and fitness classes
  • Features a flexible design and independent retailers

Differences Between Experiential and Conventional Retail Design

• Purpose:
  • Conventional: Focuses on driving sales and profits
  • Experiential: Focuses on creating a positive and memorable customer experience
• Layout:
  • Conventional: Maximizes space and ease of product finding
  • Experiential: Prioritizes an immersive and interactive environment
• Merchandising:
  • Conventional: Uses standard techniques like organizing by category
  • Experiential: Uses creative and unconventional techniques, e.g., interactive displays
• Technology:
  • Conventional: Provides a straightforward shopping experience
  • Experiential: Incorporates AR or interactive displays

Benefits of Immersive Retail

• Creates a multisensory environment to engage and captivate customers

Enhanced Customer Engagement

• Immersive retail attracts customers, leading to increased engagement
• Results in longer store stays and more merchandise interaction

Improved Customer Experience

• Sets a company apart from rivals by offering a distinctive and enjoyable experience
• Includes VR, AR, interactive displays, and other technologies

Increased Brand Loyalty

• Forms a deeper emotional bond with customers through positive experiences
• Results in increased referrals, repeat business, and brand loyalty

Personalization

• Increases relevance using consumer data for personalized recommendations

Product Visualization

• Allows customers to virtually try or see products in intended settings using AR/VR
• Lowers the possibility of returns

Reduced Showrooming

• Showrooming = viewing merchandise in person before buying online from a different vendor
• Helps avoid this by providing captivating in-store experiences

Increased Sales

• Increases sales because customers are more likely to make impulse purchases

Cross-Selling and Upselling Opportunities

• Highlights similar products or recommends complementary to increase these

Data Collection and Analytics

• Provides retailers with useful information on customer interactions and behavior

Competitive Advantage

• Differentiates a retailer from rivals with conventional shopping experiences

Key Factors Contributing to an Immersive Retail Experience

• Combines various elements to engage and captivate customers

Store Design and Layout

Thematic Design

• Transports customers by incorporating well-thought-out themes e.g. a cozy library

Innovative Layout

• Makes exploration exciting by experimenting with unconventional store layouts

Multisensory Stimuli

Lighting

• Sets the mood and draws attention to specific areas

Soundscapes

• Enhances atmospheres and creates emotional connection

Scents

• Evokes positive emotions and reinforces brand identity

Tactile Elements

• Stimulates touch and encourages hands-on exploration

Technology Integration

Virtual Reality (VR) and Augmented Reality (AR)

• Are used for product visualization, virtual try-ons, and interactive storytelling

Interactive Displays

• Encourage customer engagement with products and information through touchscreens/motion sensors

IoT Devices

• Enhance the shopping experience by providing real-time information

Personalization

• Leverages customer data and preferences to offer personalized product recommendations
• Makes customers feel valued and understood

Customization

• Adds a personal touch by allowing customers to personalize products or experiences

Engaging Staff

• Enhances experiences via informative and knowledgeable staff

In-Store Events

• Creates a sense of community and learning though staff led workshops

Storytelling and Narrative

Compelling Storytelling

• Draws customers into the brand by creating a narrative around products

Visual Merchandising

• Communicates a story
• Conveys brand values

Digital Integration

Mobile Apps

• Retailers may offer mobile apps which provide extra information, discounts or loyalty rewards

Social Media Integration

• Extends brand reach and engagement via instagram installations

Surprise and Delight

Unexpected Elements

• Can create a sense of wonder

Limited-Time Offers

• Encourages urgency and excitement

Feedback and Iteration

Customer Feedback

• Allows retailers to refine and improve the experience over time

Accessibility and Inclusivity

Ensuring an immersive experience for all customers, including those with disabilities

Relationship between the Five Senses and Consumer Purchasing Behavior

• Retailers use sensory experiences to influence decisions and create memorable shopping trips
• Fundamental aspect of consumer psychology and retail marketing

Sight

Product Presentation

• Attracts customers via visual cues like product displays
• Appeal encourages people to explore and engage

Color Psychology

• Retailers influence perceptions of brands by evoking emotion with color
• (e.g., red = urgency, blue = calm)

Store Layout

• Arranging products and aisles strategically places items

Hearing

Background Music

• Influences; pace, mood and perception of time spent
• Uplifting music encourages longer stays and slower music can promote relaxation

In-Store Announcements

• Drives customer interest and purchase by announcing special sales or offers

Touch

Product Texture

• Helps determine of items feel high quality; comfort lead purchasing decisions

Tactile Displays

• Increases confidence and likelihood of buying when people test products

Taste

Sampling

• Lead to buying

Complementary Products

• Encourages upselling via test tasting experiences

Smell

Scent Marketing

• Evokes emotion driving product buying

Scented Products

• conveys specific moods and associations to product

Technology Used in Offline Retailing

• Different types exist

Augmented Reality (AR)

