Kroll: Entertainment, service grab customers

Manufacturers and retailers can increase profits by boosting their entertainment and enticement values, said Teresa Kroll, chief marketing bear for Build-A-Bear Workshop.

Kroll discussed how the retailer uses a hands-on approach and plenty of customer service to get parents and children into their stores and keep them coming back during the sixth annual Kids Today conference in June.

The global retailer has franchise stores in Europe, Asia and Australia in addition to its more than 200 U.S. stores all offering children and adults the chance to make their own stuffed animals from scratch.

Consumers customize their purchase by choosing everything from the type of animal, outfit and recorded message to accessories and a name. A basic package is $10, but the average sale is $32 because of the extras like shirts, pants, shoes and other accessories.

Kroll encouraged retailers to find their own ways of bringing entertainment to their customers saying often listening to guests' feedback has led to great ideas for BABW. For example, when kids asked BABW about hosting concerts of their favorite teen bands like Click Five, the company researched the idea and made it happen. It hired the band to perform at the opening of a storefront at the Mall of America in Bloomington, Minn., and it turned out to be the highest-attended concert in the mall's history. Now the company tries to hold a concert for every store launch.

BABW also offers brands kids love and recognize like Disney, Spiderman/Marvel Comics, Hello Kitty, Winnie the Pooh, Sesame Street, Sketchers and sports leagues like the NFL, NBA, WNBA and Major League Baseball. The company partners with other well-known brands like Macy's Parade, Beaches, Lego, Clikits, McDonald's, Hilton, Sheraton, Radio Disney, JC Penney, National Geographic Kids and Mastercard to further extend its market reach.

Kids connect with this brand so much that last year when Kroll and her team decided to change their advertising campaign and shoot unscripted segments of kids talking about their visits, more than 500 kids showed up wanting to tell their stories. The film crew taped enough comments to make 14 candid commercials, which were a big hit with the company and the viewing audience. Now Kroll wants to do a similar filming featuring teenagers and moms.

This word-of-mouth or marketing has been a big reason the company has grown so rapidly in nine years. Another reason is its involvement with charities kids care about and the company's ability to create social awareness.

BABW has partnered with organizations like the World Wildlife Fund and when a child chooses an animal from that collection, $1 is donated to the charity. Each May the company hosts Stuffed with Hugs day during which anyone can go to any BABW and stuff a bear for free that's then donated to a charity. Kroll said the charitable events not only draw crowds but they're also some of the biggest sale days.

Teresa Kroll