Creating Customer Experiences: Flagship Toys Explores How a New Type of Toy Retailer Can Succeed in the Experiential Economy

 

The world is changing rapidly, and so is the economy. Today, we are in the age of the experiential economy, where customers crave more than just a product or service. They want to be part of an experience that they will remember long after the transaction is complete. This shift has led to the emergence of retail stores that provide interactive experiences that allow customers to engage with the merchandise sold in their stores. In this article, we will explore the concept of the experiential economy and why it's crucial for the survival of retail.

The Experiential Economy

The experiential economy is a term used to describe the shift in consumer behavior from a desire for material possessions to a desire for experiences. In the past, people would buy products to fulfill their needs or desires. However, today, customers are willing to spend more money on experiences that allow them to connect with others, feel a sense of accomplishment or personal growth, or simply have fun.

One of the reasons for this shift is the desire for social media content. People want to share their experiences with others on social media, and having unique experiences to share has become a status symbol. This desire for experiences has given rise to the experience economy, where businesses compete to offer unique and memorable experiences to their customers.

While consumers are seeing more of this concept being implemented in stores today, the concept isn't new. For example, Apple stores are not just places to buy iPhones and Macs; they are also places to learn about the latest technology, attend workshops, and get hands-on experience with Apple products. Nike stores offer personalized fittings, in-store events, and the opportunity to test products on a specially designed treadmill.

The Importance of Experiences in Retail

In a world where customers can buy almost anything online, retail stores need to provide experiences that cannot be replicated online. Retail stores that provide experiences that allow customers to interact with products create a sense of connection between the customer and the brand. This connection can lead to increased brand loyalty and repeat business. Customers who have a positive experience with a brand are more likely to become advocates for the brand and share their experiences with others.

How Can The Dying Toy Market Benefit?

The idea of a toy store that provides experiences is not new. Toys R Us was a pioneer in this area, offering in-store events, play areas, and interactive displays. However, the company failed to adapt to the changing retail landscape and ultimately filed for bankruptcy in 2017.

A new type of toy retailer that focuses on creating customer experiences can learn from the mistakes of Toys R Us and capitalize on the growing demand for experiential retail. Here are some ways a toy store can create experiences that allow customers to interact with products:

1. Play Areas: Play areas provide children with the opportunity to test out toys and play with them before making a purchase. The play area can be themed around a specific toy or character, creating an immersive experience.

2. Interactive Displays: Interactive displays allow customers to engage with products in a unique way. For example, a toy retailer could create a display that allows customers to build their own Lego creations and display them in-store.

3. Workshops: Workshops offer customers the opportunity to learn new skills and create something with their hands. A toy retailer could offer workshops on building robots, creating slime, or making jewelry.

4. Events: Events, such as toy and comic conventions, provide an opportunity for customers to come together and share their love for toys and hobbies. A toy retailer could host events like toy swaps, cosplay contests, or board game tournaments.

In addition, a toy retailer that provides experiences can collect valuable data on customer behavior. For example, a store that offers a play area can track which toys children interact with the most, which can inform future purchasing decisions. Or a store that offers a virtual reality experience can track how long customers spend in the experience, which products they interact with, and what questions they ask. This data can be used to improve the customer experience and inform future product development.

Conclusion

The experiential economy is here to stay, and retail stores that provide experiences that allow customers to interact with products are leading the way. Retail stores that choose to not adapt will go the way of countless retail brands that have sank over the last decade. One of the retail models that has been hardest hit has been toy stores, particularly mom and pop toy and hobby shops. For most communities, stand alone toy stores are long gone and the few that remain can't compete with online retailers such as Amazon or Walmart. Our hope at Flagship Toys is that toy brands and mom and pop toy stores see the value in the concept of immersive interactive shopping experiences and move away from the "category killer" model that has proven to be a trend past its prime.

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