From redesign to revenue: Measuring the effects of servicescape remodeling on customer lifetime value

Abstract

Experiential marketing presents two primary concerns: an imbalance in research where the consumer perspective receives more attention than the organizational one and challenges in effectively measuring experiential strategies. This research addresses these concerns by evaluating retail servicescape remodeling using the concept of customer lifetime value (CLV). A quasi-experimental methodology was used to compare the effects of the remodeled servicescape between a treatment group and a control group in hedonic and utilitarian retail contexts. Our results show significant differences between the two types of contexts in terms of average basket, purchase frequency, churn, and CLV. This research provides valuable insights for retail organizations seeking to measure the impact of experiential strategies on their customers in various types of contexts.