The Microsoft Store: Enhancing the Digital Experience

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CONFIDENTIAL & ©RetailNet Group, www.retailnetgroup.com Page 1 The Microsoft Store: Enhancing the Digital Experience In an effort to engage more directly with customers, Microsoft’s recently opened retail brand stores allow customers to truly experience the Microsoft brand while also making technology shopping easier and much more enjoyable and exciting. These stores not only display the latest and most attractive technologies, but customers also have the opportunity to directly engage with the interactive technology. Every aspect of the Microsoft Store is designed to facilitate interaction among customers, the technology and the knowledgeable, highly trained employees. With the help of interactive digital media, the goal of the Microsoft Store was to create a truly unique experience where customers can “touch it, play it, and personalize it in an environment that is fun, friendly, and innovative.” Thus, the Microsoft Store is much more than a retail store. It is a Microsoft brand experience. Key Aspects of the Microsoft Store to Consider The Microsoft Store has digital media walls that transform the store from a retail showroom into a brand experience Other forms of in-store media such as the Microsoft Surface and digital kiosks engage customers directly Personalization is a key focus of the store, allowing each customer to customize their Microsoft experience The Microsoft Store has strong connections with the community Media Screens Enhance the Store Experience Microsoft’s main goal when designing their stores was to boost visibility of its brand and products and to create a memorable brand experience. Thus, almost every aspect of the store represents some sort of technology or Microsoft product, including the walls. The Microsoft Store has digital media walls (large LCD screens) that wrap around the entire store.

Transcript of The Microsoft Store: Enhancing the Digital Experience

Page 1: The Microsoft Store: Enhancing the Digital Experience

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The Microsoft Store: Enhancing the Digital Experience In an effort to engage more directly with customers, Microsoft’s recently opened retail brand stores allow customers to truly experience the Microsoft brand while also making technology shopping easier and much more enjoyable and exciting. These stores not only display the latest and most attractive technologies, but customers also have the opportunity to directly engage with the interactive technology. Every aspect of the Microsoft Store is designed to facilitate interaction among customers, the technology and the knowledgeable, highly trained employees. With the help of interactive digital media, the goal of the Microsoft Store was to create a truly unique experience where customers can “touch it, play it, and personalize it in an environment that is fun, friendly, and innovative.” Thus, the Microsoft Store is much more than a retail store. It is a Microsoft brand experience.

Key Aspects of the Microsoft Store to Consider

• The Microsoft Store has digital media walls that transform the store from a retail showroom into a brand experience

• Other forms of in-store media such as the Microsoft Surface and digital kiosks engage customers directly

• Personalization is a key focus of the store, allowing each customer to customize their Microsoft experience

• The Microsoft Store has strong connections with the community

Media Screens Enhance the Store Experience

Microsoft’s main goal when designing their stores was to boost visibility of its brand and products and to create a memorable brand experience. Thus, almost every aspect of the store represents some sort of technology or Microsoft product, including the walls. The Microsoft Store has digital media walls (large LCD screens) that wrap around the entire store.

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Digital Media Screens Wrap Around the Store Bringing the Brand To Life

These bright and engaging screens were designed to spark interest, enhance the store atmosphere, and demonstrate Microsoft products.

The enormous Microsoft media screens display different content such as:

- the latest Microsoft products and user demonstrations

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Digital Media Wall Displays New Microsoft PowerPoint 2010 (above)

Media Wall Demonstrates How to Use Excel 2010 Sparklines

- product and technology service announcements

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Media Wall Reminds Customers of the Microsoft Answer Desk

- seasonal promotions (e.g. Back to School and Holiday merchandising) - images of Microsoft technology within every-day life - scenic landscapes that create an exciting, magical atmosphere within the store

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Media Wall Displays Scenic Ocean (top) and Mountainous (bottom) Landscapes

These digital media screens are constantly changing and are an interesting substitute for typical product signage. Below the digital media walls are all-in-one PCs that demonstrate how the products work.

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PC Demonstrating How to Play a Video Game

While the Microsoft Store walls are quite unique, many customers compare other aspects of the store’s layout to Microsoft’s biggest competitor, Apple Store. The center of the Microsoft Store is filled with Apple Store-style tables where customers can sit and try-out the various Microsoft PCs.

