How to Enhance Customer Experience in Retail: Investigations Through a Case Study

Abstract

In the last years Customer Experience (CX) has become a novel
approach to obtain a competitive advantage for numerous companies. The complexity of interactions among the customer, the physical environment, the company’s employees, the product and/or related services requires transdisciplinary methods and tools from marketing, engineering, human resources and culture, technology, organization, management and phycology. The present papers aims to provide an overview of what Customer Experience is, how it can be used to design the meaningful touchpoints between the customer and the company
and propose a CX-oriented strategy to design them in stores. Some interesting insights are discussed thanks to experiments performed in a real test case.

Full text

How to Enhance
Customer Experience in Retail:
Investigations Through a Case Study
Luca GIRALDI, Maura MENGONI1 and Maurizio BEVILACQUA
Polytechnic University of Marche
Abstract. In the last years Customer Experience (CX) has become a novel
approach to obtain a competitive advantage for numerous companies. The
complexity of interactions among the customer, the physical environment, the
company’s employees, the product and/or related services requires
transdisciplinary methods and tools from marketing, engineering, human resources
and culture, technology, organization, management and phycology. The present
papers aims to provide an overview of what Customer Experience is, how it can be
used to design the meaningful touchpoints between the customer and the company
and propose a CX-oriented strategy to design them in stores. Some interesting
insights are discussed thanks to experiments performed in a real test case.
Keywords. Customer experience, Touchpoints, Retail channels, Journey Mapping
Introduction
In the recent years, the creation of an enjoyable shopping experience has become one
of the factors to effectively help enterprises in competing in the arena of retail. Several
authors carried out researches to demonstrate that consumers who enjoy the shopping
experience buy more goods than those who do not, are more satisfied and reveal a
repeat-purchase behaviour (loyalty).
Customer experience (CX) plays an important role in customer satisfaction and
loyalty attitude. They are linked to the fun provided in the store by adding attractive
areas such as bars, gyms and games, to the emotions created by the enjoyable elements
at the point of sale and to the benefits achieved by customers. The identification of
which strategies are more successful for a specific retail passes through the
understanding of the customer journey and hence of his/her expectations. There are a
variety of techniques for analysing the journey as video ethnography, mapping process,
touch point analysis and the understanding of all activities and constraints. As well as
there are a variety of techniques to design proper CX elements to change the journey
and hence the customer behvaiour.
In this context the present research proposes a structured approach to map the
journey and design CX. It is then illustrated by a case study in fashion retail where an
1 Corresponding author, E-Mail: m.mengoni@univpm.it
Transdisciplinary Engineering: Crossing Boundaries
M. Borsato et al. (Eds.)
© 2016 The authors and IOS Press.
This article is published online with Open Access by IOS Press and distributed under the terms
of the Creative Commons Attribution Non-Commercial License 4.0 (CC BY-NC 4.0).
doi:10.3233/978-1-61499-703-0-381
381

