Changing mindsets

Abstract

Despite the rise of digitalization, and consequently e-commerce, the physical fashion store remains relevant in the retail environment. Still generating almost all sales. However, stores are shifting from a place to buy to a place to be. Where experiences are more important than products. Inevitably, to fulfil customers’ needs and differentiate from the competition a personal experience is necessary.
With arising trends and technologies, retailers are overwhelmed by the possibilities and in need of guidance. Other sectors, such as the cultural sector, provide an opportunity for inspiration. In this thesis, the possibilities for museums as inspiration for fashion retail are explored on a strategic level. Resulting in a strategic model that guides retailers towards creating meaningful customer experiences. By researching the retail and museum sector an opportunity is identified: museums have a higher reputation than companies. Reputation is defined as the emotional bond between a company and its customers. Based on insights he following interpretation is established. Reputation is built through experience and trust. By delivering the expected customer experience a trustworthy relationship is developed, resulting in a high reputation. This reputation is maintained when expectations are exceeded, by providing unexpected elements and room for serendipity in explorative retail spaces. Based on an online customer research, performed in context, two reasons for the reputation gap between retail and museums in Rotterdam can be described: museums meet the expected customer experience and museums have a bigger impact on society. This impact is related to their contribution to heritage, education and entertainment. Therefore, applying a purpose-driven strategy. Defining purpose as the fundamental reason for existence. Inspired by museums, retailers are able to increase reputation and create a meaningful customer experience by adopting a purpose-driven mindset. Even though a purpose itself does not change, it encourages change by setting an unreachable goal. Striving to reach this goal, retailers need to make decisions guided by their purpose. Not only does purpose create the foundation for a trustworthy customer relationship, it also increases internal alignment and motivates employees. As a result, the Purpose Paradigm is introduced. A strategic model that identifies the steps towards implementing a purpose-driven mindset in retailers. Aiming at behavioural change inside the company that leads to employee engagement and facilitates decision-making. In return, creating a genuine and meaningful customer experience. Being purpose-driven is a long-term and sustainable approach for retailers reacting to the changing retail environment. The implementation of the Purpose Paradigm for a fashion retailer is illustrated in a fictional case.