Experiential Retail – 12 Essential Case Studies from Warby Parker to L’Oreal
The overwhelming majority of retail sales still take place in stores. But with the option to bypass stores consumers are more discerning. Couple that with a wave of store closures retailers are trying to figure out what the secret sauce is for getting more foot traffic.
Experiential retail is seen as way to build greater brand loyalty while at the same time increasing foot traffic and ultimately sales. Retailers from Nike to Nordstrom to Warby Parker have done a great job of providing customers with memorable experiences, the kind that drive the best form of marketing, word of mouth.
As you will see experiential retail is not a cookie cutter strategy. Nordstrom’s experiences focus on personalization and convenience. Vans on the other hand focuses on community, education and entertainment. Which strategy is most effective depends on your target customer and goals.
If you are looking for some inspiration we have got you covered with 12 case studies starting with Nike. And if you want a deeper dive into the world of experiential marketing checkout this post.
1. Nike
In 2018 during NBA’s all-star weekend if you were one of Nike’s super fans you may have received a notification on Nike’s SNKRS app informing you that a limited-edition Nike Cortez sneaker was going to drop soon.
The shoe was made in collaboration with Kendrick Lamar. Since Nike used geo-fencing even if you were a superfan you only had a shot of getting notified about the drop if you lived in L.A. And if you did receive the notification then the next day you had to show up at Nike’s NBA all-star game headquarters. The most engaged sneakerheads got wristbands to attend a Kendrick Lamar performance that evening.
Now that’s the type of experience that a customer is going to remember for ever. It is an unbelievable experience because Nike has such a deep understanding of its customers’ wants and needs.
2. Warby Parker
When Warby Parker opened its 50th store in Melrose California in 2017 it invested in what was the brand’s greatest store experience at that time. The store was outfitted with a green room where customers could record 15 second videos while trying on Warby Parker glasses.
Since the retailer literally had a green room in the store customers could change the backdrop in their videos to their liking. Backdrops ranged from: outer space to a shark-filled aquarium to a big pepperoni pizza to a palm tree-lined boulevard. Once the videos were created customers could easily share videos with others or keep them for themselves. The close distance between the store and Hollywood was the inspiration for the fun customer experience.
Warby Parker’s Green Room in its Melrose location. Credit: Warby Parker
Speaking about its store experience, Dave Gilboa, Co-CEO of Warby Parker has said: "the best brands and retailers have to give people a reason to go into a store.” “Every day in the press, traditional retailers are announcing bankruptcy or closing stores, and it's because they haven't innovated the shopping experience."
When it comes to unique and unforgettable customer experiences, Gilboa says Warby Parker focuses on “unique elements in stores that stand out and people want to talk about." "We're in favor of people sharing images and videos, but [we] leave it in the hands of customers and don't push it too hard."
3. Coach
Coach launched their version of an interactive popup with a 6-day event in SoHo, New York in 2018. Called Life Coach this was Coach’s first brand activation outside of one of its stores.
There were four interactive rooms each with its own aesthetic that featured blank walls that visitors could draw on, tarot card readings as well as carnival games. One of the Instagram worthy rooms looked like a day at Coney Island. The exhibit was inspired by New York the city where Coach was founded in 1941 and no products were on sale.
Speaking about the event Coach’s Chief Marketing Officer said "we deliberately wanted to create a new environment and not have the limitations of a pre-designed retail space.” That way, guests “could roam throughout the spaces and be on a discovery mission and explore”. The goal? “That every single person that walked through it had a very unique experience and walked out of there with a sense of what Coach was about."
4. Adidas
In Adidas’ flagship store on Oxford street in London which opened last year, customers are treated to Adidas’ vision for the store of the future. The store has a number of tech enabled features and Adidas calls the store its most digital yet. For example, fitting rooms are outfitted with smart mirrors that show what a clothing item looks like on a customer against various real-world backdrops.
If for instance a customer is trying on a soccer jersey, they could see what they would look like wearing that jersey while watching a soccer game. Customers can also simply touch smart mirrors located inside of fitting rooms to request different sizes and colours.
A smart mirror in Adidas’ Flagship store in London
For customers not content with walking around the store to test out a new pair of shoes, the store has a running lab. The running lab has treadmills facing a London backdrop so that customers can get the feel of what it would be like to run in the Adidas shoes in various settings.
If a customer wants to try on footwear they can use the “Bring it To Me” functionality in the brand’s mobile app. All a customer has to do is take a photo of the shoe they want to try on then staff can view the customer’s location in the store in order to bring them their requested item. Customers can also use their mobile phones to scan product, check stock, ask for a size and checkout.
Finally, the store also has a number of value-added services including: sneaker cleaning, bra-fitting appointments with trained staff and seamstresses to customize purchases.
Adidas has literally thought of everything.
5. ModCloth
Over a two-week period in 2018 ModCloth created an Instagram experience within its stores for its customers. It hired a professional photographer and gave customers the option of having a photo taken of them in an outfit styled by ModCloth.
After the photos were taken customers were given the digital files as well as a print out of a photo that was taken. Photos of the customers were then displayed on digital screens in the store turning customers into clothing models.
The goal of the initiative was to increase awareness of ModCloth’s new store in San Francisco as well as to create a piece of content that customers could share with friends and family. Over the two week period when the initiative ran ModCloth took more than 250 unique portraits and the initiative had nearly 5 million social media impressions.