enjoyable experience on the touchpoint after payment is designed and prototyped to
make the shopping activity more attractive and funny.
Customer journey mapping allowed the research to identify who are the main
target customers, to depict a set of representative personas, to understand their
expectations and wishes, to formulate a problem and find proper strategies to improve
their experience at the final touch point. For instance, the analysis actually highlighted
that after the payment process clients generally take the way out without any happiness
and the last record is only the payment activities. The actual approach has been
changed by giving a “GLUE” (Giving little unexpected extra). It consists of a game
that makes the contest funny and recordable. It is a really out of context object
positioned on the desk after the cash register area.
The effectiveness of the game prototype and the success of the adopted approach
are proved thanks to the collection of customer answers. Interviews were submitted to
more than 1000 customers with a fidelity card in order to verify the success of the
adopted approach. A report elaborating the collected results was created to share the
customer experience approach across the company departments. Most customers found
the game funny; it generated an increased income of cross selling and about 30% of
persons decide to ask for a fidelity card to play with it.
1. Customer Experience and the role of touchpoints along the Journey
Retail is a market where an extensive range of products and commodities are made
available to customers. It has been demonstrated that one of the meaningful levers of
customers’ decision-making to purchase, involvement and motivation is the quality of
the marketing experience and its ability to stimulate the emotional and experiential
parts [1]. This phenomenon finds out maximum fertility in retail (e.g. fashion, furniture
and household products) where creativity, style, individuality, and more generally the
personality of each user influence customers’ decision-making [2]. In the last years
what is happening in retail is a focus shift from product and service design to
“customer shopping experience” design and to the definition of all clues that people
detect in their shopping process and that make it satisfactory [3]. This does not mean a
lack in product/product-related-service performance and perceived quality but an
increasing orientation to enhance the experience they provide in the physical and/or
digital shopping environment.
The Customer Shopping Experience aim is actually to give to the consumer an
opportunity, an emotion or a special memory of the shopping in order to build loyalty,
improve motivation of purchuase and manage the relationships with the customer [4].
That leads to consider retail not only as a market where products and fashion
collections are shown to be bought but mainly a space where events happen. The
possibile events are for instance the opportunity to have a personal shopper to reivent
the customer’s image, to enjoy happy hours and shows, to attend to the presentation of
a new book by its author. The shop can become a DJ set. In all cases, the goal is to
ensure that consumers realize a special experience in the store that has to leave an
emotional moment and memory [5].
The design of experiential services and hence of elements stimulating customer
emotions, creating a dinstinctive experience and fun at shops, is an emergent scientific
area and a challenge for many organizations [6].
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CX is the internal and subjective response that customers have to any direct or
indirect contact with a company. Direct contact generally occurs in the course of
puchase, use and service while indirect contact often involves unplanned encounters
with representatives of a company’s products, service or brands and takes the form of
word-of-mouth recommendations or advertising [7]. In addition, CX’s construct is
holistic in nature and involves the customers’ cognitive, affective, emotional, social
and physical responses to the retailer [1].
CX is co-created through the multiple customer interactions with the several
shopping experience elements or clues set along his/her journey [3]. These elements are
the context within which an experience takes place and, are generally called
touchpoints. Their identification is not a trivial task because they depend on the
specific business that has different overviews and prospective interactions with the
customer [8], are in pre- and post-purchase [9] and occur through different retail
channels [10]. However, if the company is able to detect the touchpoints and design the
clues to improve CX, it will be able to introduce the right journey’s elements to
influence the customer to choose/repurchuase the products and/or service it offers.
Customer experience studies exploit the journey mapping technique to identify all
touchpoint episodes encountered during the service delivery process [11] and
subsequently analyse the customer response to the introduced elements in terms of
satisfaction, fun, boredom and frustration. The customer journey means the customer’s
transition from never-a-customer to always-a-customer as defined by Christopher et all.
[7]. It is a visual draw of the CX that describes where the customer could be in contact
with company directly or indirectly showing the different touchpoints characterizing
this interaction. The customer journey maps can be used to represent the mental user
models (ie. empathy map), the flow of interactions and all possible touchpoints
between the company and the customer. Their analyis are very useful for companies to
set strategies to take the customer from awareness to loyalty.
If we would make an example customer journey could be compared to a bus trip
from the central bus station to city center. We could have many busses that leave the
central bus station and any person choose is own trip considering the travel he/she
wants to make. During this trip you have different views and many stops where you
can get off but the aim of any company is to bring you to the city center and let you
enjoy the trip in order to consider to do it again and/or suggest it to somebodyelse.
Numerous studies confirm that satisfaying customer responses can be achieved on
using cues, stimuli and service encounters [12-15] at the touchpoints of the his/her
subjective journey [6; 16]. Different techniques, both qualitative and quantitative, are
proposed in literature to draw customer journey maps [17] and measure the quality of
CX as follows: direct interviews, surveys based on data collected from web resources,
role-playing, ethnographic research and analysis, etc. [18]. However most researches in
this field stops at the definition of the emotional curve superimposed to the detected
map. They do not usually propose a structured method to support designers and
marketing analysts in the identification of use scenarios, interactions at touchpoints,
customer satisfaction evaluation and design of touchpoints to improve CX.
Literature overview points out some critical issues to be faced in CX field as
follows: 1) a scarcity of systematic research on CX Management and calls for a theory-
based conceptual framework; 2) a lack of CX-oriented methodologies to coherenty
introduce CX in product design, service offerings, company’s organization, 3) the
necessity to move beyond the elements under the retailer’s control (e.g. store
atmosphere, music, lightings, price and assortments) to a broader undestanding of the
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multiple factors affecting CX; and finally 4) an inadeguacy of reports of real
experiences in retail.
2. How to improve CX: the proposed approach
The proposed approach to tangibly improve CX in retail consists of five steps. Each
step supports the designer respectively in analyzing the customer journey, identifying
the main drawbacks and opportunities/strategies to improve the experience, designing
successufull touchpoints, prototyping solutions to make the shopping activity more
funny and test sample customers’ responses. The approach is defined for the retail
sector and in particolar to improve the shopping experience. For that reason, it does not
consider any other direct or indirect contacts between the company and the customer
except for those occurring in stores. They are as follows:
STEP 1: Analysis of customers in retail stores through the direct observation of
people interacting with products and personnels in a specific atmosphere and enjoying
the shop services (e.g. Wi-fi connection, dressmakers, personal shopper). The
ethonographic analyis is also supported by Video Interaction Analysis technique (VIA).
STEP 2: Representation of the Customer Journey Map to identify the main digital
and physical touchpoints in the store. It is in the form of a curve in a 2D cartesian space
where the x-axis reports the episodes of the journey and the y-axis the achieved level of
loyalty. IDEF 0 and 3 techniques can be used to better define and then decompose the
interactions, input/output flows, main actors and process constraints [19].
STEP 3: Identification of critical events by creating an emotional curve to
represent the level of customers’ satisfaction and to recognize which touchpoints need
to be redesigned. Two tools can be used to carry out this step: structured or semi-
structured (e.g. conversational approach) interviews and the application of the ZMET
technique according to Zaltman [20]. At this stage, the designer has to list all possible
strategies for improving customer satisfaction such as gamification [ 21], and select the
best one to overcome main limitations. The result of STEP 3 is the definition of the
touchpoint requirements to apply the CX strategy.
STEP 4: Design of touchpoints and prototyping of solutions implementing the
identified strategy. The design can regard some elements of CX, specific clues and
product-related services to improve the contact.
STEP 5: Experimentation of the prototyped solution in real retail stores and
measurement of customers’ satisfaction by 1) ethnographic research (e.g. direct
observation by experts) and/or 2) submission of structured or semi-structured
interviews and/or 3) the application of the ZMET technique. The experimentation is
followed by the elaboration of collected data by representing the feedbacks in a new
emotional curve and by the definition of guidelines to improve CX.
3. The case study in fashion retail: an investigation
3.1. The applicative context
The proposed CX-oriented approach had been preliminary applied in fashion retail. The
industrial partner of this research is an Italian large-sized company, producing shoes,
bags, clothes, fashion accessories, etc. for three three major brands with almost 500
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stores Worldwide. It produces goods both for male and female, children and adult. It is
positioned in the low-cost market sector. Its main competitors are brands such as H&M,
Zara, Bershka and Uniqlo. The company brand where the experiment took place is the
one oriented to youngers and it proposes cheaper fashion goods than others.
3.2. The map of the customer journey in retail
The map of the customer journey is the result of two parallel studies: one conducted in
collaboration with the industrial partner and one based on the ethnographic analysis of
real customers into the retail stores.
A set of interviews was submitted to the company’s marketing, design and sales
departments. The elaboration of the collected answers led to the definition of the
solutions in terms of ways to be in contact with the customer adopted by the company
to achieve the maximum level of loyalty. Results are represented in the graph of Fig.1
that correlates possible phisical and digital touchpoints with the achieved confidence
level in the current company / customer relationship. The graph shows that the highest
level of loyalty, demonstrated by the ownwership of the fidelity card and to the
availability of customer personal data such as telephone number and email, is reached
at the stage of purchasing both in the website and in stores. This result pushes the
analysis to focus on the shopping experience in stores.
The second study took place in eight sample stores, located four in the centre, two
in the north and two in the south of Italy. All have more than 1000 square meters of
surface. Their layout is arranged into three sections as follows: Men, Women and Kids.
They provide a free wifi service. Moreover inside the store there is a radio system with
dancing music and an ambient profume. In all stores the observation of customers’
behaviour was repeated thrice within a day’s time: in the morning (from 10:00 to
11:00), at lunch break (from 13:00 to 14:30) and finally in the late afternoon when
there is the maximum crowd (from 18:00 to 19:00). Videos were recorded and then
elaborated to create an IDEF0 model of the purchasing process till the 2nd level of
activities’ decomposition. It allows the analyists to identify the main episodes of the
customer journey in the shops (reported in the columns in Figure 1).
Figure 1. Correlation between physical and digital touchpoints and the measured loyalty curve.
L. Giraldi et al. / How to Enhance Customer Experience in Retail 385

