At the recent Retail Marketing Conference sponsored by the Retail Council of Canada, Watt International’s Managing Partner, Vince Guzzi, shared groundbreaking insights that highlighted the importance of focusing more on the customer-centric 4E’s of marketing – Experience, Exchange, Evangelism, Every place. Vince revealed how this strategic shift can empower brands to build enduring relationships with their customers that foster deeper connections and loyalty. These insights, along with other key takeaways from the conference, highlight essential strategies for retailers to stay competitive.

Key Takeaways

ROX is the New ROI

Watt’s proprietary Pleasure Index model measures how customer delight drives customer loyalty. Four key factors to consider are:

• Discovery: Consumers have an insatiable desire to discover, treasure hunt, learn, interact, and be inspired. These contribute to building a positive perception around value.
• Quality: Striving for quality and excellence is top on the consumers’ agenda, especially for Gen Z. Showcasing and communicating the product’s integrity in terms of its craftsmanship, authenticity, and any supporting guarantee or certification become important in delivering quality. The service interaction and the quality of the interface at each touchpoint along the customer journey also matter.
• Choice: In addition to having easy access to a wide range of products, curation is highly valued as it shows customers that you understand their needs. Value-added offers and unique products that are tied to your brand round out their perception of choice.
• Cause: The idea of “local”, through local sourcing, partnerships and even supporting local communities globally, ranks highest. Community engagement and extending support in helping communities through charitable initiatives and events significantly enhances value perception. Sustainability remains important so long as consumers do not have to pay a premium for it.

Price vs. Value

• Affordability Focus: Consumers are highly sensitive to pricing, with promotions and sales becoming key drivers. Example – IKEA invested $80M in price reductions and emphasized “meaningful affordability” with campaigns like the “Start the Car” and “Second Hand Tax” ads. Consumers are also focusing on maximizing value through price checking and e-coupon stacking.
• Value Perception: Retailers can amplify the perception of value without lowering prices by creating relevance to the customer through making different product quantities or sizes available, making the shopping experience and buying process easy and efficient, making it easy to access product information. These all hold intrinsic value to customers.
• Gen Z: A values-driven segment, with sustainability and purpose-led brands becoming more attractive.

Store Experience

• Associate Engagement: Store employees play an increasingly vital role in shaping the brand experience. IKEA exemplifies this by involving associates in brand communications from the store level to the boardroom. Leaders from companies like Best Buy work in stores to gain direct insight into customer and employee experiences.
• Small Format Stores: Large retailers like IKEA are adopting smaller, urban store formats to offer a curated experience, showcase expertise, and offer value-add services for high-touch services such as kitchen planning.
• Multihyphenate Stores: Enhanced experiences where shoppers can benefit from the partnering core and non-core offers like Aritzia and A-OK Cafe are examples of how retailers are thinking differently about how they go-to-market.

Personalization & Omnichannel Marketing

• “Amazonification”: With 50% of customers beginning their shopping journey online, customers often first learn about products on Amazon. Factoring this into multi-channel planning on how to effectively move customers along the shopping journey is essential. Retailers should utilize videos, influencers, and other engaging content to capture attention and maintain engagement.
• AI & Data: Data is king, and brands are increasingly leveraging advanced analytics and AI to offer personalized recommendations and predict customer preferences, increasing engagement across social, digital, and physical retail channels.

Multicultural Marketing

• Cultural Sensitivity: Understanding the diverse backgrounds of multicultural consumers is key as there are subtle but significant differences that, if cued properly, can improve engagement and brand adoption. Marketing should consider immigrants’ connection to both their home country and their current country of residence to understand what cultural aspects they carry forward.
• Community Engagement: Multicultural consumers rely heavily on community ties, making field marketing important to get at some real insights and enhance understanding of what resonates with these audiences.
• Acculturation Levels: Different generations of immigrants bring varying expectations, requiring nuanced approaches to segmentation.

Future Strategy (FATE)

Successful companies are focused on:

• F: Fanatical purpose around delivering to customer needs.
• A: Animate this purpose across all customer experiences.
• T: Technological enablement to bring the experience to life.
• E: Embedding this purpose within the organization’s culture and operations.

As Vince highlighted, the transition from the 4P’s to the 4E’s is no longer optional—it is essential for brands to succeed in today’s fast-paced, consumer-driven world. By focusing on creating meaningful Experiences, fostering genuine Exchange, promoting Evangelism, and ensuring their presence is felt Every place, brands can build deeper, more lasting connections with their customers. These key insights, from value perception to omnichannel strategies and multicultural marketing, demonstrate the importance of staying agile and customer-focused in the ever-changing retail environment. By implementing these strategies, retailers can position themselves for long-term success in an increasingly competitive market.

For more information on Watt International’s proprietary Pleasure Index model, please email contactus@wattisretail.com.