It’s well-known that the environment a service is executed in is important. The physical environment is rich in cues about the quality and character of the service, cues that consumers look for both before and after buying and that affect their experience of it. With many services (e.g. hotels), the company’s own premises is an integral part of the service, and even when it’s not (e.g. broadband), paying attention to the shop, showroom or similar (the servicescape) can be very rewarding.
During the 00s, there has been a trend for service companies whose products are considered dull, complicated and a necessary evil by consumers (banking, insurance, etc) to look at where consumers do enjoy to go and consume: shops selling designer objects or clothes, coffee shops, and try to emulate the positive experience of visiting these places. The concept is rather simple: by borrowing bits from a service experience that is fun or pleasurable, the service provider deemed less exciting by consumers becomes more enticing. Even though the coffee or the smartly designed umbrella is just a small part of the actual business, the feeling of being in a positively charged, relaxed environment like a café or a shop puts you in a different mindset than at the traditional bank office. Most importantly, if successful, it changes behaviour at the branch. To talk with Mary Jo Bitner, customers exhibit more approach behaviours: coming in, staying, spending money, coming back.
Approach or avoid? A decision based on reactions to the servicescape.
Two Scandinavian examples of this from the last decade: Danish Max Bank rolled out their Max Café concept in 2004, where you can “get a cafè latte, a talk with your bank manager, or see what banking products we can offer”.
Having a coffee at a Max Café. Images from the Danish Design Council.
Similarly, Swedish banking and insurance giant Länsförsäkringar built their Länsförsäkringar Shops (concept start: 2007) around the pleasurable consumption of consumer goods. The servicescape, an elegant and inviting space created by Swedish retail branding firm Bas Brand Identity, is similar to a design store with added space for meetings. The shop sells a selection of items that are related to Länsförsäkringar’s banking/insurance products (e.g. smart shopper with protection from pickpockets) or, not all that related (e.g. hand crocheted iPod cover).
Inside a Länsförsäkringar Shop. Image from Bas Brand Identity.
Incidentally, the same phenomenon could be seen within art spaces at the same time (the 00s). In my bachelor’s thesis, for example, I discussed how the Modern Museum in Stockholm moved towards the retail shopping and café experience – both in its visual communication and in the increased prominence of its museum shop, as well as the addition of an espresso bar (adding to the Modern Museum/Architecture Museum’s existing two restaurants).
Both the Max Cafés and the Länsförsäkringar Shops are, in my opinion, excellent examples of how using the service environment strategically can transform how customers interact with their service provider. I wonder though, when it comes to borrowing concepts for your less exciting service, what will come next. The idea of shopping and coffee shop visits as the most pleasurable of experiences is of course cultural, and therefore in flux. The attraction with these places is often connected with the idea of turning your space into a meeting place, and this role can change. Perhaps the critique of the excesses of consumer culture will lead to a radical shift in direction for where we want to meet and relax, for example towards connecting with nature? And in turn, will next-generation banking be placed in rooftop gardens? Or, more weatherproof, the bank branch turned into a relaxing orangery? (Or a zoo. Just imagine…)
It’s interesting as well, that these two activities (shopping for pleasure, drinking lattes) are typically seen as female-oriented. Either it’s a conscious targeting, or just the fact that they are easily incorporated into a service business of this kind (the banking pub could be problematic, after all). But maybe there’s an opening for servicescapes of a less gendered kind here. In any case, the more services move completely on-line, the more we’ll see innovative service environments that will offer us enjoyment and pleasure. even when using the provider’s main service doesn’t. Otherwise, what’s the point of having them at all.
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[...] This post was mentioned on Twitter by HugoBus. HugoBus said: Great post. Really thought provoking, I’m always finding myself affected by my surroundings.[...]
The Joy of Going to the Bank – Borrowing Spaces from Cafés and Shops –#brand #retail #servicescape http://bit.ly/aCqPGy
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