Technology

The direct impact in-location experiences have on a brand's objectives

Bobby Marhamat, CEO of Raydiant, explains why retailers should invest substantially in improving the in-location customer experience, particularly during trying financial times.

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January 21, 2021 by Bobby Marhamat — CEO, Raydiant

Customers aren't satisfied with spending their money in a cold, utilitarian way — when they give you their business, they want a memory in return. This is one fact that COVID-19 has not changed.

According to our State of Consumer Behavior 2021 report, 46% of surveyed consumers still prefer visiting physical locations over shopping online, despite the challenges that the past year has posed. 26% of consumers who prefer visiting physical locations do so because shopping, eating, or engaging in leisure activity in a physical location offers a unique experience that they cannot get from staring at a MacBook.

When a customer expects a positive in-location experience and receives it, 90% of them said that they will likely return to that business. 61.4% of respondents said they'd also be willing to spend more at a business that provided a positive experience.

It should come as no shock that positive customer experiences bode far better for a business' success than disappointed customers.

Yet, business owners may be hesitant to invest substantially in improving the in-location customer experience, particularly during trying financial times. As you'll see, this could be a grave mistake for businesses, particularly considering customers' desire for fresh, memorable experiences.

A proven framework for measuring success

The outcome of a great customer experience should be to influence customer behavior, which in turn moves the needle on your organization's objectives. Your goal may generally be to increase:

● Customer visits to your business.
● Customer spending per visit.
● Customer interaction with your brand in all formats (in-location, online, through loyalty programs, etc.).

Here's a framework that can be applied to each and every experience you create.

"(Company name) will offer an (experience) to customers because we believe it will lead to (behavioral change). By influencing the customer's behavior, we believe it will lead to (objectives). To measure our success, we will track (key results)."

Managers of in-location experiences will tailor the framework to fit their methods for influencing consumer behavior, as well as their desired outcomes.

Every offline business can deploy several micro-customer experiences within the greater experience of being in the physical location. One micro-experience may be the way that a customer checks out on their own, while another may be targeted towards customer immersion, like using an interactive sign.

Each micro-experience has a specific goal. For self-checkout, it is to funnel customers through the business efficiently while minimizing contact with employees—pandemic safety 101. For experiences centered on customer immersion, the goal may be simply to have the customer remember their time at your business fondly. Interactive signs that allow customers to scan a QR code and receive discounts, play trivia, and share their visit through social media can be a memorable feature of any business.

Micro-experiences collectively serve to enhance brand loyalty, enhance return-on-investment for each customer, and to establish your business as an experience provider rather than just a business.

How do in-location experiences impact your business?

Hitting your objectives is the reason why you are investing in customer experiences. Key results help track the effectiveness of your in-location customer experiences towards achieving those objectives.

At the macro level, there are several objectives that all in-location businesses hope to achieve: more customers, who visit more often, and who spend more money. You may track these goals through key results such as the number of customers that come through your door and your total revenues.

According to our State of Consumer Behavior 2021 report, providing customers with positive in-location experiences — whether it is an exclusive in-location discount, a positive customer service interaction, or otherwise—is the surest way to achieve these objectives.

A positive experience increases the likelihood of customers returning — which means your customer value can increase.

90% of respondents to our survey said that they were likely to return to a business where they had a positive experience. For some customers, a positive experience could mean feeling safe in your business. For others, a visually-appealing atmosphere or responsive customer care could be the defining feature of a positive experience.

With a positive in-store experience, customers are more likely to spend more at each visit — meaning more revenue for your business.

61.4% of respondents to our survey said they're more willing to spend more at a business that provides a positive in-location experience. Who wouldn't be inclined to support a business that makes them feel good?

Make a customer feel special, serve them faithfully, and give them a memorable experience to hold onto and come back for. In return you may be rewarded with greater per-customer revenue.

A positive customer experience makes consumers more likely to purchase from you online, driving lifetime customer value.

65% of respondents to our study said that they would be more likely to interact with a brand's online store if they had a positive in-location experience with that same brand.

If the in-location experience was high-quality, why would the online version be any different? You can assume that the inverse of this is true as well — a poor in-location experience translates to a poor online product.

This underscores the importance of providing consistently impressive in-location experiences, as doing so could impact all aspects of your business.

The future is all about in-location experiences

Data provided by our State of Consumer Behavior 2021 report reinforces what you already know as an experience provider: customers assess your brand not just on the tangible goods or services you provide, but on how you make them feel.

In-location experiences define your brand, and ultimately determine how customers connect with your business. If those experiences leave a lasting positive impression, a customer is more likely to return, is more likely to spend more, and is more likely to be loyal to your business.

Follow the framework, deploy micro-experiences with a strategic objective in mind, and assess the efficacy of your strategy through key results. Our findings suggest that success will follow.

Bobby Marhamat is CEO of Raydiant