“The number of ‘bricks and mortar’ entertainment stores has reached a record high – despite rising online sales of music and film,” the BBC reports. There are now some 14,800 shops selling CDs, DVDs and Blu-ray, with supermarkets and high-street chain sales leading to the rise … The number of stores selling music and video has more than doubled since 2009, with DVD and Blu-ray available in 14,852 stores in 2015 and CDs and vinyl in 14,727.
Kim Bayley, CEO of the Entertainment Retailers Association: “Conventional wisdom has always suggested that the internet spelled the end for physical entertainment stores, but these numbers show that traditional retail still has a place, particularly for impulse purchases and gifts. After all, you can’t gift-wrap a download or a stream.”
Bayley adds that “the trend is clear – just as the internet has demonstrated that accessibility and convenience are key to selling entertainment, physical stores are demonstrating that if you put entertainment in front of people, they will buy it.”
User experiences fall short when they are inordinately focused on transactions, says Michael Schrage of MIT and author, most recently, of The Innovator’s Hypotheses. In a talk entitled, Why UX SUX, at Columbia University’s Brite ’16 conference, Schrage said the emphasis should be on how interactions with the brand measurably transform customer perceptions and expectations.
The question, then, is which transformations are best for both customers and brands? The challenge, in that sense, is to re-design customers for the trajectory of their sense of themselves and who they want to be. Schrage cited Chik-fil-A and its offer of a free dessert to families who put away their cell phones during dinnertime, and Lego, with its focus not so much on its plastic bricks but rather the future of play itself. He also mentioned Netflix’s re-inventing its customers as binge viewers.
Tracking trajectories and transforming expectations requires integrating innovation with the experience and expectations, Schrage says. Achieving this is less about having a strategy than it is a culture that’s open to transcending the transactional experience, and transforming experiences in tandem with the customer trajectory.
Speaking at Brite ’16, Daniel Lubetsky, founder of Kind, says that 90 percent or more of those who buy the snack bars are unaware of its social mission, which, naturally, is to promote kindness. The priority is that they buy into the brand as a quality product. That said, a community of kindness is promoted in at least three ways:
1) Kindawesome Cards. When someone is kind to you, visit howkindofyou.com and have a kindawsome card, good for two Kind bars, sent to him or her. It’s on the honor system. 2) Kind Causes. A website where you can nominate causes. Each month the “community” votes for a favorite, which gets $10,000. 3) Kind Foundation. A celebration of “kind” people who are making a difference in their communities, with a total of one million dollars in awards.
The New York Times: “Sugru is a moldable glue. It looks like Play-Doh, can be shaped around any object, sticks to almost any material, is waterproof, is heat-resistant and dries to a silicone rubbery finish in 24 hours. Its ability to bond to virtually any surface — wood, glass, metals and ceramics among others — and its moldable nature make it unusual in the world of adhesives, sealants and glues.”
“I wanted to design something that was so easy and so fun to use that more people would consider fixing things again,” said Jane Ni Dhulchaointigh, the Irish entrepreneur behind Sugru.
“Ms. Ni Dhulchaointigh said Sugru could withstand temperatures as high as 356 degrees and as low as minus 58 degrees, making it durable indoors and out. It will not melt, freeze, soften or harden. It can be thrown into a washing machine or dishwasher, and even soaked in seawater. If a user makes a mistake, a sharp knife can be used to cut through Sugru’s rubbery surface, removing it without damaging the surface of the repaired item.”
“Sales topped $5.5 million in 2015, up from $3.4 million in 2014 and $250,000 in its first year in 2010. Ms. Ni Dhulchaointigh expects sales to exceed $10 million this year and $60 million by 2020. It is now sold online to more than 160 countries and through 19 brick-and-mortar retailers in 6,050 stores in four countries. In the United States, 10 retailers carry the product in 4,500 stores.”
The New York Times: “At Back Label Wine Merchants on West 20th Street in Manhattan, you won’t get very far into the handsome shop before you are greeted cheerfully and offered assistance. The sales clerk may engage you in conversation to determine your tastes and what you are seeking, or will recognize that you are browsing and don’t want a hovering presence.”
“It’s all about hospitality, of course,” said Patrick Watson, who opened Back Label in May 2014. “You don’t have to be Danny Meyer to understand how critical hospitality is to the experience.”
“Hospitality is more than a warm greeting. It’s anticipating how people shop and what information they want. At Back Label, Mr. Watson arranged the display as if following the progression of wines at a dinner party, starting with bubbly and moving through whites to reds, Old World to New World, subdivided by localities. For a more in-depth perspective, he also displays wines by characteristic — those made from grapes grown in limestone soils, say, or wines with lively acidity.”
“Once about speed—sloshed into a paper cup and gulped on the ride to work—quick coffee now signals cheap coffee and not what customers want,” The Wall Street Journal reports. “More coffee shops are betting that a wait of four minutes or more is desirable … Coffee shops are weighing costs and revenues of slower service by evaluating employees behind the counter, longer brew times, and how that effects prices and lines.”
“Consumers in their 20s and 30s who grew up around Starbucks and coffee culture’s bolder flavors are helping drive the slower service, says Spencer Turer, vice president of Coffee Analysts, a coffee consulting firm in Burlington, Vt.” He comments: “That conversation with the barista is a key part of the experience.”
“The extra minutes also provide time for the smell and sounds of coffee which add to how consumers perceive their coffee, says Charles Spence, professor of experimental psychology at the University of Oxford, who also researches consumers’ sensory perceptions for food companies … The complex aroma and flavor of coffee comes from about 40 individual chemical compounds, he says.”
“’The sounds of grinding, dripping, spluttering, those are all meaningful,’ he says, and play a role in how the consumer perceives both the flavor and quality.”
“The Unbound Collection is a curated list of what Hyatt calls ‘stays,’ which for now means boutique hotels that are co-branded with Hyatt,” Fast Company reports. The short list includes Austin’s haunted hobnobbing space, the Driskill, and a restoration of the Hawaiian resort made famous by Elvis Presley, Coco Palms. These hotels will both advertise and operate as themselves, but they’re presented in marketing as ‘by Hyatt.’ The hotels pay a percentage of their revenue to be involved, while Hyatt offers them a customer base, a booking back end, and the sort of purchasing power a business the size of Hyatt can get.”
Maryam Banikarim, CMO at Hyatt: “What you’re seeing is the idea of travel has changed, and people want to explore and develop and have new experiences. On the flipside, they are creatures of habit—human nature wants things that are familiar.”
“For now, the ‘stays’ Hyatt is offering will take the form of boutique hotels … But in the future, the Unbound Collection will be a place where Hyatt can experiment with its own identity in the travel experience. ‘We’re not limiting ourselves just to hotels,’ Banikarim says … So while Hyatt is bullish on expanding outside of conventional hotel stays, it’s not renting out single-family homes just yet. But ‘a river cruise down the Nile?’ Banikarim suggests. That’s a distinct possibility.”