DATA POINT: CROSS-GENERATIONAL CONSUMERS ALL SEEK IN-STORE EXPERIENCES

DATA POINT: CROSS-GENERATIONAL CONSUMERS SEEK IN-STORE EXPERIENCES OVER ONLINE

In an increasingly digital world, the trappings of physical spaces remain a significant draw to cement brand affinity among all age groups.

More than 60 percent of US consumers said they are more likely to shop physical retail, versus online, for exclusive in-store experiences, a new survey conducted by Studio Butch shows.

Belied by their digitally dominant lifestyles, Gen Z and Millennial consumers were essentially on par with older generations in their preference for in-person experiences, suggesting that the empirically-driven abandonment of brick and mortar may warrant reconsideration.

“Many brands are rethinking their channel strategies, and specifically pivoting focus to in-person experiences and investment in physical spaces,” says Rachel Wright, account director at Studio Butch.

“There’s an undeniable value in creating an immersive journey–the feel of fabric, the scent of a fragrance, personalized guidance from an associate–that online interactions simply can’t replicate as the building blocks of lasting brand affinity.”

When asked to rank their top three drivers to shop in-person versus online, the survey found that hands-on product interaction was the largest single pull for all age-groups. While perhaps unsurprising, the unanimous ranking offers an opportunity for digitally-native brands to potentially garner larger market share by eschewing online-only models—even if only for targeted, short-term pop-ups.

This strategy is no secret to sophisticated brand-builders, who since the takeover of online commerce, have been leaning into “real life” experiences to differentiate, and most importantly, connect with their customers to build loyalty.

In a previous insight, Studio Butch found that seven out of ten US consumers said in-person experiences are most likely to increase their brand loyalty compared to online, or virtual experiences.

“We expected a flood of brands seeking in-person experiences immediately post-COVID, but now we’re seeing a sustained renaissance.” says Chris Giovarelli, Studio Butch strategy director. “Now more than ever, our client roster is filled with digitally-native brands launching, or expanding, their foray into physical world expressions.”

But simply showing up in the real world isn’t enough. According to the data, the second largest driver influencing consumers to shop in person vs. online is a unique and attractive environment.

Notably, it was ranked as the number one influence by the Gen Z segment.

And that’s where strategy and creativity must converge, ensuring investments in physical experiences—temporary or permanent—both pique the eye, while also providing ROI. Or as one retail executive recently put it: “anyone can create a pricey splash at a flagship, the talent is making it work long-term in the fleet.”

This is an important balance for many veteran retailers that struggle to remain relevant, and also nascent brands investing in short-term pop-ups intended to boost the brand’s trajectory in the market.

Rounding out the top three ranked influences of the survey reveals a potential trifecta to in-person experience: member services and benefits. The high ranking of this feature, which ostensibly could be offered online, suggests that consumers are eager to establish valuable two-way relationships with brands that specifically reciprocate in-person.

This vision for membership—broader than newsletters and discount codes—opens up a wide-range of opportunities for brands of any size to better know their core consumer, while also expanding that reach.

When segmented out, and recombined, the data reveals that the cross-generational US consumer landscape is perhaps more unified in some of its preferences than perhaps anecdotally suggested. The majority of US consumers aren’t only willing to shop in person, but are seeking in-store experiences that reinforce their brand loyalties.

xoxo

The Studio Butch survey was conducted online to a nation-wide representative sample of the US consumer population age 18 and older. More than 550 responses were collected for the findings, with a margin of error of five percent.

At Studio Butch, we help global and boutique brands build customer affinity through experiences, spaces and content. Let’s connect to talk about how our unique combination of strategy and creativity can help your brand.

INSIGHT: RECLAIMING CUSTOMER LOYALTY THROUGH POWERFUL POP-UPS

HI, WE’RE STUDIO BUTCH

We help global and boutique brands build customer affinity through experiences, spaces and content. Let’s connect to talk about how our unique combination of strategy and creativity can help your brand.