We’ve written a report ‘Unlocking the Connected Home Market at Retail’ born from frustrations that our consumer electronics clients have been experiencing. The report builds on the momentum of the uptake of connected home products and asks why brands and retailers are still struggling to engage effectively and educate a broader audience at retail.
To understand the reasons behind the communications challenges at retail, we put our strategy heads together to create a customer value proposition model for connected home products. This model helps to draw out potentially latent needs and wants that a customer might not be acutely aware of. It also contributes to uncovering relevance (consumer benefit) over functionality (features).
Ironically, one consumer electronics retailer has pinned down a working formula, and gone on to become the leading US retailer ranked by average sales per square foot – the holy grail of retail productivity. This consumer electronics retailer is, of course, Apple (no surprise there). But what is interesting is how they came up with the ‘Genius Bar’ concept, it’s a great story.
When Apple set about designing their retail space, rather than look to direct consumer electronics competitors, they questioned what was needed to create an environment in which people just wanted to ‘hang out.’ Hotels appeared to have exactly that environment. So Apple sent their staff on the Ritz-Carlton training program to understand what people love about hotels. Their insight was that people like the concierge, where help is at hand to answer any issues. The challenge was how to create the equivalent model in a retail space, and the solution was the Genius Bar.
For more information about the value proposition model and other key takeaways for successfully retailing consumer electronics in the connected marketplace, please find below the full document in a SlideShare entitled ‘Unlocking the Connected Home Market at Retail.’
If you would like to know more, please contact us to discuss your next retail design project.
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