Recapturing the art of retail in an era of technology-driven innovation

Introduction

In this section, Mario Tanaguzi introduces Doug Stevens, founder of Retail Profit and they discuss the topic of recapturing the art of retail in an era of technology-driven innovation.

Recapturing the Art of Retail

• The ongoing challenge for retailers is capturing a customer's attention, holding it, and producing a memorable experience that drives disproportionate recall vis-a-vis their competitors.

• Most retailers are falling down when it comes to capturing customers' attention.

• The brain seems to retain art more than commerce.

Why Use the Phrase "The Art"?

• Our brains seem to want to retain art but when it comes to commerce most of it is forgettable.

• Art is a form of storytelling and storytelling goes deep into who we are as humans.

• Corporate mission statements don't really tell a story that connects deeply with consumer needs.

Technology and Consumer Behaviors

• Technology has changed our behaviors but not necessarily what we buy.

The Role of Technology in Retail

In this section, the speaker discusses the role of technology in retail and how it should be used to enhance the customer experience.

Technology and Consumer Desire

• The speaker argues that technology has not driven a greater desire to buy among consumers.

• Retailers who install technology just for technology's sake are not fulfilling any articulated consumer need.

Using Technology to Enhance Storytelling

• Once retailers understand their story, they can use technology in a more surgical way to bring that story to life.

• Dyson may use AI as an advanced method of determining flaws in product design, while Patagonia may use AI to work through their supply chains and find inefficiencies or places where their carbon footprint is exceeding their goals.

The Importance of Human Element in Retail

In this section, the speaker emphasizes the importance of human interaction and experience in retail.

Experience Drives Retention

• Story gets attention, but it's ultimately the experience that builds retention.

• Our memory is fed by about five different tributaries - iconic memory (what we see), auditory memory (what we hear), gustatory memory (what we taste), tactile memory (what we touch).

• Incorporating these aspects into the retail experience will drive greater recall.

Examples of Incorporating Memory Sources

• IKEA serves meatballs to build gustatory memory.

• Apple puts inventory out on tables for people to touch and reinforce tactile memory.

Overall, retailers should focus on enhancing storytelling and incorporating human interaction and experience into their stores.

The Future of Shopping Centers

In this section, Doug Stevens discusses the evolution of shopping centers and how they have lost their commercial and cultural value. He talks about the need for shopping centers to incorporate storytelling and create experiences that are scalable across all locations.

Shopping Centers as Cultural Centers

• Shopping centers were once the center of life in many communities, serving as both commercial and cultural centers.

• Online meeting places have replaced shopping centers as a place to socialize.

Incorporating Storytelling into Shopping Centers

• Shopping centers can drive traffic by incorporating storytelling into their events.

• Events should be centered around themes such as love and kindness, with food, fragrances, and interactive activities.

The Future of Technology in Retail

• There is a new technological revolution happening in retail similar to what happened with social media in 2008-2009.

• Companies are more pragmatic about technology now due to the pandemic and its impact on the economy. They want to ensure that AI is not only beneficial for their business but also safe for customers.

Importance of Scalable Experiences

• Experience needs to be scalable across all locations for it to be effective in creating customer loyalty.

• Flagship stores or interactive pop-ups alone cannot create an ultimate customer experience; every location must contribute towards it.

Conclusion

Doug encourages businesses to focus on creating scalable experiences that incorporate storytelling rather than relying on flagship stores or interactive pop-ups alone.

Doug's Background and Interests

In this section, Doug Stevens talks about his background and interests, including his love for music and guitar.

Doug's Background

• Doug is the founder of Retail Prophet.

Doug's Interests

• Doug is a struggling guitarist with an unrequited love for music.

• The disc and guitar behind him are limited prints that his wife bought him for his birthday.