Carpenter to focus on Interbrand North America

Retailers looking for great examples of wirelessly connecting with their shoppers have three great brands to look to: American Eagle Outfitters, Netflix and Amazon.com. The continue to differentiate their shopping experiences with intimacy, responsiveness and relevance.

Even with millions of items for sale, Amazon connects intimately with customers, from its one-click ordering to its ability to become more relevant with each visit. The result is a “barrier to exit” that other brands envy.

American Eagle excels at aggressively integrating multi-channel marketing tactics into both its traditional and digital campaigns. It connects at all the right touchpoints, which goes a long way towards achieving brand loyalty. This year, AE included a mobile filed in its loyalty program, and used mobile as a point of entry into sweepstakes as well as an alerts program. Calls to action were posted on social networking sites, such as Facebook and Twitter in the form of banner ads, status updates and tweets.

While we can all agree that price matters more to the consumer than ever, it’s not the be-all, end-all of shopping. At some point, the hunt for best price has to stop. And why it stops is up to the retail brand.

Shoppers attach to brand, not price. Brand—the distinct way you do business—needs to provide a reason to activate the purchase, a reason beyond price. It can be trust, convenience, fun, effortlessness, time savings, fashion or many other factors a brand makes itself known for.

Many retailers have learned the hard way that price-based competition is simply not sustainable. To survive, they need a balanced value proposition unique to the brand that makes the shopper confident she has found the right choice among similar offerings of the product or solution she seeks.

This year, retailers have made headway in the battle against “sameness” by negotiating exclusive famous name brands, making sure their private labels stand for something besides “cheaper” and by infusing the shopping experience with emotional appeal. One brand that renewed its value-plus-reason image is Old Navy. After veering off into fast fashion inspired by the designer runway, it has returned to bright basic family apparel surrounded and supported by its kitschy sense of humor. Shoppers are returning to the store and business is on the upswing.

Copying the latest “hot” retailer is an easy way to stay current, to level the playing field. But imitation doesn’t keep you at the top of the shopper’s mind. When a retail brand displays a unique, creative energy—the J. Crew Liquor Store comes to mind—I get a dose of inspiration like an electric charge. I’m not just browsing now, I’m fully engaged because a particular creative spirit permeates every touchpoint for an unmistakable experience. That’s when the brand stops chasing and starts engaging. Maybe it’s my emotions, my ego, or my sense of fun which is always looking to come out and play.

Businesses in search of competitive advantage are much more comfortable asking design consultants for “innovation” when they should be asking for “creativity,” the birthplace of new ideas. But creativity, with its faint air of mystery and associations with renegade, non-corporate types, doesn’t seem at home in the world of commerce, where goals are achieved through “procedure” and “knowledge.”

Interbrand Design Forum has seen an increase in the number of retail brands deciding to bring creativity to the table, but a negative tendency to have their procurement officers treat it like a commodity—buying it by the pound. That’s a mistake. Few agencies know how to bring about the environment, the chemistry and the provocation that net the great, disruptive ideas that are actionable in terms of the brand experience. The kind that can move your business to a new place.

Should retail brands be concerned about their brand strategy or should they simply concentrate on sales per square foot? Are we on the verge of a new spirit of innovation in retail to serve “pent-up” demand? How can the virtual environment of digital retail create communities outside the four walls of the store?