design:retail - September/October 2019 - 30

EXPERIENCE

DESIGN:RETAIL

SEPT/OCT 2019

PERSPECTIVES

Be Our Guest
HOSPITABLE THINKING CAN HELP
PROVIDE CUSTOMERS WITH A
MEMORABLE STORE EXPERIENCE
of retail continues to evolve, the
lines that define it continue to blur. Manufacturers are becoming retailers, consumers are engaging
across multiple channels, and brands are exploring
opportunities in entirely new formats and typologies. It's 2019, so of course you can have dinner at
Restoration Hardware and then sleep in a Taco Bell.
And while disruption like this is often found at
the edges of the traditional retail landscape, specifically digitally, there's plenty of opportunity for
meaningful innovation in the old-school, brick
and mortar of physical retail. For example, many
retailers currently are focused on improving the
transaction process repurposing elements of their
e-commerce playbook to make their in-store experience as personalized and frictionless as it is online.
Follow this through to the end, and you're walking
out the door of the local Amazon Go.
But improving the transaction process is only
part of the answer. Lynn Juang, managing director
at Brand Bureau, explains: "The real path to differentiation and loyalty is creating a powerful and
enduring experience throughout the retail journey-
from awareness and exploration, to interaction and
transaction, and subsequently advocacy and engagement. You're building a long-term relationship
with your consumers and not just when they're
checking out." In other words, treat your customers
like guests, and your guests will become customers.
As a company, we explored and analyzed a vast
array of guest experiences in an attempt to decode
the essence of hospitality and the common characteristics of the most impactful guest experiences.
Through this process, "security," "surprise" and
"significance" rose to the top as the three overarching principles that both define the human
response to social and environmental interaction,
and are integral to creating experiences that are
memorable and resonate at a gut level-what we call
"Hospitable Thinking."
Security. On a primal level, humans have an
instinctive need to feel safe and secure-to reduce
anxiety, mitigate stress and stimulate well-being.

➞ AS THE CONCEPT

JON CRAWFORD-PHILLIPS
CHIEF STRATEGY OFFICER
BRAND BUREAU

"Hospitable Thinking
isn't just good for the
soul, it's good for the
bottom line, too."

While spatial design and wayfinding are typical
domains for delivering security, Trader Joe's is a
great example of a truly innovative approach of
delivering security through service experience. In
a category that is dominated by labor-cost management and automation, the average Trader Joe's
employs three full-time staff members to answer
any questions and resolve any issues guest may
have as they wait in line, ready to check out.

Surprise. Unpredictability and surprise trigger
a physiological response in humans-releasing dopamine into the pleasure centers in our brains-that
makes new experiences more powerful and more
memorable. Delighting guests often is achieved
through innovative programming and empowering employees, and lululemon continues to do
a great job of this. Their current strategy-to build
larger "experiential" stores that house yoga studios,
meditation rooms, juice bars and event spaces-
demonstrates a shift in their focus from lifestyle
to experience.
Significance. The ultimate luxury in life is a
sense of purpose-the feeling that you are unique,
special and significant-and that someone else is
thinking of you, what you need and what you want.
As a company, Apple does a great job of delivering significance in the retail environment-you're
greeted by a host as soon as you walk in the door,
invited to take seat, and the salesperson or engineer
will come and find you to assist with your purchase
or problem. It's in their store, but on your terms.
"Beyond the physiological response in creating
loyalists at an emotional level, this type of thinking significantly impacts revenues for the retailers,"
notes Lemor Moses, managing director at Brand
Bureau. "Most public retailers see average sales of
around $350 per sq. ft., but Trader Joe's, lululemon
and Apple generate $1,734 per sq. ft., $1,560 per
sq. ft. and $5,546 per sq. ft., respectively, proving
that Hospitable Thinking isn't just good for the soul,
it's good for the bottom line, too."
The physical retail experience is here to stay, and
its future is a lot more interesting than ship-to-store
and self-checkout. Every square foot is an asset to
foster and deepen relationships with your most important stakeholders: your guests. Treat them well,
and they might even become customers.
➞ B I O JON CRAWFORD-PHILLIPS is chief strategy officer at Brand
Bureau, AvroKO's multidisciplinary branding and design studio. Brand
Bureau works across the entire guest experience building scalable brands,
experiences and interiors for hospitality, retail and travel clients.

design:retail - September/October 2019

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