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6. Nordstrom
With the opening of its men’s flagship store in Manhattan, New York, Nordstrom has taken experiential retailing to the next level. This store is Nordstrom’s first store that is dedicated solely to men. It is also the chain’s first full price store in Manhattan. The attention is in the details and this store does not disappoint with an array of services that provide a great customer experience including:
Reserve online and try-on in store. Customers can reserve up to ten items that they want to try on when they arrive in-store. When the customer is 0.2 miles away from the store a sales associate places their items into a fitting room and notifies the customer when the fitting room is ready. Customers must opt-in on Nordstrom’s app to give Nordstrom their location details. According to Jamie Nordstrom: “geolocation is a big unlock for us. What's important about that is: we know where you are and that's not because we're doing some weird, creepy thing, [but because] it's actually better service for you.”
Buy online, pick up in-store and curb side pick-up. Nordstrom is pushing the convenience factor by allowing customers to pick up orders 24/7 (whether the store is open or closed). Nordy loyalty club members can also schedule to have their orders picked up at a certain time and a sales associate will walk to the customer’s car to give them their order.
Free personal styling services. Customers can increase their style level by using the services of a personal stylist free of charge with no pressure to buy.
Clothing detailing. The store features a Levi’s Tailor Shop where customers can have their denim jeans or jackets distressed, hemmed, repaired or elevated with studs and decals.
7. L’Oreal
As part of a Singles Day shopping event, eCommerce giant Alibaba set up 60 pop-up stores in over 50 malls across China. One of the features of the pop up stores was a “magic mirror”, a screen that uses augmented reality technology so that shoppers can “try on” cosmetics and apparel virtually.
L’Oreal, one of over 100 brands that participated in the pop-ups, allowed shoppers to “try on” lipstick using the technology. Shoppers sampled different shades of lipstick and blush and if they were happy with their virtual look they scanned the products’ QR code on the screen and ordered the product from L’Oreal’s store located on Alibaba’s online site. Items were then paid for using Alipay and delivered to the customer’s home.
8. Vans
Vans has created an entirely different form of experiential retail with its House of Vans concept. There are House of Vans locations in London, Brooklyn, Chicago as well as pop-ups across the world. The London House of Vans, for example, is a 30,000 ft venue that features an indoor skatepark, an art gallery, a cinema, two bars and a restaurant.
Two-hour skateboarding or BMX lessons are available for free. The venue also hosts live music concerts. According to Vans, the House of Vans is “a place where imagination lets loose over concrete bowls, art installations, workshops and concert stages, inspiring every person who runs, rolls, or stomps through its door.”
In September of 2018, House of Vans popped-up for three days in Toronto. The three-day installation included: a skatepark that was built for the event, an art show, a live concert, a community-based market featuring local vendors, a photography exhibition and a photography workshop.
The event also included “Get on Board”, an initiative focused on getting women to partake in the skateboarding culture through skateboarding clinics. All events and activities offered by the House of Vans were free of charge. Success of the concept is not based on sales but on creating a strong connection within the community. According to Alex Auchu, Marketing Manager at Vans Canada: “if the skate industry is healthy, then our brand is healthy.”
9. Canada Goose
To provide customers with the experience of what it is like to wear their products in the environments they were created for, Canada Goose has installed cold rooms in some of its stores. These small rooms are set to -25 degrees Celsius (-13 Fahrenheit). The rooms are even equipped with a windchill button.
Customers select a coat and then a sales associate accompanies the customer into the cold room to test out the jacket. Speaking about the cold rooms, Dani Reiss, Canada Goose’s President and CEO said: “we’ve found that the Cold Room is very exciting to customers right now, but we think it will continue to have value long after the novelty factor has worn off.” “It means customers can explore buying a coat in the summer months, when it’s hot outside.” This experience is so good that Fast Company named it the best retail experience of the year in 2018.
10. Zappos
Tony Hsieh, CEO of Zappos, the online shoe retailer, says that customer service is their main product. Zappos’ number one core value is to Deliver WOW Through Service.
To demonstrate this commitment to its customers, in 2015 30 Zappos employees arrived in Hanover New Hampshire in the middle of the night. They dropped off large boxes of gifts to each home in Hanover. The Hanover community is considered to be “fiercely loyal” to Zappos. Approximately 1,900 packages were delivered. The packages contained a range of items including backpacks, headphones and warm weather gear. Not surprisingly residents were delighted to find the packages when they woke up the next morning.
To provide experiential retail the same old event is not going to cut it. Zappos did an excellent event of identifying its super fans and creating an unforgettable experience that they will likely remember for the rest of their lives.
11. Glossier
In 2018 Glossier hosted a month long pop up at Rhea’s Cafe, in San Francisco where customers could eat fried chicken while shopping for Glossier’s beauty products. Creating an event like this that coincides with introducing new products or featuring products you already have in a new way can drive excitement and engagement.
There was a special menu for the event which included buttermilk fried chicken sandwiches, Korean steak sandwiches, chicken katsu sandwiches, fries and salads. Customers attending the event could take a seat and browse Glossier products which were located throughout the café for testing and purchase.
The café where the pop up was hosted was painted in Glossier’s signature millennial pink which made for many Instagram worthy moments. Customer purchases of beauty products came in unique packaging to make the visit feel even more special.
12. Louis Vuitton
For the launch of Virgil Abloh’s first collection for Louis Vuitton, Louis Vuitton opened a pop up store in London last October. The 2,000 sq. ft pop up had a Wizard of Oz theme, one of Abloh’s key inspirations for the collection. Featuring a yellow brick road staircase the pop up felt more like an exhibition. To gain entry into the popup which sold hoodies, tailored clothing as well as must have accessories from the spring/summer 2019 menswear collection, visitors had to purchase tickets.
Speaking about Louis Vuitton’s focus on popups, Louis Vuitton’s CFO, Jean-Jacques Guiony told analysts: “this trend in pop-up stores is extremely important, and we will continue to develop that because it enables us to be talking in a different way to our clients ... and it adds flexibility with our network.”
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