20 customers for each store were selected and conversational interviews were
submitted to investigate the degree of satisfaction at the different physical touchpoints.
In addition two experts observed customers to uncover the deeper motives of customers,
the emotional peak and end moments within the Customer Journey. At this stage the
ZMET technique was not applied becaouse the study was only preliminary. This
analysis lead to the creation of the emotional curve reported in Figure 2. In it evident
that the final touchpoint is the most critical episode in terms of customer satisfaction.
Most interviewed persons actually declared to be annoyed. The last experience they
had is actually payment. However, it leaves a footprint and a memory of the shopping
experience crucial for the loyalty. Therefore this experience must be changed by
introducing a disruptive initiative that completely modify the customer emotional state.
Figure 2. The emotional curve mapped in the customer journey in fashion stores.
The result of STEPs 1-3 is a list of requirements as a roadmap for CX element
design as follows:
- to introduce a disruptive and impressive CX element at the final touchpoint and to
create an extremely positive emotion in order to drive loyalty;
- to create a novelty effect;
- to leave a memory of the shopping experience and give something to remember it
in order to motivate to come back again, to recommend the brand to friends, to
defocus the attention from payment;
- to engage the customer by adding a gamified system at payment;
- to stimulte positive perceptions by involving multiple sensory channels;
- to use funny colors and taking up an area comparable to the cash dimension;
- to make use of familiar images and playful objects.
3.3. The design and prototyping of the final touchpoint
The above-mentioned requirements were framed in the following design problem:
Creation of an attraction (what?) at the final touchpoint (where?) by proposing a
challenging game (how?) to engage loyal customers (to whom?) in order to create a
memory inducing repurchasing and spreading the word to friends (why?).
The solving design concept regarded to create a game at the final touchpoint that
allowed customers to play and in case of reward to receive a gift. This strategy
implemented the three main parts of gamification that are the motivational affordance,
the resulting psychological outcome and the further behavioural outcome as reported in
[22]. Figure 3 sums up how the customer journey was reconfigured by breaking the
payment experience. Actually, after the payment the customer equipped with the
fidelity card could fish one ball and get the prize associated with the extracted colour.
Two of the four prizes allowed the customer to achieve an extra online bonus that gives
the way of the cross selling and bring him/her to an “omnichannel” experience.
L. Giraldi et al. / How to Enhance Customer Experience in Retail386

