Here’s why you shouldn’t doubt the power of experience selling

How many times have you heard it said that people are less interested in buying things or stuff these days and more interested in buying experiences?

The proliferation of lifestyle business selling - everything from cookery courses to ballooning, would suggest that we are spending our money differently.

In a time poor society when most of us have too many things anyway, buying experiences creates memories, and while things wear out or go out of fashion, memories last.

Recent research from San Francisco State University (2021 journal of Positive Psychology) seems to back up the theory that not only do people value the things they buy less over time, but the reverse may actually be true for experiences.

So, this sounds like good news for all those lifestyle businesses, but it sounds like terrible news for retailers...

Or not?

Retail evolution

A few years ago, I was in a lifestyle store in the West country while on holiday with my family (three kids ranging from 12 to 23 years old at the time) and I was struck when each one came back with something they wanted to buy.

I remember thinking this place had us very well covered from a targeted merchandising point of view. It knew its target market and we were it. 

This is lifestyle retailing. Lifestyle retail and merchandising started with the opening of department stores and then brand stores.

Liberty’s is possibly the most well known, and also my favourite example. They sell many different things but most of all they sell a lifestyle.

Department stores, perhaps even more than others, have had a hard time over the last few years so perhaps the new version of lifestyle retail will take a different form.

These days when we describe our lifestyle, we talk about what we do rather than what we own. We listen to music rather than own records, CD’s, downloads etc, we cook rather than talk about our batterie de cuisine. 

So perhaps this is where lifestyle and experience retailing come together?

Experience sells

If you haven’t been to the Westfield shopping centre in London recently, then I'd recommend that you do.

It's not only the biggest shopping centre in Europe, but there’s a new retail concept there that is a great experience in itself. The fact that it contains some of the best places to eat in London doesn’t hurt either, that’s all part of the experience too.

You don’t get that online.

Situ Live is a venue in itself. It’s a new retail concept that features live theatrics and storytelling around six curated arenas. ‘Fitness & Wellbeing’, ‘Connected Home’, ‘Nutrition Kitchen’, ‘Entertainment’, ‘Home & Mobile Working’ and ‘On the move’.

It encourages you to engage with and learn about products in a way some traditional retailers have struggled to do. Situ Live’s QR code system then allows people to compare, discuss, and buy from the brand on-line at their own pace, exactly as consumers have been saying they want to for years.

So perhaps this is the new lifestyle retailing that the industry should get behind. Situ Live is great fun and shows that in the end, experience sells.

Experience selling however is not a new concept. The French audio-visual and book seller FNAC (Fédération Nationale d’Achats des Cadres.) started in 1954 near Paris as a member only discount buyers’ club in a second floor flat. Today it has over 180 stores in Europe.

FNAC holds “forums” throughout the year in person, also now as online events and concerts that allow customers to see, listen and interact with authors, musicians, directors, and artists that have included Keane, Ben Harper and David Bowie.

Some stores also sell tickets to events, and FNAC have a 1.8 million member loyalty programme.

If anyone doubts the power of experience selling the HMV chain pulled out of France altogether after only six months in the 90’s as a result of going head-to-head with FNAC.

While Virgin Megastores stayed in France, FNAC built a 32,000 sq ft store nicknamed “The Cathedral” in response to the Virgin Megastore concept.

Perhaps not all experience selling needs to be on that scale, but engaging with our customers’ interests, music, cars, books or cooking certainly seems to work on any scale. It’s a conversation about a shared interest not just a sales pitch, and that builds trust.

When we share experience with our customers, they’re not just our customers but we have something in common. Perhaps a shared customer experience is the best one of all.

About the author

Danny Rappaport leads the technology consulting division of PMC Retail, supporting their clients on IT and business strategy projects.

He has a wealth of experience in providing technology and business services to the retail, finance and CPG sectors, and is extremely passionate about the markets and opportunities that exist for customers in today’s global digital economy.