March 31, 2009

I can’t quite place when I first met Michael Morrison. It was sometime during 2002 at Monash University in Melbourne, after he’d called and introduced himself as having a keen interest about the impact of music in retail environments. Once I got to know Michael a little more, I realised that “keen interest in music” was a bit of an understatement. It turned out that he was one of the world’s leading experts on “experiential retailing” - creating strategies that appeal to our five key senses (smell, sound, taste, sight and touch) so that we feel a sense of comfort and belonging in a retail space. Michael’s view was that it was vital retailers and other businesses who served customers in a physical space got their heads around the concept, because the world was changing . . . and with it, customer expectations. What struck me about Michael was how selfless he was with his information, delivered with a twinkle in the eye and absolute passion. His enthusiasm for the subject was infectious - and with his academic background it was apparent to me from the start that this was a guy who was a wonderful ambassador for our industry. The observations Michael (and others) have made about the retail environment run along the following lines (this is my interpretation): • Typically, customers now have more money but less time (present short term global crisis aside), while they tend to view features such as price, quality and service as standard requirements - or “givens”. • Almost counter-intuitively though (when considering the “less time” comment), it would appear that the more sophisticated customer is prepared to invest time in satisfying their needs if the conditions are “right”. • For the retailer, “more” means providing the “givens” - such as price, quality and service, integrated or layered with sensory experiences - such as fun, fantasy and theatre. • Retailers who understand this development process will have an advantage in the market, because Michael’s research shows that consumers will pay a premium for the experience, as well as become attracted to the brand. It’s critical they get the formula right. How do we know this? Well, because people like Michael Morrison have spent a lot of time observing and researching this topic. To quote Michael from a recent study involving a high profile fashion brand, (aimed at determining the impact of aroma): “We controlled the environment with music and aroma in the store on the same day of the week, at the same time of the day, for six weeks. We conducted exit interviews to determine things like stay time, actual purchases, purchase intent and the perception of the experience. ”The key results of the research were that loud music plus vanilla aroma was the most powerful mix in that space for that clientele. “Both music and aroma trigger very powerful emotions linked to memory, and research shows that the right combination can change people’s behaviour”. The significance of this plays out on a number of strategic levels. Firstly, there is the importance of appreciating that people are most receptive when operating on all five senses. Consequently, for the retailer, it is worth investing in a process that determines the type of environment they should be creating in order to make their brand and product most desirable. On another level, though, if we accept this, we need to change our habit (and it is just a habit) of relying too much on media driven messages - messages which typically tend to appeal only to one or two senses. By introducing environments that appeal to all senses, it is also more likely that the customer will be engaged not just on a rational level, but on an emotional one as well. In this multi-sensory (experiential) environment, the customer is more likely to be influenced by emotional impulses (as opposed to logical or rational ones), which they implicitly trust. The result? Customers (i) enjoy the experience (ii) are more likely buy the product and (iii) will become ambassadors for the brand. Not a bad result at all . . . Despite him reminding me every time we met that I was yet to “get along” to one of his presentations (I had been told what a wonderful presenter he was) it seemed something always came up to prevent me from doing so. (I just assumed it would happen eventually, as Michael’s passion presented him as a man perpetually in the prime of his life . . . ) I regret that now. When told that Michael had passed away in his sleep during a study tour recently, I stopped, and thought, and realised just how much his passion must have touched everyone he came into contact with. He will be sorely missed. Do yourself a favour and spend a little time reading some of his articles. Google “Michael Morrison, Experiential Retailing” . . . and keep in mind that his principles apply to all types of environments . . . factories, offices, cafes, a function, venues, retail . . . temporary and permanent . . . in fact, wherever people congregate. Everything can be a great experience. And if you agree with him, become an ambassador for his ideas. He’d have liked that . . .
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• In general terms, the development of customer satisfaction has been one of moving on from satisfying the basic need for products and services to that of wanting to consume items such as leisure, fun, fantasy, entertainment and theatre. However, we have now entered an age where customers are demanding even more.
A retailer or service provider can’t just throw together some random set of experiences, however, in order to create an experiential (or sensory) landscape which works.
Michael Morrison understood all of this. In addition to his teaching and research, he was forever conducting study tours and presentations on the subject, pointing out those brands and environments which most effectively executed the strategy.
Wayne Hall
Director
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