Retailers need to offer a more multifunctional, “experience-based” environment in order to inspire, win and retain the loyalty of customers, according to a new report by Retail Economics and global law firm Squire Patton Boggs.
The Retail Experience Economy identifies four key factors determining a customer’s shopping experience: (1) Environment, (2) Education, (3) Escapism and (4) Entertainment and finds that 24% of 2,000 respondents said they would willingly pay more for the same product if it meant they would receive a meaningful experience when purchasing it.
43% of shoppers said that they are likely to spend more money in the future with a retailer who offered a meaningful shopping experience in-store.
Entertainment ranked the highest for younger consumers: 35% of respondents aged between 18-24 years old, compared with just 13% for the 65+ age group
Environment was the most important element of a meaningful shopping experience, selected by almost half (46%) of 35-44 year olds. Almost two thirds of consumers are more inclined to shop at destinations that house cafes, restaurants and bars as they place a multipurpose environment with social meeting points as a high priority
Richard Lim, Chief Executive, Retail Economics, explains: “UK retail is undergoing significant structural change. A behavioural revolution is taking place through a transformational shift in what people value most — experiences. Evolutionary processes have guided economic value from commodities, to goods,…