Would You like a feature Interview?
All Interviews are 100% FREE of Charge
The opinions expressed by entrepreneurial contributors are their own.
Thanks to several innovative practices such as stocking iconic toy brands, utilizing celebrities in promotional events, negotiating lucrative contracts with various toy manufacturers, and developing Jeffrey the Giraffe, Toys R Us It used to be a common name. It has been the face of the brand’s advertising campaigns for decades.
Despite all this, the company struggled to keep up with the ever-changing tide of consumer expectations and the rise of e-commerce platforms. By 2017, the company filed for bankruptcy. So, what lessons can we learn from the disappearance of a once-beloved brand from the spotlight as we approach his fifth anniversary in June?
The answer is a lesson in building strong, modern and agile brands. Here are his three ways that Toys R Us not only survived, but managed to maintain its iconic status to this day.
Related: 5 strategies you need to build your brand
1. Encourage people to experience and connect with your brand
The average Toys R Us store size was about 30,000 square feet. The company has used the space to shelve the latest and greatest toys and activities for kids. In fact, the company often has excess inventory,Providing Critical InventoryBetween Thanksgiving and Christmas to attract last-minute shoppers.
This type of “big box” structure and approach made the company a storefront rather than a destination. To create a true brand experience, he created 10,000-15,000 square feet of space in each store, making it his one stop shop for birthday parties. Amenities included a bounce house, trampoline zone, learning station, arcade, and more.
In this way, the store would have become a destination for customers. Creating destinations for the brand, rather than places to “run across,” would have provided an experience for Toys “R” Us customers. Salesforce survey found 80% of its customers We believe that the experience companies provide is as important as the products they sell.
Additionally, the company could build a kitchen to serve food and sell drinks for birthday parties, resulting in more revenue. When parents book parties, one of the favorable requirements was to fill out a birthday register for merchandise sold at the retail store. This all-in-one business model would have separated the brand from its competitors.
RELATED: 4 things that lead to unforgettable customer experiences
2. Understand customer pain points
The changing retail environment and increasing competition are some of the many reasons Toys R Us closed. But I would argue that Toys “R” Us ultimately failed because management didn’t understand their customers’ changing needs.
As a toy destination, the company overlooked the pain points facing its primary target audience, parents. For example, consider a birthday party.a A recent study found that 55% of parents We are stressed by the amount of time it takes to plan a birthday party and how to keep it affordable.Basically, today’s consumers prioritize convenience. By offering a seamless one-stop-shop, party and gift program, the iconic retailer could have captured the attention of busy parents by expanding benefits that save time, money and energy. .
Creating a robust online gift registration system that allows parents to create, track and purchase gifts from the store also eliminates a major pain point for parents. Then you can save time and energy for busy parents by wrapping gifts and placing them at the birthday party when guests arrive.
Providing convenience and peace of mind is key to customer retention.In fact our 2023 Subscription Commerce Industry Outlook Report Preview Here are the top three ways to retain customers:
Related: How to identify pain points that determine what customers buy
3. Nurture the community
By creating the infrastructure necessary to make the store a destination, Toys “R” Us could have ultimately created a true community experience for both children and parents. On non-party days, monthly memberships allow for regular attendance at the space, exclusive access to the playground, and discounted dining rates.
Ultimately, building a repeater base of satisfied, long-term customers is essential to growing your business within a recurring revenue and membership model.In fact, according to research, it produces the best subscriptions 20% or more of revenue From existing subscribers.
The most successful brands will find ways to foster engaged communities that feel a personal connection and brand affinity. As Expert DOJO’s Brian Mac Mahon says, “If you’re going to build a company, it has to be the vision that makes people stop and that lasts forever.”
We hope Toys R Us’ sister company, Babies “R” Us, will take these lessons seriously as they attempt a comeback next year. Entrepreneurs should be brands with deep loyalty and community involvement, not building businesses. As consumer habits continue to evolve, brands that build exclusive experiences for well-researched customer audiences will stay ahead of the competition.