Figure 3. The model of the introduced customer journey at the final touchpoint.
The concept was then embodied into a sort of “fishing box” that represents a
challenge in the current stores of the brand (Figure 3). The box was made of a printed
plastic coated cardboard material containing 16-18 coloured balls. It was shaped as a
section of pyramid that remembers a pop-corn box like that in movie theatre. It was
closed by a cover with a hole in the center whose diameter was large enough to allow a
hand to enter and move in the box. The selected colors were yellow, blue and fuchsia,
chosen because they are strong, impressive and funny. The box was 40 cm high and
positioned on the desk. Position and dimensions were chosen to avoid customers to
look inside the box while fishing the balls. The total cost for one box was of 40 Euro.
Figure 4. The fishing box prototype.
The dynamic of the game is as follows: once the loyal customer has paid at the
checkout he/she is invited to fish in the box, called "POP BOX", where there are 16-18
balls with 4 different colors. A different scenario is linked to each color (i.e. Green 
Lollipop; Yellow  online discount; Blue  online discount; Red  you did not win).
Before playing, the customer is informed about the game and the procedure to follow
by the shop assistant. While playing, he/she can watch all possible prizes in a display
with a music that creates suspence.
3.4. Investigation of the solution success by interviews
Semi-structured interviews are coupled with ethnographic research conducted by two
experts in Human Studies and Marketing to explore the (unconscious) needs, wishes,
associations and motives of customers in case of playing with the Pop-Box.
L. Giraldi et al. / How to Enhance Customer Experience in Retail 387

