Enhance Experiential Retail with Digital Payments

Empty storefronts have become all too common with the rise of ecommerce. The dilemma is how to get people to embrace physical shopping when they can purchase virtually anything with just a few taps on their smartphones. As the new world of commerce evolves, retailers are responding with new strategies, finding ways to make their physical spaces more than just places to make purchases. With the experiential retail model, they're making them destinations.

What is Experiential Retail?

Merchants embracing experiential retail transform spaces, create environments that appeal to the senses with added sights and sounds, and engage customers in exciting new ways. Experiential retail often involves blending the digital and physical worlds, leveraging technologies like virtual reality and augmented reality (VR and AR) to create unique experiences and make shopping fun.

Adoption of this innovative model is gaining momentum. UnivDatos reports that the global experiential retail market value was USD 84.95 billion in 2023, and it is growing at a 14.02% compound annual growth rate (CAGR) from 2024 to 2032. Analysts confirm that ecommerce competition is driving the trend, but retailers are also using the strategy to foster customer relationships and build customer retention.

Experiential Retailing Examples

Because executing this strategy can range from relatively simple changes to stores to highly immersive experiences powered by intelligent technology, experiential retailing examples are abundant. In general, experiential retail:

• Helps Customers Learn

  Some merchandise supports particular activities or skills. What better way to acquire new customers than to show them how to use it? Craft or home improvement stores can hold workshops, demonstrations, or offer individual instruction. A cosmetics store can show customers how to apply makeup to achieve different looks, and a pet shop team could hold classes on dog grooming. Retailers can use step-by-step video or AR/VR, or they can take the opportunity to build relationships with face-to-face interaction.

• Allows Customers to Try

  Satisfaction with a purchase requires that it's the right item for the customer. Retailers can set up displays that allow shoppers to try a putter on a green, use kitchen appliances, or prove to themselves that vacuums are up to the challenge of different types of debris scattered on the carpet. This type of retailing is interactive and builds confidence in the purchase.

• Inspires Customers to Imagine

  AR/VR empowers customers to "see" how furniture will work in their homes, how an out-of-stock dress will look via a virtual fitting room. They can enter virtual spaces that highlight products, tell a brand story, and create a bridge to purchase.

• Lets Customers Have Fun

  Retail spaces can transform into entertainment and activity venues. Is there room for a rock wall that customers could climb if they have enough loyalty rewards? Could families enjoy short videos while a parent tries on apparel? If there's space in the store or nearby, retailers can use it to create experiences their customers will love.

The Benefits of Experiential Retailing

A well-planned strategy will help retailers see customer satisfaction and retention increase. But there are even more benefits, including:

• Brand Awareness

  Unique experiences allow retailers to differentiate their businesses and stand out in competitive markets.

• Increased Foot Traffic

  New customers may find their way to the store out of curiosity or to have new experiences.

• Word-of-Mouth Advertising

  Customers share their positive experiences with their friends and family, giving retailers a highly effective marketing channel.

Frictionless Payments are Essential to Experiential Retail

While the activities inside the store will change and evolve to offer compelling experiences, the store is, in fact, still a place to sell. Retailers need to plan for frictionless payments that don't detract from customer experiences. Unattended devices give customers autonomy as they explore the retail space and make purchases. Whether at self-checkout or with assistance, retailers should accept all payment methods, from traditional payment cards to contactless payments and alternative payments. The key is to make quick, convenient payments a part of the shopping journey but keep the focus on the activity or experience that's the reason the customer came to the store.

An Android-based payment technology platform gives retailers the flexibility to add payments seamlessly to any experience. We offer Android-based AXIUM, which allows retailers to accept all payment methods in-store, expand payment device capabilities, and even run business applications on payment terminals to enhance customer experiences. Contact us to learn more.