In recent years, we’ve seen the retail model flipped on its head. Mainstay stores, which previously dominated the market, are now closing their doors. With the economy in its best shape since the 1990s, there certainly isn’t a lack of cash flow available. So what’s the issue? Why are companies like Sears calling it quits? Our take: The customer experience. More specifically, location-based entertainment (LBE).
So why is LBE important?
It’s no longer the genesis of the Internet age. Americans are very much connected, and retail locations are competing with online merchants to make acceptable value propositions for their target audiences. People are consistently choosing the convenience of shipping over physically going to a retail location. The advent of two-day shipping has only expedited the disconnect between brick and mortar and its original customer base. What needs to happen for a paradigm shift from the current spiral? Finding new ways to entice and delight shoppers.
The basic premise of location-based entertainment is threefold: Providing a reason for people to gather at a location that’s conducive to retail, providing extra value for potential customers, and creating an additional opportunity for brands to stay top of mind. Whether it’s the bowling alley at the mall or an in-store experiential kiosk, LBEs attract visitors and keep them there longer. Physical retail needs to capitalize on what gives it an upper hand – Space. People cannot only buy products in a store; they also have the opportunity to have an entertainment experience that’s hands-on… Something that e-commerce cannot give them.
Focused On The Future
Retailers across the country seek to keep people shopping in person and for longer periods of time. LBEs address this need, and provide a solution that promises the longevity of your industry. It all starts with your technology infrastructure. A few weeks ago, we mentioned how many buildings do not even provide storewide WiFi for customers. If you are to move forward with the future of retail, technology must be at the forefront of your strategy. By 2023, location-based entertainment could be a $12 billion industry. Wouldn’t you like a share of that value?
As a retailer, now is the time to act. Putting together a technology infrastructure that is conducive to a better customer experience can be tough. Make sure you do it right by working with a seasoned professional in this space. If you would like to connect with us regarding improving your store’s technology initiatives, we encourage you to utilize our Calendly scheduler that is in the upper right-hand corner of this page or contact us here.