The Pop-Box prototype was installed into two stores. Investigations were carried
out in two different periods both lasted 1 month: one of great turn-out and one with a
lower number of visitors. Each period lasted two weeks. In Period 1, the Box is
fulfilled with 9 red balls(you did not win), 3 green balls (online discount), 3 blue balls
(online discount), 3 yellow balls (lollipop). In Period 2 the Box is fulfilled with 1
POPBOX with balls: 3 red balls(you did not win), 3 green balls (online discount), 3
blue balls (online discount), 3 yellow balls (lollipop). Differences of balls’ colors in the
two periods depend on the fact that the analysts would test if the re-purchuase
percentage was linked to the chance of failure. The probability to failure is higher in
period 1 that in period 2. So, the analysts expected that customers would come back to
the shop and play again till they would win. This not happened.
The Box was positioned at the end of the cash desk and a shop assistant informed
customers about the aim and the procedure of the game and she/she invited him/her to
fish a ball. Moreover, the assistant specified that the game was dedicated only to
customers with a fidelity card.
Respectivelty for each period, Table 1 and 2 report the number of customers that
played the game, the number of new fidelity cards that were subscribed to enjoy the
game and the registered emotional state.
Table 1. Results from Store 1.
Tickets
Tickets
made w ith
loyalty
card
loyal
customers
fishing balls
N. of
enrolled
customers
thanks to
the game
%
satisfied
people
%
indifferent
people
%
disappointed
people
Period 1
3379
654
251
25
76
12
12
Period 2
2052
258
227
13
72
20
8
Tot
5431
912
478
261
74
%
(Average)
16
%
(Average)
10
%
(Average)
Table 2. Results from Store 2.
Store 2
Tickets
Tickets
made w ith
loyalty
card
loyal
customers
fishing
balls
N. of
enrolled
customers
thanks to
the game
%
satisfied
people
%
indifferent
people
%
disappointed
people
Period 1
1987
932
257
17
82
11
7
Period 2
1491
628
66
11
72
25
3
Tot
3478
1560
323
38
77
%
(Average)
18%
(Average)
5%
(Average)
The emotional sensation is the result of the elaboration of experimental data
retrieved from the answers to direct interviews submitted to customers by the shop
assistant, the pictures of customers’ face expression taken after the game (Fig. 4) and
L. Giraldi et al. / How to Enhance Customer Experience in Retail388

finally the registered number of people that enrolled to the loyalty program to play the
game. Pictures were useful to experts to elicit the unconscius feedback to the game.
The scope of this investigation is to understand the emotion of the client in the last
touchpoint and how much the client is engaged in the gamification to remember his/her
experience in the store. The introduction of the Pop-Box increases the number of the
episodes characterizing the last part of the Customer Journey in the stores. Figure 5
reports the emotional curve deriving from the elaboration of the submitted interviews
to loyal customers and the analyis of pictures taken by experts after playing the game
(Figure 5). It reveals an increase of positive sensations such as curiosity and happiness
connected respectively to the possibility to game and to win a prize.
Figure 5. The fishing box prototype positioned near the cash.
Figure 6. The emotional curve after the introduction of the Pop-Box.
From the analyis of the interviews, pictures and number of new fidelity cards it is
worth to notice that 1) the game is very suitable for kids and less for mature people; 2)
children are involved with the game and its colorful graphics to the extend to push their
parents to subscribe a fidelity cards and to play with them the game; 3) customers
appreciate more the gift in store and less the traditional online coupons; 4) the last
episode of the journey transform the emotional state from “annoyed” to “happy”.
4. Conclusion
The research describes a structured method to design the touchpoints in stores based on
a Customer Experience-oriented approach. It allows the customer journey to be mapped
and strategies to realize an enjoyable experience to be applied. The final aim of the
method application is to make the customer more loyal, create a positive memory of the
experience and push the customer to repeat the purchase. Although the investigations
are only preliminary and they give just some insights about the success of the approach
application, it contributes to the current state-of-art in design methods as it introduces a
customer experience point of view to traditional participatory design. It merges two
L. Giraldi et al. / How to Enhance Customer Experience in Retail 389

disciplines that are marketing and design. Moreover the experiemtnal results can be
useful for retailers who wants to improve the CX in their stores.
Future research will focus on the application of the ZMET techniques to better
elicit unconscious customer sensations and on the collection of more case studies in
this field to validate the proposed approach.
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