It's All in Store

Retail has been coping with all kinds of things lately – the economy, a changing culture, a new generation of consumers and a headache full of new technology.

As retail adjusts, the store designers I interviewed for my article on the design firm business (“Solving the World’s Problems,” page 44 of the May issue) talked about how they’re also being forced to cope. More than one mentioned the new kinds of non-traditional retail – such as medical and financial services – that are applying traditional retail approaches to their businesses.

Brian Shafley, president of Chute Gerdeman (Columbus, Ohio), talked about the work his firm has done for American Family Insurance. They created what they called “The DreamBank” in the company’s Madison, Wis., hometown as a place for consumers to immerse themselves in the values of insurance without necessarily buying anything. (See “American Dream” on page 28 of VMSD’s March 2013 issue.)

“Every insurance company tries to make tangible what is essentially an intangible product,” Shafley told me. “Most insurance companies try to package their product. People want to feel they’re actually getting something. With insurance, you’re buying emotion, peace of mind – a vapor. That’s why some of the funniest TV commercials are for insurance. Your product’s unexciting, so you have to find something else to get people’s attention.”

Shafley mentioned the GEICO commercials, but I was thinking of the ones for Progressive Insurance, which invite you to compare all your various premiums so you can make the smartest purchase.

They’ve created a quirky character named Flo and put her – where?? – in a store! A store with shelves, boxes of products, signage, counters, graphics, aisles and a cashwrap. Clearly, the thinking was that if you want to make an intangible purchase tangible, put it in a retail setting. That’s what consumers identify with. Not a laptop. Not an iPhone. Not a shopping app. A real, physical store.

Similarly, Michael Bodziner of Gensler told me about a project for another insurer, Blue Shield of California, that involves a service clinic inside a grocery store. Shoppers can walk in for a quick blood pressure reading or diabetes test. Okay, not all that unusual. But in this case, says Bodziner, a Blue Shield consultant will walk the supermarket with you, pointing out where the healthy choices are and how to read nutrition and ingredient labels.

You can’t get that from Amazon.