Build-A-Bear Workshop flourishes by connecting with kids – before, during and after the sale

My eight-year-old twins used to dread being dragged to the mall. For them, shopping was a bore and, other than a quick stop at the food court, the mall held no allure.

Then one day, they got an invitation to a birthday party in the mail. But this didn’t look like just another invitation to just another party. The colorful invite shouted “LET’S CELE-BEAR-ATE!” and asked the kids to meet at the Build-A-Bear Workshop store at the mall. So, on party day, off to the mall we went. Two minutes into the Build-A-Bear Workshop birthday bash, my kids were hooked. This wasn’t just a birthday party, it was an experience.

We were greeted at the store entrance by a friendly “First Impressions Bear,” who explained the concept. During the half-hour stuffed-animal-making process, the kids were immersed in a unique, interactive environment featuring eight different “stations.”

First, we selected a stuffed animal from their collection of about 30 choices; then the kids stuffed it themselves at the store’s larger-than-life stuffing machine. The kids then picked out a little heart, made a wish, and placed the heart inside their new friend before the animal was stitched up. Then came the clothes, hats, shoes and other props to further customize their creation. At each stage of the customization process, a zealous Bear Builder associate helped the kids create their own personalized animal.

Today, our home is filled with over a dozen of these individualized furry friends, and trips to the mall are a welcome diversion. A typical Build-A-Bear Workshop family like ours makes five or more trips to Build-A-Bear Workshop each year. At an average sale of $35 for bears and accessories, it’s no wonder that, in fiscal year 2006, Build-A-Bear Workshop clawed its way to $573 per square foot in annual sales – nearly double the U.S. average for mall stores.

Selling the brand experience

Build-A-Bear Workshop is the brainchild of retail veteran Maxine Clark, and has sold more than 50 million bears at over 300 locations worldwide since she launched the company in 1997. With legions of delighted children spreading the word by mailing out birthday party invitations, or through simple “bear buzz,” Build-A-Bear Workshop now enjoys the kind of customer loyalty usually reserved for the likes of Harley-Davidson and Apple.

“We sell the brand experience,” says Clark, founder and Chief Executive Bear. “That means we sell not only the product, but the fun and unforgettable memories of making your own stuffed animal, which are just as important as the product.”

Much of the company’s explosive growth is the result of young customer evangelists spreading the word. “When guests connect with a brand and feel a real connection to the product or offering, they want to tell their friends about it,” explains Clark. “This viral aspect of our brand is powerful. Our guests have so much fun that they share their stories with their friends and family members, who become future guests.”

Build-A-Bear Workshop is a success because it is a textbook case study in customer evangelism, according to Ben McConnell, co-author of the business books Citizen Marketers and Creating Customer Evangelists. “Maxine Clark has engineered a strong word-of-mouth experience, and she hires very personable employees, many of them former teachers,” he says. “Those employees have weeks of training before ever setting foot on the sales floor. Those two elements combined can generate passionate word of mouth and a sense of believing in the company. People are more loyal to people than brands, and Build-A-Bear Workshop innately understands this.”

The store is a stage

Clark credits much of the word-of-mouth success to simply bringing entertainment back to retailing. When creating the Build-A-Bear Workshop experience, she drew upon her 20 years at a major retailer, as well as upon the advice of an early mentor. As Clark recalls, “Early in my career, a CEO whom I really respected and wanted to emulate said, ‘Retailing is entertainment and the store is a stage. When the customer has fun, they spend more money.’ This has been a guiding principle throughout my retail career.”

During the Internet boom, when some were tolling the death knell for malls, Clark believed that “brick and mortar” retailers just needed an injection of entertainment value. She took a cue from Starbucks, which had taken a commodity and transformed it into an icon and a brand with personality. “Neither Starbucks nor Build-A-Bear Workshop invented the products that we sell,” admits Clark, “but we invented how to sell them better.”

Clark says she was looking to recreate the magic and excitement she felt as a child when visiting certain stores – when going shopping was an event. “The light bulb went off for me when I was shopping with my next door neighbor’s daughter, Katie, who at the time was 10 years old,” Clark recalls. “It was during the height of the beanie animal craze and Katie was frustrated at not being able to find the one she wanted. Katie suggested making them. She meant go down to the basement and start a craft project, but I heard something else. I heard something much bigger.”