Retailing in a Global Marketplace:Creating a Customer Experience

Anne L. Roggeveen

Charles Clarke Reynolds Professor of Retailing & Marketing, Babson College, Babson Park, Massachusetts, USA

Honorary Visiting Professor of Retailing & Marketing at Center for Retailing Stockholm School of Economics, Stockholm Sweden

Guest Professor of Business, University of International Business and Economics, Beijing, China

Extramural Fellow, Maastricht University, Maastricht, Netherlands      

Joint Editor‐in‐ChiefJournal of Retailing

Academic CouncilAmerican Marketing Association

The World is Changing

Boundaryless Retail

Boundaryless Retail

Retail Apocalypse vs. Retail Renaissance

Customer Experience

Frictionless & Enjoyable

Customer Experience

Match consumer’s values & world views

Customer Journey & Touchpoints

Lemon, Katherine and Peter Verhoef (2016) “Understanding Customer Experience Throughout the Customer Journey”, Journal of Marketing

Creating a Pre-purchase Experience

Creating a Purchase Experience

Creating a Post-purchase Experience

Using Sensory Elements to Create a Customer Experience

Vision Audition

TouchTaste

Olfaction

Spence, Charles, Nancy M. Puccinelli, Dhruv Grewal and Anne L. Roggeveen (2014), “Store Atmospherics: A Multisensory Perspective,” Psychology & Marketing, 31 (July), 472–488.

1. Path

2. Landmark

3. Edge

4. Node

5. District

5 Elements of Retailscape(PLEND)

Roggeveen, Anne L., Dhruv Grewal, and Jens Nordfalt, “Five Elements of Storescape – A PLEND Framework”

PATH• The perceptual element most obvious to the shopper• Affects where the shopper is moving• Affects how far into the shop the shopper goes

1. Path

Think about the Path

Smart Carts

Website Path

LANDMARKS• Easy to identify or recognize• Used for navigation• Visible location• Contrast from the background

2. Landmark

Landmarks

Landmarks

Landmarks

EDGES• Affects where the shopper looks (hot spots)• Affects the speed of the shopper

3. Edge

HOT SPOTS

Navigation Inspiration Sales

HOT SPOTS

HOT SPOTS

Roggeveen, Anne L., Jens Nordfält and Dhruv Grewal (2016), “Do Digital DisplayEnhance Sales? Role of Retail Format and Message Content, Journal of Retailing, 92 (March), 122-131.

HOT SPOTS

NODESTechnology Infusion

4. Node

Conceptual Model of Technology Infusion

Grewal, Dhruv, Stephanie Noble, Anne Roggeveen, and Jens Nordfalt, “Tech Infusion: How In‐Store Technologies Influence Sales through Social Presence and Identity Expression”

Kiosk with Digital Screen

Smart Displays

Augmented Reality

Sephora Virtual Artist

Robots

Chatbots

Voice Assistants

Technology Infusion

Grewal, Dhruv, Stephanie Noble, Anne Roggeveen, and Jens Nordfalt, “Tech Infusion: How In‐Store Technologies Influence Sales through Social Presence and Identity Expression”

Inventory Robot

Technology Infusion

Grewal, Dhruv, Stephanie Noble, Anne Roggeveen, and Jens Nordfalt, “Tech Infusion: How In‐Store Technologies Influence Sales through Social Presence and Identity Expression”

Grab & Go Solutions

Grab & Go Solutions

Technology Infusion

Grewal, Dhruv, Stephanie Noble, Anne Roggeveen, and Jens Nordfalt, “Tech Infusion: How In‐Store Technologies Influence Sales through Social Presence and Identity Expression”

Digital Price Tags

DISTRICTS• Consists of elements that are found to have common characteristics• The shopper looks like he / she "enters" a district

5. District

Assortment Organizations

Substitute-based

Complements-based

Sarantopoulos, Panagiotis, Aristeidis Theotokis, Katerina Pramatari, and Anne L. Roggeveen (forthcoming), “The Impact of a Complement‐Based Assortment Organization on Purchases,” Journal of Marketing Research.

Field Study

Fortune Global 500 grocery chain

Two stores – same firm, similar floor space, assortments, number of staff and customer socioeconomic properties

Development of the Complement-based Organization• Analyzed sales affinities on all purchases over

17 month period

Development of the Complement-based Organization

Development of the Complement-based Organization

Sales - Pre & Post

Using the Retailscape to Impact Customer Experiences

P L E N DPath Landmark Edges Nodes Districts

Firm A Firm B

Customer

Goal is to increase your relevance

Relevance is Key

Use Data to Help Understand Relevance

Retailer A

Customer

Retailer B

Personalization

Privacy Concerns in Retailing

Privacy

Personalization

Aguirre, Elizabeth, Anne L. Roggeveen, Dhruv Grewal and Martin Wetzels (2016), “The Personalization-Privacy Paradox: Implications for New Media,” Journal of Consumer Marketing, 33 (March).

Customers can now be tracked at all stages of customer journey

online offline

Facial analytics Smartphone

tracking

Retailers Must Have Customer’s Trust

John, Kim, and Barasz (2018); PWC (2019); Inman and Nikolova (2017); Farshidi 2016; Aguirre et al. (2015, 2016)

Understanding the Personalization-Privacy Paradox to

Create Customer Experiences

Customer Experience

Vision Audition

TouchTaste

Olfaction

Privacy

Personalization