That became clear the first time my wife and I took our then 7-year old to the American Girl store in New York City. The "AG" experience, and its implications for retailers, is beautifully captured in a new Harvard Online post from Kathleen Carr.
As I roamed this pink and lavender wonderland holding the hand of my niece Maggie -- who, it must be noted, was dressed in an outfit that was an exact replica of the one worn by the doll she clutched -- I was amazed. We were greeted by a sales staff dressed like fine hotel concierges who commented, of course, on how fabulous my niece and her doll looked. We had brunch in an overstuffed booth that included booster seats and place settings for both human and doll. Even the bathroom had a holder in each stall where presumably your doll would sit and wait for you as you used the facilities. The store has a doll hospital, a doll photo studio, and a doll hair salon.That's AG spot on. It's about creating an emotional cocoon that engages all the senses, similar to what five-star hotels and Disney World accomplish. And when you do that, customers don't mind much that an AG doll with accompanying book costs about $90. Times that by three when you add in clothing and accessories, lunch or tea, a new doll do, and a photo.
Do You Want To Know A Secret? I had my AG "a-ha!" moment as my daughter was getting her doll's hair brushed at the salon, the stylist chatting up Emma like they were long-time friends. At one point Emma was invited to a back room to have a sneak-peek at a new doll set to debut in a few weeks. Of course, Emma was thrilled; of course, we bought that doll, too.
In the retelling, it sounds like AG has some slick sales people and a slightly deceptive selling practice designed to brainwash your daughter into badgering mom and dad into writing another check. In reality, the experience felt totally authentic, not manipulative. The parents were happily willing to suspend disbelief and enjoy the show.
I'm not sure how AG accomplishes that trick. But it certainly underscored to me why the word authentic has come into business jargon as a marketing keystone. And it suggests to me that retail of the future may not be as much about creating a great selling environment as much as developing an intimate relationship with customers.
Your competitive advantage won't be price, or location, or crack inventory control -- it will be the people you hire to build experiences in an authentic way.
Do you have an American Girl story? What retailers out there grab you like no other?