• Improves user experience by merging the physical and digital world
• Enhances the shopping experience through digital information

AR Applications in Retail

Product Visualization

• Customers can view different product angles and its suitable for; machinery/electronics
• Example: IKEA Place app lets users see how furniture fits in their homes
• Example: Sephora Virtual Artist lets users virtually try on makeup

Interactive In-Store Display

• Customers can access product details/displays using a smart device

Sizing and Fit

• Customers can use AR to measure correctly and reduce returns via measurements

Navigation and Wayfinding

• Customers can locate departments in quick fashion

Virtual Reality (VR)

• Computer-generated environment that makes the user feel real

Virtual Showrooms

• Customers can discover in detailed virtual spaces
• Useful for furniture, interior design, and automotive industries
• Example: Burberry Virtual Showroom allows customers to explore collections in 3D.

Customizable Products

• Customers can view color changing/design changes or 3D product models

Staff Training and Development

• VR can be used on customers to train staff; service, knowledge, dealing with emergencies

Quick Response (QR) Code

• A matrix based code fast to read with large storage
• Designed in 1994 for automotive industry
• Used across industries due to fast readability & larger storage

Artificial Intelligence (AI)

• Machines that perform human thinking objectives
• Retail applications enhance customer experience/ optimize supply/ personalises efforts

Digital Technology

• Transform the customer relationship into an omni channel
• This creates personalized/ capturable customer data

Technologies Used in Online Retailing

• Examples include chatbot/streaming/shopping tours

Chatbots

• Software that can be simple pre written or Al level
• Provides information/ answers and checkout assistance via simulation

Live Streaming

• Brands market during events

Virtual Shopping / Tour

• E service to purchase items via live chat customer interactions

Advantages of Implementing Technology

There are a few; efficiency/ marketing related etc

Improved Customer Experience

• This is an advantage because retailers can tailor shopping experiences to consumers needs
  • Personalization - AI allows sales to tailor to customers
  • Convenience - Self checkouts and online offers extra convience
  • Enhanced Customer Service - virtual workers handle selection/questions 24/7

Operational Efficiency

• Automation and checkout are more efficient and automated and can reduce labor costs
• Data Analytics allows retailers to oversee customer trends and sales

Cost Reduction

• Labor costs are lowered via automation
• Under $ Over stock are reduced using efficient inventory tracking

Enhanced Marketing

• Analytics help advertising be more targeted
• online marketing for wide audience

Sales increase

• Online channels attract most demographics
• Digital ads and personalised buying impulse buy

Disadvantages to Implementation

• Includes job $ impact on users/high costs so on

High investment

• Advanced tech can be too much with hardware as a result
• There may not be an immediate return on investment

Technical Challenges

• Integrating systems
• Continuous running requirements

Security Risks

• There are higher data breaches and cyber attacks
• Customers are scared about personal storage

Job displacement

• Lowers morale and replaces employees via reduction

Customer adatation

• Learning curve/digital divides

Relationships between tech and purchase/bahaviour

• Its an evolutionary trend
• Technologies influence user purchase power via the following :

Easier infomation/Efficient sales

(App platforms and digital payments)

Personalized/Social influence

• User innovation is driven via preferences in mind such as user experience

Defining Marketing Startegies for Retail:

• Customer analysis is critical

• Marketing must meet 3 elements, budgeting customer traits, target market

• Key elements include marketing segment market research all tailored towards audience behaviour

• Product targeting has the products designed meet user need + demands

• Customer Pyschographics include extensive studies

• Customer analysis is critical

• A good marketing startegy requries:

  • Objective setting
  • Market research
  • Budget
  • Multiplatform support
  • An optimized digital footprint
  • Testing and monitoring for improvement

Innovative Offline Marketing Strategies

• Innovative marketing helps firms differentiate themselves and generate growth

Influencer Marketing and Micro-Influencers

• Using social media influencers to target specific audiences

User Generated Content (UGC) Campaigns

• Encouraging customers to share content to foster community

Experiential Marketing

• Creating immersive experiences for emotional connections

Social Media Challenges and Hashtag Campaigns

• Creating challenges and initiatives that inspire users to join and share on social media

Augmented and Virtual Reality (AR/VR)

