Unleashing the digital building bricks: A smart service taxonomy for retail

Abstract

The increasing online competition, associated changes in customer behaviors, and effects of the pandemic in recent years have led to increasing retail store closures. This development has given rise to a downward spiral in terms of a decreasing attractiveness of local shopping places and a further reduction of stores. Research has recognized that smart services can unleash the potential to compensate for the competitive disadvantages of physical retailers by combining tailored physical and digital offerings to enhance customer-oriented value creation. However, most approaches are limited to in-store services without addressing the wider shopping experience in retail surroundings. Therefore, this paper provides a classification framework for smart services in retail evaluated against 163 use cases, as well as six service archetypes. This work contributes to understanding relevant service design elements and proposes applying the idea of a holistic customer experience to service design in physical retail environments.