In recent news this year, you might have noticed that Macy’s, the ever popular retail store, is closing its doors at 100 of its locations – this as a result of sales figures dwindling! 100 stores make up 15% of Macy’s outlets, which has come as a shock to many. According to the New York Times and USA Today, the cause for Macy’s dwindling sales in recent months, is a direct result of online sales and new alternatives (aka the competition). While the closing of these stores might be seen quite negatively by the general public and even some marketers, we find it rather strategic: it’s all part of Macy’s new marketing strategy to make the shopping experience better and more rewarding for the customer (and for Macy’s too).
When Macy’s announced the closing of so many of their stores, it was announced as part of a series of strategic changes the company plans to make. These changes are aimed at providing a better foundation for more sustainable development and profit growth for the business as a whole and we love their new marketing strategy. First and foremost, the chain of retail stores plan to host a variety of in-store events. Experiential marketing is a great way to drive customers to the store, get them sampling products and earning their loyalty and respect. The company also aims to up their game in terms of online shopping by improving on their online search and ordering systems.
What went wrong? It’s hard to tell really why Macy’s experienced such a drop in sales, other than the obvious. Customers just weren’t / aren’t receiving what they want and their marketing strategy was not finite enough. Perhaps Macy’s has been spreading itself too thin and now needs to spend some time adding value to a customer’s experience instead of mainly focusing on expansion and profits.
What is Experiential Marketing?
Experiential marketing is also often referred to as “participation marketing” or “engagement marketing”. It is a type of specialized marketing strategy designed to encourage consumers to participate in the evolution of a brand or product. In other words, an event or in-store promotion is set up where customers can experience the brand or product changes and provide their opinion or advice on it. It is a highly successful form of marketing and has helped many companies see their sales figures and customer engagement levels soar.
Engage with Your Customers & Boost Sales
It’s important to realize the value of truly engaging with the customer. Companies that fail to pay attention to their customer and the type of shopping experience that they have can very suddenly fall from grace. If you feel that your business isn’t making the type of sales that it should, perhaps it’s time to change things up and offer your customers a better shopping experience.