Introduction

Retail stores are perpetually seeking innovative ways to enhance the in-store experience, extend customer dwell time, and encourage shopping in person. As consumers become increasingly discerning and adept at spotting overt sales tactics, brands must adopt more sophisticated approaches to retail design and brand experiences.

One such approach is interactive retail. As the demand for personalized experiences grows, these retail environments present unique opportunities for brands to connect with their audience in meaningful and memorable ways. In this blog post, we’ll explore how interactive retail is reshaping the in-store experience and how to avoid gimmicky activations that might attract attention but fail to align with your brand’s goals.

What is Interactive Retail?

Interactive retail is a design approach that fosters interactivity through touch, movement, sight, or sound, or a combination thereof.

For instance, Sephora offers virtual try-on screens or mirrors that allow customers to see how a particular shade of lipstick or blush looks on them without physically applying the product. Another prime example is Nike’s flagship store in New York City, featuring a digital basketball court where shoppers can shoot hoops and play games while browsing the merchandise. These immersive experiences encourage customer participation and leave a lasting impression.

Benefits of Interactive Retail

When executed effectively, interactive retail enhances customer engagement and experience, boosts brand awareness and loyalty, and improves sales and customer retention. Interactive displays and experiences provide quick answers to questions and the ability to compare products rapidly. They also help customers feel more confident in their purchases by allowing them to try or virtually experience the product before buying, thereby accelerating the buyer’s journey and reducing return rates.

Five Types of Interactive Retail

Mobile Apps

The Starbucks app exemplifies how mobile apps can revolutionize the customer experience. By eliminating friction in the coffee-buying process, the app allows customers to order, pay, and pick up their coffee seamlessly. Other brands use mobile apps to facilitate online orders for in-store or curbside pickup, provide in-store navigation, and push personalized offers and recommendations based on past purchases.

Augmented Reality

AR is a prevalent tool in interactive retail. The IKEA Place app allows customers to visualize furniture in their homes, while brands like Adidas, H&M, Topshop, and Neiman Marcus use AR tools to enhance the in-store experience. By scanning a code with their phone or entering an augmented reality fitting room, customers can visualize how clothes would look on them without physically trying them on.

Smart Mirrors

Smart mirrors elevate the customer experience in fitting rooms by allowing customers to request different sizes and colors, adjust lighting, and even share photos on social media. Brands like Nordstrom, known for exceptional customer service, adopt this technology to help customers find the right fit and color quickly, ensuring what they see in the fitting room matches real-world settings.

In-Store Beacons

Retail beacons, used by Macy's, Walmart, and Sephora, connect with customers' smartphones via Bluetooth to offer personalized deals, product recommendations, and real-time store layout information. These small, battery-powered devices send signals to customers within proximity, enabling retailers to track movements and preferences, improve the in-store experience, and create more targeted marketing campaigns.

Low-Tech Interactives

Not all interactions need to be digital. Some of the best interactive retail displays are analog, such as 2D questionnaires that guide customers to the right hiking shoe style or experiential displays comparing the size of Shaquille O’Neal’s hands to basketballs. These non-technical methods can engage and delight customers just as effectively.

Ensuring Success in Interactive Retail

To ensure interactive retail experiences are valuable and not gimmicky, they must be relevant to the customer’s needs and align with your brand’s story and values. Starbucks’ mobile ordering caters to customers needing a quick coffee pick-up, while IKEA’s AR tool helps shoppers visualize furniture in their homes. Avoiding cheap and cheesy activations done merely for attention is crucial; instead, focus on meaningful customer experiences.

Partnering with an expert in retail design, brand activations, media, technology, and digital fabrication is essential. A knowledgeable partner can help ensure your store leverages interactive retail to its fullest potential, creating engaging and effective experiences.

Ready to Incorporate Interactive Retail?

As interactive retail continues to evolve, staying ahead of the curve is vital. With options like smart mirrors, retail beacons, and touch screens, brand managers and CMOs can choose approaches that meet their goals while appealing to savvy consumers.

At NXT Interactive, we combine technical expertise with creative aesthetics to develop engaging experiences tailored to any space. We thoroughly research your business to ensure our designs are informed and impactful. If you’re ready to transform your in-store experience, contact us to learn how we can help.