Starbucks, while known for its consistency, also plays with varying store sizes and infusing local elements, offering a balance between brand recognition and local adaptation. This hybrid approach shows that while the master brand needs to be consistent, there’s room for localized experiences, especially in locations where customers seek more than just a quick transaction.
This experiential aspect is crucial in brick-and-mortar retailing. The strategy is not about breaking the rules of branding but smartly bending them to enhance customer engagement without diluting brand recognition.
Achieving balance is crucial in order to bolster sales and attract new customers without alienating their loyal base. This involves gaining a deep understanding of customers and identifying the experiences they cherish.
Take, for example, Bed Bath & Beyond‘s recent blunder. Apart from lagging in its adoption of online shopping, the company committed two fatal errors: In 2019, after hiring Target’s chief merchandising officer as its new CEO, the first misstep involved a decision to revamp stores, deviating from the successful “stack it high and watch it fly” merchandising strategy.
The second, and most fatal, was delisting esteemed national brands and substituting them with private label offerings. Customers cherished the traditional experience of sifting through abundant merchandise and found the private label products subpar to national brands.
Before implementing significant changes, it’s crucial to connect with customers, whether in-person or through online platforms, to understand their retail preferences and identify areas for improvement. To effectively engage and survey customers, brands can deploy a range of tactics:
- Utilize social media for engagement and monitoring customer sentiment
- Conduct email surveys to gain insights into customer perceptions
- Establish online communities or forums for discussions and shared experiences
- Send short surveys via SMS, targeting specific customer segments
- Use QR codes for product information, discounts and user experience feedback
- Integrate live chat on websites for real-time interaction
- Form customer advisory boards or online focus groups for product feedback
- Implement surveys within mobile apps or websites
- Encourage user-generated content to share customer experiences
- Employ gamification strategies for loyalty programs and rewards
- Explore people tracking technologies like Wi-Fi positioning systems, Bluetooth beacons, heatmaps and facial recognition
- Utilize in-store sensors to monitor customer movement and interactions
- Deploy smart shelves to track product levels and customer engagement
Exercise caution when evaluating strategies and ideas from competitors, as what works well for one retailer may not be universally applicable.