• Consumers interact with products or services in novel ways using tech

Content Marketing and Storytelling

• Creating valuable, relevant content to engage customers

Interactive Content

• Interactive Films etc boost engagement

Need for Innovative Marketing Strategies That Complement Immersive Retail

• Complements them and aids sensory engagement and can enhance brand

Improving Engagement and Connection

• Innovative marketing should engage customers to establish brand connection

Difference and Competitive Advantage

Helps business stand out from competitors (when done correctly)

Boosting Brand Messaging:

Tactics can be implemented into the envionment of the campaign

Encourage Word-of-Mouth and Social Sharing

Creating share worthy moments

Data Gathering and Customer Insights

Used to analysis customer behaviors

Adjustment to Changing Customer Expectations

Consumer expectation adjustment is always critical

Elements of Innovative Marketing Strategies

• Data-driven insights enable targeted and personalized efforts by understanding consumer behaviour + needs
• Netflix & Amazon analyse consumers to predict content

Personalisation

• Customising content and delivery channels (email etc) towards consumer "Wrapped" spotify colates data to provide music taste summaries
• The "Share A Coke brand, personlises name

Storytelling:

• Making brand more relatable Apple & Dove tell stories to market

Interactivity

• Quizzes provide sharing on social media Buzz feeds are viral Ikea creates a real environment to promote

Social Proof and User-Generated Content:

• Leveraging customer reviews to build credibility Glossier shares real customer photos for promotion

Multi-Channel Integration:

• Integrates all touch points Star Bucks integrates the mobile app across digital stores

Define requirements for marketing strategies

• tactics need solid demographics
• key steps for such a process:

Market Research and Segmentation

• Demographics, segment consumer

Customer Profiling

• Motivations + purchasing

Value Proposition Alignment

• align with customer needs

Channel Selection

• select channels to distribute

Product/Service Customization

• products are tailored

Pricing Strategies

• prices adhere to segment

Input and Iteration

• satisfaction development

Customer psychographic

• entails behaviour
• met w; market study
  • values - beliefs

Segmentation and Targting:

• Segment marketing based on pyscho
• Target; these characteristic

Client Persona Development:

• Detailed personas

Understanding Motives and Pain Points:

Examine each pyscho motive desire pain

Customised Messaging and Communication

Messaging + comms based on traits

Product/Service Positioning:

Lifestyle value for group in question

Budget:

• Devleop strategy with these consdiertatios

Describe Clear Objectives:

• Achievce/ increase
• Traffic. + lead

Know Your Target Audience:

• Customise reach

Assign a Budget:

Channel allocation

Prioritise Marketing Channels:

Cost effective platform

Create a Content Strategy:

Useful consistent content

Improve Your Digital Presence:

Increase visibility

Results Monitoring and Analysis:

Track with KPIs

Legal and Compliance Considerations:

Consider requirements Channels

Social Media Platforms

Direct Customer Feedback

Customer Satisfaction Surveys

Explain the importance of gathering and interpreting data on customer satisfaction

Understanding Customer Needs and Expectations:

Customer satisfaction data can assist organizations learn what customers enjoy and hate about their products or services. This information can help guide product development and service enhancements.

• Expectation Management: It enables businesses to better understand their customers' expectations, which helps them align their products and services to meet or exceed those expectations.

Improving products and services:

• Identifying Pain Points: Customer satisfaction data provides direct feedback on what aspects of a product or service are working well and what needs improvement.
• Innovation Opportunities: Understanding customer needs and pain points drives innovation, leading to the development of new features or entirely new products.

Enhancing Customer Loyalty and Retention:

• Meeting expectations builds trust and results in repeat business
• Building Trust: Meeting or exceeding customer expectations can foster trust and loyalty, resulting in repeat business.

Reduce churn:

Address issues - reduce customers leaving

Competitive Advantage:

• Benchmarking with competitiors in the market Data Driven
• Educate with all satisfaction info

Financial Performance

• More sales if customers like

Cost savings

Reduce complaints increase customer assistance

Reputation Management

Improves public perspective via satisfaction

Ways to Improve Satisfaction

Crisis Mitgation;

• Avoid damaging brand

Key Metrics for success include

Footfall/Traffic on Respective Touchpoints:

• High traffic = good engagement Track sensors/analytics

Conversion Rate

Assess efficiency, pique client interest

Revenue:

Financial success measured by sales

Category Sales

• Statistics are determined per product
• Help with inventory management and startegy
• Comapring to help increase performance

iv. Customer Referral Rate Customer Referral Rate measures the percentage of new customers acquired through referrals from existing customers.

Measurement: It can be calculated by dividing the number of referred customers by the total number of new customers, then multiplying by 100. For example, if 200 new customers were acquired, and 50 came through referrals, the referral rate would be 25%.Improves public perspective via satisfaction