1、Kearney Consumer InstituteQ4 2023vibrationsGoodWhats in an“experience”?2Brands increasingly compete for consumers attention and dollars 2“Experience”3Experience is ill-definedWhat is an experience(noun)?3Consumers want experience from stores Source:Merriam-Webster;TimeSynonyms:proficiency,happening,

2、adventure,occurrenceSomething personally encountered,undergone,or lived throughDirect observation of or participation in events as a basis of knowledgeAn exciting or noteworthy event that one experiences firsthandA common business goal without much clarity Attentive customer service and clienteling?

3、Technology?Events and displays?Pop-up shops?Entertainment?Connectivity between store and online?4Experience is often conflated with entertainment and bells and whistlesConsumers like to spend on both experience and things(and experiences that involve things)60%51%36%35%35%27%22%12%11%10%Clothes and

4、shoesRestaurantsHome/home improvementElectronicsTravel/tripsMakeup and beautyGamingConcerts and playsSporting eventsSports equipment/toysSource:Kearney Consumer Institute Experience Study,Nov 2023What do you like to spend on the most?Choose 3.4Many things are experiences,including the everyday and s

5、eemingly mundaneWhats a store you like shopping in and why?“I love shopping in Brand B big box because they have everything I could possibly need!”“Brand A discount because its cheap,it has great brands,I can always count on there to find anything I need.”Brand C grocery cause the customer service i

6、s amazing and they always have a great selection.“I love Brand D for groceries.The prices are good and their brand quality is comparable to the national brands if not better.The size of the store makes it easier to shop quickly.”“I like shopping in Brand E retailer because I love their products.They

7、 also do a fantastic job with visual marketing and merchandising so I always want to buy something,even if I dont need it.I smells nice in the store and they have a great playlist but its not so loud that I cant hear someone if speaking to them.”“Experience”“Things”5A good experience balances fricti

8、on and time Experience can add frictionSource:Kearney Consumer Institute Experience Study,Nov 202366%71%59%63%45%47%34%30%41%37%55%53%I like to take my time/browseI want to get through theprocess quicklyClothingHome/home improvementGroceryStoreOnlineStoreOnlineStoreOnline6Consumers want help on thei

9、r terms Source:Kearney Consumer Institute Experience Study,Nov 20236of consumers prefer a good customer service experience that takes longer(rather than a faster experience)Yetof consumers prefer a salesperson leave them alone(rather than greeting them/asking if they need help)6%38%07Shopping helps

10、consumers to feel seen,and provides an outlet or escape Experience can establish an emotional connection with consumers71%Agree shopping allows me to escape the stress of day-to-day life64%63%Agree shopping helps me to feel more confident and secureAgree I use shopping to uplift my mental healthAgre

11、e shopping is a fun activity I do with friends or family69%Source:Kearney Consumer Institute Experience Study,Nov 20238 8Given“experience”can be many things.How can brands balance the many components of an experience?9From:Individual elementsTo:Connected elementsTo:Changed boundaryEnvironmentalTrans

12、actionalEmotionalElements may include:AmbianceLayoutMerchandising Elements may include:ProcessesQueuesPolicies Elements may include:Customer serviceConsumer connectivityRepresentationRedefine experience by the consumers end goal,rather than by elements Source:Kearney Consumer Institute Experience St

13、udy,Nov 2023010Removing friction can impact the whole experienceStarbucks is expanding drive-thru locations and reconfiguring store counters to make pick-up more accessible.It starts with an environment change,but it improves transaction efficiency and provides optionality and engagement.

14、Consider the trade-offs of experience choicesEvaluate the trade-offs across elementsIn the United States,many restaurants have proactive waitstaff attention(often to turn tables faster).In Europe,waiters step back for a self-paced experience.Inventory on the floor,such as in apparel or beauty,can ma

15、ke the transaction faster but the environment less tidy.111111Its not the journey,its the destinationDiluted experience can spark product salesA proliferation of services can lead to consumers questioning their value,including COVID-induced behavior changes.The growth of DIY shows and the challenge

16、to find contractors leads to consumers taking on their own home improvement.Spas and salons with varying quality and consistency led to improved at-home hair dying and nailcare.“Waiting”can be strategic if done wellIn the wrong place,waiting is an obvious detractor from experience.However,it can als

17、o be part of the“experience”such as queuing for a product drop,receiving champagne while waiting,or securing a limited-edition or co-branded product.121212Build connection through respect and familiarityConsumers value feeling seenThe author of this report had a particularly positive experience with

18、 apparel retailer GANNI,which addressed a common concern for many people while shoppingsize.The associate focused on desired fit rather than“size”and the brand itself does not have size prominently featured on the label.Acknowledge consumers through representation The razor category has been disrupt

19、ed in recent years with brands that increase representation in product functionality,usage,and advertising.Adaptive products,from one-handed cutting boards to easy-grip scissors,address specific needs while also often making for a better product experience overall.13What is it?Kearney think tank cre

20、ating thoughtful,consumer-first content and perspectives,assessing existing and evolving consumer behaviors,needs,and decision-makingWhat does it do?Advocates for the consumer Challenges existing assumptions Reframes to ask different questions Generates conversation Translates into action Kearney Consumer Institute(KCI)For further discussion,please contact:Katie ThomasLead,Kearney Consumer IKearney Consumer Institute