How Experiential Businesses Are Striking a Balance Between Virtual and Actual
In-person events are on the rise again--which means businesses that made pandemic-era pivots have to figure out how to keep customers interested both online and off.
An in-person event at Lanterne Candle Lab's candle-making studio in New York City. Photo: Shawn Lam
The world is suffering from virtual fatigue.
"During the pandemic, a lot of group activities moved online," says Mike Graziano, director of the transaction advisory practice at the management consulting company RSM. Now, after nearly three years of social isolation, in-person events and activities are barreling back. And that creates a challenge.
Spending on services such as travel, dining, and events has been steadily rising since January 2021, according to a July report from RSM. That's good news for experiential businesses that had to make quick pivots to online-only operations during the pandemic. Changing customer demand, rising material costs, and remaining threats of Covid-19 surges have forced experiential businesses to strike a balance between in-person offerings and more accessible virtual alternatives. Here's how three craft-focused companies have found new ways to simultaneously attract customers in person and online.
Lean into corporate events
During the pandemic, the New York City-based fragrance-making studio Olfactory stopped offering its in-person candle-making experience for safety reasons, and began selling a $85-per-person virtual version: Customers received sample scent kits and an invitation to experience a Zoom session with a perfumer, who guided them through the process of making their own custom blend. After the session, the company mailed a finished, full-size candle to customers. Founder Joseph Vittoria, 32, says that this online service helped the business sustain its temporary closure, but he noticed sales dwindling near the end of 2020 as people returned to in-person events.
A fragrance mixing event at Olfactory. Courtesy company
That led Vittoria to shift back to in-person events, targeting a growing market: corporate customers. "We've seen more companies coming to us because they simply need an excuse to get together and meet with each other in person for the first time," he says. These team-bonding events helped Olfactory's sales grow by 300 percent in 2021. The company declined to reveal annual revenue.
Still, Olfactory's shift into online showed Vittoria that the brand has customer bases outside of New York, including a considerable audience in Canada. That led the company to continue its virtual arm even while shifting back to in-person. "For consumers who want to take time thinking about which fragrance they are going for, our virtual operation allows them [time] to explore and enjoy this intimate journey," says Vittoria.
Support your community
After a rise in anti-Asian attacks during the pandemic, Tisya Siswanto, 32, opened Lanterne Candle Lab, a candle-making studio in Manhattan's Chinatown, with a goal of helping drive local business in the neighborhood. Launched in August 2021, Lanterne Candle Lab offers hourlong, in-person candle-making lessons at $50; while customers wait for their candles to cool so they can safely transport them home, Siswanto encourages them to explore other businesses around the neighborhood.
Rising costs of raw materials used for candle making and supply chain delays have presented challenges to the nascent business, but strategic partnerships have helped Siswanto drive sales: During the Mid-Autumn Festival, a traditional Chinese celebration of the harvest that falls in September, Lanterne Candle Lab partnered with the local jewelry brand Sublima to host a community party where consumers enjoyed traditional Chinese mooncakes and Asian craft hard seltzer while shopping. About 10 percent of sales from the event--which also helped drive new customers to the studio--were donated to Manhattan Chinatown's community organizations Welcome to Chinatown and Think!Chinatown. The company's revenue grew 500 percent in 2021, and revenue reached more than $100,000 in 2022.
Still, operating fully in person remains challenging, and Siswanto says that she has to adjust her budget constantly to adapt to the changing economy. To help bolster her startup, Siswanto plans to roll out virtual candle-making lessons in 2023, which she says will help more people enjoy the unique experience.
Create a seamless offline translation
Cricket's Candy Creations has a pop-up candy-making studio in New York City. Courtesy company
Cricket Azima, founder of Cricket's Candy Creations, launched her candy-making pop-up in New York City in November 2021. She wanted to provide children with an engaging, in-person educational outlet. And she did: Cricket's Candy Creations has seen a surge in demand and Azima hopes to make it a permanent storefront in 2023.
Flexibility has been key to growing her business amid economic hardship and changing Covid-19 protocols, especially while working with children. Although the business has remained strong, Azima sees an expansion into the e-commerce space as an opportunity to diversify revenue. Cricket's Candy Creations recently launched candy craft kits that are sold nationwide. Azima hopes that the $39.99 kits will help boost demand for in-person events by introducing children and parents to the brand and to candy making as an engaging activity.
This article, written by Xintian Tina Wang, appeared first on Inc.
