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Using Empathy to Enhance
the Physical Retail Experience
SXSW:Austin, TX
Eloise Zoppos
Senior Research Consultant
ACRS Research Unit
THE RETAIL APOCALYPSE MYTH
The number of weekly
bricks-and-mortar
shoppers increased in the
last three years from 36%
in 2014 to 44% in 2017
Retailers opened 4,080
more stores in 2017 than
they closed and plan to
open over 5,500 more in
2018
Source: PwC’s Global Consumer Insights Survey 2018; National Retail Federation
For each
company
closing stores,
2.7 are opening stores
0 20 40 60 80 100
Superstores
Convenience Stores
Mass merchandisers
Speciality softgoods
Speciality hardgoods
Drug stores
Food / grocery
Fast food
Bar / restaurants
Department stores
% Opening Stores vs. Closing
% Closing Stores % Opening Stores
“Physical retail isn’t dead.
Boring retail is.”
– Steve Dennis,
Retail contributor to Forbes
How not to be
boring? By
using empathy
to create and
enhance the
physical retail
experience
BUILDING A RETAIL EXPERIENCE
AUTHORITY & RELIABILITY
AUTHENTICITY & HONESTY
EMOTION & EMPATHY
UNDERSTANDING EMPATHY IN RETAIL
ABILITY TO
UNDERSTAND AND
RESPOND TO THE
EXPERIENCES OF
OTHERS
KNOWING WHAT
PRODUCTS
CONSUMERS NEED
UNDERSTANDING
WHAT CONSUMERS
WANT TO SAY
ABOUT THEMSELVES
DESIGN EXPERIENCES THAT MEET AND EXCEED THEIREXPECTATIONS
HUMANISED TOUCHES
●
INTEGRATED WELLNESS
●
THIRD SPACE CONNECTIONS
●
TECH-ENABLED PERSONALISATION
USING EMPATHY TO
CREATE RETAIL EXPERIENCES
1. HUMANISED
TOUCHES
Focusing
on the customer
as an individual,
not just as a consumer
IKEA
Understanding
what the customer
needs, when they
need it
HUMANISED
TOUCHES
Nordstrom Rack
A small store
change tells
customers they're
not expected to
like everything
they try on
HUMANISED
TOUCHES
Mimco
Providing the
customer the
opportunity to
personalise their
retail purchase
with what they
really love
Source: Alexandra Nea
HUMANISED
TOUCHES
2. INTEGRATED
WELLNESS
Incorporating fitness
and healthy lifestyle experiences
into physical retail offerings
Source: Lou & Grey
Lululemon
In-store
Mindfulosophy
pods promote
relaxation at the
point of purchase
INTEGRATED
WELLNESS
Saks Wellery
Studio
Combining wellness
treatments and
services with
premium workout
gear to sell the
‘new luxury’
INTEGRATED
WELLNESS
3. THIRD SPACE
CONNECTIONS
Creating
community
spaces that bring
people together
MoMA Design Store
Communal spaces
offer new occasions
to visit outside of the
shopping trip
THIRD SPACE
CONNECTIONS
Starbucks
x Tsutaya
Turning public
places into
meaningful
spaces
Maybean overlay on this
image so it’s not as bright?
Source: Matcha
THIRD SPACE
CONNECTIONS
iStock-658404968
4. TECH-ENABLED
PERSONALISATION
Using augmented
reality technology to help
create a personalised
try-and-buy experience
Nike
Integrating the
physical and the
digital to enable
personalisation
in a way that
eCommerce alone
can’t compete with
TECH-ENABLED
PERSONALISATION
Source: InsideHook
Sephora
Empowering
customers to create
personalised looks
and become their
own expert
TECH-ENABLED
PERSONALISATION
Source: VRScout Inc.
Ikea
Allowing customers
to use AR in their
own domain to help
them make a well-
informed decision
Source: Ikea Place
TECH-ENABLED
PERSONALISATION
Source: Ikea Place
ACRS, Monash University
Building S, Level6
26 Sir John Monash Drive
Caulfield East VIC 3145
+61 3 9903 2734
eloise.zoppos@monash.edu
monash.edu/acrs

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