The ability to access a company's goods or services conveniently and at low cost is a value-added brand benefit. Despite the growth of online shopping, retail locations continue to provide many different types of customer value.
The ability to access a company's goods or services conveniently and at low cost is a value-added brand benefit for its current and potential customers. A core value-added benefit of many retail brands such as Home Depot, Walmart, Gap, Lululemon, Target, and McDonald's is their wide network of locations that are easily accessible. For example, customers of Walmart can shop at more than 10,000 stores worldwide while McDonald's serves customers at more than 40,000 restaurants worldwide.
Beyond providing access, retail locations contribute to customer value in many ways:
Brand Equity
Retail locations provide unique experiences to customers to experience a brand's emotional benefits that go beyond the product itself. The experience of shopping for and purchasing the right Rolex watch or Tiffany ring at the store provides a unique experience. At the opposite end, Walmart stores provide value through a large assortment of brands under the same roof.
Developing and Maintaining Customer Relationships
Retail locations enable brands to strengthen their relationship with customers through a variety of mechanisms. Customers interact with sales members and service employees to learn about, shop for, and buy products and services. At Home Depot, creating and maintaining strong customer relationships by helping them is critical for success.
Service Quality
Retail locations are a physical manifestation of the brand where customers can experience intangible benefits like service—browsing and shopping, trying out different sizes, returning and exchanging products, and more.
Product Offerings
Despite the growth of online shopping, the vast majority (over 70%) of most brands' sales come from physical locations. For experiential categories such as perfumes, clothes, jewelry, and daily consumables—physical stores remain the distribution channel of choice for most customers.
Conclusion
Despite the growth of online shopping, retail stores continue to provide many different types of customer value. Rather than discounting retail locations as obsolete, smart companies optimize the mix of retail and online interaction with their customers.