Experience-based and engagement-driven approach to retail, co-creation is likely to shape the future of bricks.

Lots of retail businesses today are in need of a new sales approach. Retailers are facing grim times as the price becomes the key differentiation factor. After all, competing on price alone is not a particularly good market strategy. Creating an experience and ensuring customer’s engagement can generate additional value for consumers. By enabling the customer to actively contribute to the outcome, be it a transaction or experience, retailers can effectively boost in-store traffic.

Co-creation equals engagement

Co-creation applies anywhere that a retailer or brand offers a certain service, either related to the product itself or related to the brand or the lifestyle the brand is associated with. In the case of passive participation, co-creation boils down to configuring a product from a predetermined set of choices. Nike’s customized shoes are a good example of that kind of co-creation. When it comes to a brand or lifestyle, passive participation translates into event attendance, the event being a lecture organized by a retailer for instance. Which one is better? That depends on individual circumstances. Active participation is probably harder to achieve as it requires more resources, while event participation necessitates more dedication to engaging with customers.

Turning customers into loyal partners

At the end of the day, selling products is not enough to stay in business for long. Clicks can easily beat bricks in terms of sales figures, but traditional stores are not entirely out of the game. Retailers can still create value for clients as long as they focus on making the store visit truly engaging. Co-creation is one way of doing it. By offering shoppers the opportunity of active participation, retailers can make that store visit an unforgettable experience that will leave visitors wanting more. Building a loyal customer base suddenly becomes much easier.

Source: http://www.forbes.com