The traditional brick and mortar storefront has changed drastically…

First, it was the rise of the Internet and the start of mass-comparison shopping – then came the smartphone, and comparison shopping started to happen while customers were physically in your retail store.

We’re so used to researching and shopping online, that even when we see something we might want in a brick and mortar location… we still want to do some research, check for recommendations via social media, and see if we can find a better deal somewhere online…

Forbes reports that 18% of retail purchases are now taking place on the Internet…

Personally, I think it’s more.

But what does this mean for brick and mortar businesses?

It means they need to step their game up if they want to keep customers interested.

If the same products are available online for the same (or better) prices and more convenience, getting people into the physical storefront has to be about something else entirely…

They have to make it about the experience of doing business in person.

Back in July 1998, B. Joseph Pine II and James H. Gilmore published an article titled The Experience Economy…

In this breakout article, they predicted a shift to a new, experience-based economy – where businesses must provide memorable experiences to set themselves apart from other commoditized competitors.

In this new economy, the “real” product is the experience itself, not just the item or service being purchased.

The authors foresaw much of what has become a reality today: increased competition, increased availability and convenience, and the commoditization of former “perks” like warrantees, service, etc.

Now, Pine and Gilmore may have been a little overzealous in their predictions, but they definitely got plenty of things right… and it’s more relevant today than ever before.

To get those creative juices flowing, I’d like to introduce you to 3 companies keeping brick and mortar business alive with customer experience:

1. Apple

Of course the innovation powerhouse that is Apple (and Apple Stores) would make this list…

The Genius Bar is a perfect example of adding an experiential element to a storefront… that even goes beyond their existing reputation for awesome customer service.

Not only does the Genius Bar provide a wholly different experience (education and training) than simply shopping in an Apple Store, but also leads directly back to people buying Apple products…

Customers can sign up (and pay for) Genius Bar support without actually buying any products – but Apple reports that 1 in 10 people purchase something after receiving help from the Genius Bar…

It’s a reason for people to come into the brick and mortar location AND is helping drive sales. The “product” here is expertise, service, and of course, experience.

2. Whole Foods

A notoriously “hip” company, Whole Foods is capitalizing on the recent “shop local” trend by incorporating local produce, craft beer, meat, and other locally made goods into their brick and mortar stores.

They say their aim is to source 20% of each store’s inventory locally, working with local suppliers across nearly all of their product categories…

This means that different locations are carrying different goods, tapping into the sense of community pride for local shoppers… and letting out-of-towners get a taste of local fare from an internationally known company.

This is a whole new angle of experience for a company of this size.

It adds an element of exploration to shopping at Whole Foods, as well as a sense of personal connection to the local economy (making them a more trusted source than other “corporate giants”).

In short, it makes shopping there feel more fun AND more responsible.

3. Restoration Hardware

Since 2010, Restoration Hardware has massively changed its entire approach to brick and mortar business, focusing on a “gallery” style setting to showcase high-end furniture and other home décor.

And sure, shopping for items to transform your home can already feel pretty special, but this company has really gone above and beyond…

They’ve moved locations into beautiful historic buildings, arranged storefronts to feel more like galleries than sales floors, and trained staff to help customers “curate” and customize their purchases for a truly transformative experience.

Just being in the store is a memorable experience in itself… and that goes a LONG way in getting people through the door.
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These three companies had the foresight (and the bravery) to put experience at the top of their list… and guess what?

It’s paying off!

To keep up with the ease of online shopping, brick and mortar stores are going to have to continue to differentiate themselves based on the experience of visiting the physical place…

Competing on price won’t cut it… They can’t match the convenience… They can’t beat the selection… So what else is left?

To stay relevant and successful in a sea of online competitors, you’ve got to give people a reason to come to you – and that reason will ALWAYS be experience…

In your corner,

Charlie