It’s no secret that customer experience is a huge element in any successful retail equation. Retailers have come to realize that it’s simply not enough to provide customers with great product; that in a crowded marketplace, to achieve a competitive edge, retailers need to connect with their customers by delivering a great customer experience. But there’s more to it than that. A great customer experience makes for happy shoppers. And there’s science to prove it.
As an avid reader, with an innate curiosity about consumer psychology, I often pick up books, that in any way whatsoever, speak to human nature. Recently, I came across an international bestseller, The Happiness Advantage, by Shawn Anchor which seeks to enrich readers’ lives through the power of positive psychology. The Harvard lecturer and now business consultant, in developing his Seven Principles of Positive Psychology, has compiled and summarized research from around the world on the subject of happiness, including some of his own studies.
Happiness, has been a hot subject over the past few years, with bestsellers from Gretchen Rubin (The Happiness Project) to recent autobiographies by Camilla Gibb (This Is Happy) and Jenny Lawson (Furiously Happy) to an eponymous song and now accompanying picture book by Pharrell Williams (Happy). But, few books with the possible exception of Daniel Gilbert’s Stumbling on Happiness have revealed insights behind what makes people happy, as Anchor’s book does. For me, as a designer and lover of all things retail, the insights, although not specific to the world of retail, are absolutely relevant to retailers.
What retailers can learn from The Happiness Advantage:
It’s the experience (not the product) which makes customers happy
According to Anchor, happiness is not achieved through possessions but rather through experiences. He references Robert Frank’s book, Luxury Fever, when states that
…while the positive feelings we get from material objects are frustratingly fleeting, spending money on experiences, especially ones with other people, produces positive emotions that are both meaningful and more lasting
Here, I beg to differ a wee bit. There are those indulgent purchases that are a source of ongoing happiness for consumers; that sports car that you always dreamed of owning; that designer suit or little black dress that makes you feel like a million bucks every time that you put it on; or those 800 thread count sheets that make your bed the perfect oasis at the end of the day. Nonetheless, for retailers it’s a reminder that product isn’t everything – and that the customer experience carries more weight than they might realize. Of course, the ultimate achievement for any retailer is to offer both a product that in itself delivers an on-going experience and an entirely engaging, enjoyable in-store customer experience. The omnipresent example of retailing perfection, Apple accomplishes that through many of their innovative products and their groundbreaking retail experience. And Kit and Ace offers their super comfortable technical cashmere in a store that’s part lounge, part art gallery, part coffee shop, part tailor shop.
Anticipation is as powerful as the experience
According to Anchor’s research,
Often the most enjoyable part of an activity is the anticipation……Anticipating future rewards can actually light up the pleasure centers in your brain much as the actual reward will.
Yet another reminder to retailers of the importance of providing a unique customer experience that is utterly memorable, enjoyable and compels the customer to want to return again and again. Think about it. Do you ever eagerly anticipate a shopping excursion to your favourite store?
Spending on others is a joy
Research has shown that spending money on other people increases happiness. For retailers, that means there’s an opportunity to tap more into gift-giving by providing suggestions to customers. Sure, many retailers rev things up in this department during the lead up to Christmas but never think to make it a 365-day-a-year practice.
Retailers, take it from science. Great experiences make for happy people – and happy shoppers.
