Service Innovation of Physical Bookstores: Applying Service Design Perspectives to Develop Service Innovation to Enhance Customer Loyalty

The diversified applications of the Internet have caused the knowledge economy to flourish. Physical bookstores must not only meet the changing needs of readers in the digital age, but also compete with the convenience and low price discounts of online shopping. This research is based on the theory of service innovation thinking and customer loyalty. Through the service design methods, it explores the customer journey in the bookstore and after purchasing the goods, proposes the possibility of improving the service design through multi-channels, and examines whether service innovation can help increase customer loyalty. The objectives of this research are (1) understand bookstore customers’ satisfaction with membership and the challenges they face through questionnaires and interviews; (2) analyze the needs and pain points of stakeholders in their respective journeys; (3) through service design thinking, examine whether the design concepts help increase customer loyalty. The research results are (1) through service design thinking, the design concepts proposed according to persona help to improve two of the indicators of customer loyalty, namely personal attitude and repurchase behavior; (2) providing services to meet the individual needs of stakeholders in the bookstore retail scenario, that is, improving the work efficiency for bookstore clerks, while increasing the convenience of buying books for customers. The results of this research put forward the service direction and suggestions of future bookstores, and look forward to creating an innovative book retail experience.