Like the celebrities on reality TV’s “Dancing With the Stars,” retailers must push constantly to improve each week or they risk being voted off the stage.
That was the message from FRCH Design Worldwide, during “Dancing With The Stores,” a lively presentation to a packed house at the National Retail Federation (NRF) Convention and Expo in New York last month.
“Retailers can stand to learn a thing or two about the celebrities on ‘Dancing with the Stars,’” said James Tippmann, chief executive officer at FRCH Design Worldwide, an internationally focused design, architectural branding and communications firm that works with some of the world’s most recognized brands in fashion, hospitality, retail, consumer brands, restaurant, and leisure entertainment. “By continuously challenging yourself to venture outside of your comfort zone retailers must stand before a judging panel each and every day (customers, investors, competitors, Wall Street). You have to perform better each day or you run the risk of being eliminated.”
According to Tippmann, there is an overriding sense that the stakes have never been higher in the retail world. “We live and shop in a very different world today.” Indeed, quoting from a recent Vanity Fair article, Tippmann said, “Consumers are increasingly more savvy and brand fickle. The pace of retail is getting faster and faster and while engaging your customer is one thing, keeping them engaged is quite another.”
Consider these examples of the changing marketplace: Twelve years ago there was no Ebay. Nine years ago there was no Google. Four years ago there was no Facebook. One year ago there was no Wii.
After eBay, “retail would never be the same,” Tippman pointed out. “Everyone became a retailer. As the dominant search engine on the web, Google conducts millions of searches daily. Even the Cambridge Dictionary has accepted the word ‘Google’ in its latest editions.”
Meanwhile, in one year, the popular Facebook site jumped in the rankings from the sixtieth to the seventh most visited site on the Internet with 85 percent of college-age students engaged. There are 45 million active users,” Tippmann reported. “And in just 10 months, 13 million Wii units were sold worldwide. Amazon.com reported that when the hard-to-find units were actually in stock, the site sold 17.3 Wii units each second during the past holiday season.
“So what does this mean for retail? It means that nothing is secret or sacred,” Tippman said. “Information is only a click away. Customers are more interconnected than ever. They are savvy and getting savvier. They are becoming more and more resistant to marketing, advertising and media messages. They’re doing their own research and they make up their own minds about who they will, and who they will not, buy from. They can be your biggest advocate for a brand or your biggest enemy.
“Retailers must be committed to creating great retail performances, performances that incrementally add value to their brand over the long run,” he continued. “Iconic brands are not built overnight. They are not the result of a single advertising campaign or product launch. The only way you will get anywhere is to continuously improve and challenge yourself.”
Jim Lazzari, chief architectural officer of the firm, added, “Retailers must embrace change and respond to a changing world and changing consumer.” He offered the following insights into the elements that traditionally define a retail icon and how those elements are being challenged today:
Communicate Your Brand
“Communicating your brand is no longer limited to conventional marketing and advertising. It’s about knowing who you are and what you stand for. It’s bringing who you are to life in everything you do, from the first impression to the last goodbye,” he said. “Target, with their ever-changing advertising campaign, communicates who they are and what they stand for and is instantly recognizable.
“Communicating your brand is going to involve re-evaluating traditional marketing and advertising. Viral marketing can be wildly successful. Websites like YouTube and Facebook can make or break a brand.”
Enhance the Customer Experience
“The customer experience means nothing unless it’s unique and one-of-a-kind. Consumers thrive on the idea of exclusivity. Macy’s leverages its heritage and rich history through events such as the annual Thanksgiving Day parade, annual flower show and the most magical and dedicated experience each year: Santaland.”
Celebrate Service
Iconic retailers celebrate service. “With the amount of choices available, in any category, anything other than exceptional service just doesn’t cut it. It is no longer good enough to meet expectations. Great service has to exceed those expectations. The Ritz Carlton inspired and defined customer service for hospitality and other industries. At Nordstrom, the piano is a physical representation of their commitment to serving their customer.”
Create a Proprietary Language
“Crate & Barrel has a unique story behind every product that it sells which translates easily in the store, catalog and online. Bricks-and-mortar are no longer the only the way a retailer exists. The growth of online retailing is at critical proportions. You must have a language that works in both the physical and virtual worlds.”
Deliver Exciting Product
“Delivering exciting product is all about the benefits to your customers not about the product features. Consumers are constantly searching to stand out with customizable things that they wear, consume or own. With personalization you build an emotional bond. Think of the iPhone. It bundles all of our needs into one easy-to-use, intuitive product.”
Tell a Story
“Be compelling by telling stories that no one else can about products that will make your customers live better.”