How to Engage the Polarized Customer

Double Down on One Thing

They say it is always the middle that disappears first.

As consumers shift their spending priorities both up and down, brands are increasingly focusing on one area in particular to engage them.

On the face of it, US off-price retailer Ross Stores gets a lot of things wrong. Online reviews of its stores talk of poor service, damaged products, and general untidiness. At the same time, these customers rave about the brand because of the bargains that they discover.

For brands like Ross Stores, price is everything to its customers and these shoppers are willing to accept trade-offs in exchange for lower prices.

Meanwhile, multiple brands have invested in more luxurious experiences that encourage customers to spend time with them. This includes Ralph Lauren, Nike and Hyundai who have all opened physical spaces that are only available to members, by appointment, or by invitation.

For these brands, the focus is on creating experiences and services that consumers aspire to access.

At both ends of the spectrum, retailers are finding success by doubling down on what they do well to engage with customers. They’re not trying to reach everyone but are concentrating on the customers whose priorities best align with their brand offering.

Mix Luxury and Mainstream

At the same time, some brands are engaging polarized consumers by blurring the lines between luxury and mainstream. They recognize that consumers looking to save money may not want to let go of higher-end services. Likewise, those who aren’t everyday luxury shoppers can still be encouraged to spend a bit more in exchange for the kudos of a connection to luxury brands.

Hema, the Chinese grocery brand, offers customers a multitude of different ways to buy and enjoy food. The stores cater for traditional grocery shopping, but visitors can also order food to cook at home, order food from Hema’s chef for delivery in 30 minutes, have food cooked in-store to take home, buy food in-store and have it delivered, or buy in-store and eat it in the dining area.

Amazon’s grocery chain Whole Foods also offers a higher level of service in the form of special diet store tours that help customers discover products that meet their dietary needs. The tours are customized to the attendees needs and include refreshments and free samples.

Enhanced services and high levels of personalization are typically associated with a higher cost which makes shopping with these brands feel more premium. They are tapping into the feeling that luxury brands give but in an affordable way.

Meanwhile, luxury brands have a long history of collaborating with unusual and mainstream brands. Nike and Tiffany’s recent sneaker collaboration is just the latest example.

These collaborations typically allow consumers to dip their toe into owning a luxury brand without the superhigh price tag. They can act as an introduction to a particular luxury brand, which may then convince the customer to invest in other items in the future.

Don’t Ignore the Store

Physical retail is a powerful weapon in your arsenal when it comes to engaging a polarized audience.

This is because the retail store is both accessible and a sign of prestige. It is physically impossible for every brand to have a store because there are only a certain number of stores on high streets, in shopping centers and retail parks. What’s more, not every brand can afford the costs associated with operating a store.

Anything with a limited supply carries a certain status. It’s why every major luxury brand has at least one physical store. These spaces add to the brand’s value.

At the same time, physical retail spaces are always close to where customers are. A large part of the lower-cost retailer model is accessibility which is why these brands.

often operate large chains of stores. They want as many people as possible to be able to see their brand and shop with them.

There is no doubt that a huge part of Ross Stores’ success is its physical stores. With product constantly changing, customers keep returning to the store in the hope of discovering a gem. The company also deliberately doesn’t sell online where it would be hard to replicate the discovery experience customers love about its stores.

Meanwhile, Chanel is in the process of building ultra-VIP stores for its customers in Asia. Only the brand’s most important customers will get an invitation to these private spaces. The in-person nature of the physical store is a vital part of this elevated offering.

Ross Stores and Chanel may be very different businesses but they both have a deep understanding of their customer and what matters to them. A physical space is the perfect way to demonstrate those values to consumers and engage them – whichever end of the spectrum they sit on.

Do you feel like your business is slipping into the middle between polarized consumers? Get clarity on what to do next.