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Large Tables Resemble Microsoft’s rival, Apple Store

Large Presence of In-Store Media

Not only does Microsoft display its latest products and technology, but it also uses it to merchandize other products. One example of this is the Microsoft Surface that is prominently found within the retail store. The Microsoft Surface is a revolutionary product that changes the way people interact with digital media. The large, flat computer resembles a coffee table and has four key capabilities:

- direct interaction - multi-user experience - multi-touch - object recognition

This form of surface computing has multi-touch technology and a direct manipulation interface that allows several people to use the Surface at one time, creating a social aspect. The Microsoft Surface is a major part of the customer retail experience in the Microsoft Store. The Surface is available for customers to assist them in discovering more about games, personalization, and the various custom applications available for PCs.

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Microsoft Surface Has Its Own Seating Area in the Store That Lures Customers to Try It

The New Microsoft Surface Has A Multi-Touch Screen So Multiple Customers Can Use It

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The Microsoft Store also has various touch screen kiosks that allow customers to add products to a virtual shopping cart. Once the customer submits the order, the product is assembled in the back of the store within minutes.

Touch Screen Kiosks Allow Customers to Personalize Their Microsoft Products

In the back of the Microsoft Store, customers will find a gaming zone with a 94-inch screen and plenty of seating and controllers. Here, Microsoft customers can try out the latest games.

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Theater with Seating and Controllers Available for Customers to Play Video Games

Customers can also try out video games at various test stations within the retail store. At these stations, the games are displayed on the digital media walls directly above the products on display.

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Gaming Test Stations Found Throughout the Store

Personalization Enhances the Brand Experience The Microsoft Store stresses the importance of personalization. There are staging areas, equipped with touch screens, throughout the store where customers can personalize Microsoft software and PCs. Not only can customers customize the physical appearance of their Microsoft

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PCs, Xbox consoles, and Zunes, but they can also personalize the products from the inside. For example, once customers purchase a PC, a Microsoft Store employee will arrange a 15 minute training session to help the customers set up their new computers according to their personal preferences. Microsoft’s promise of personalization does not stop at the retail store. On the Microsoft Store website, customers can schedule a personal shopping or a personal training appointment with a Microsoft Store employee. These sessions are customized for the needs of each specific customer. Microsoft customers can also schedule an appointment with a technical advisor online or directly in the store at the Microsoft “Answer Desk”. The Microsoft technical advisors can answer technology-related questions, perform diagnostics, and make on-site repairs.

Screen Displays Service Appointment Schedule

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Customers Can Receive Technology Assistance at the Microsoft Answer Desk

Connecting with the Community

Forming and maintaining strong connections with the community around them is an important part of the Microsoft Store. They welcome opportunities to host community-oriented events such as:

- Private group training sessions - Guest speakers - Concerts - Organization meetings

In addition, they offer daily classes (entry level and advanced) that are free of charge. Microsoft also holds class field trips where they invite students to come and learn about Microsoft technology. No matter what type of event it is, a Microsoft team will develop customized curriculum that meets the needs of any group.

Conclusions & Implications to Retailers and Suppliers The Microsoft Store emphasizes hands-on, interactive experiences and does a very good job of bringing the Microsoft brand to life. Not only do they display and sell the latest and most exciting product assortment, but the technology is also available for customers to use to learn about and to customize other Microsoft products. In addition to bringing the Microsoft brand to life, the retail store also focuses on easing the long and complicated process of shopping and buying technology. The highly trained Microsoft Store employees are available to assist customers with

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product questions, shopping advice, product personalization and can even perform technology repairs without leaving the site. Microsoft’s use of digital media and the latest in technological advances allows customers to fully engage with the Microsoft brand, creating a high-tech brand experience for all customers. Retailers:

• The Microsoft Store is a very good example of how brand stores are becoming more and more experiential. Rather than simply displaying products in a showroom manner like typical retail stores, the Microsoft Store is focused on creating an exciting and interactive environment where customers can truly experience the Microsoft brand.

• Microsoft products are sold in various retail stores, such as Best Buy. These retailers may not feel significant negative implications from the opening of this brand store because Microsoft’s main goal when establishing its retail store was not to significantly increase sales. Instead, the Microsoft Store is much more about each customer’s unique experience within the store.

• The Microsoft Store will, however, have an impact on other brand stores as well as on the future of brand stores. The Microsoft Store is trendy, highly experiential, and customer service oriented. These highly valued characteristics combined with state of the art technology raise the standards for brand stores.

As always we appreciate your comments and feedback. Let us know what you think!

Maggie Gilliam Research Analyst RetailNet Group [email protected]