Branded 3rd Space?
A call for commercial environments to recognise the need for and potential in 3rd spaces.
The Future of Third Places:
Designing for Connection, Community, and Brand Loyalty
As experience designers, we have a unique opportunity to shape the spaces that play a crucial role in people's lives. Third places—the communal spaces that bridge the gap between home and work—are more than just locations for social interaction. They serve as the backdrop for important life transitions, from single to partnered life, from education to professional careers.
These milestones often coincide with significant shifts in consumer behavior, making third places not only socially important but also commercially relevant. The renowned sociologist Ray Oldenburg emphasized the importance of third places in fostering a healthy, engaged, and socially connected society.
However, the increasing commercialization of these spaces by corporate interests threatens to undermine their vital role. As designers, it's our responsibility to find ways to create third places that serve both community needs and business objectives.
The Consequences of Diminishing Third Places The erosion of third places can have far-reaching consequences, not just for individuals but also for the businesses that rely on them as consumers.
When these spaces become less accessible or less conducive to social interaction, it can disrupt the natural life cycles that drive consumer behavior. Consider the impact on younger generations. With fewer third places to congregate and form relationships, important milestones like partnership and family formation may be delayed. This, in turn, can alter economic behaviors such as home purchasing, vehicle acquisition, and child-related spending. A report by the Urban Institute highlights a noticeable delay in homeownership among young adults, partly attributed to reduced opportunities for social interaction. Moreover, the lack of social connection can take a toll on mental health.
Numerous studies have linked social isolation to increased rates of depression, anxiety, and other psychological issues. This not only affects individuals' well-being but can also translate into reduced economic activity and consumer spending. The Business Case for Investing in Third Places While the societal benefits of third places are evident, the commercial incentives may be less apparent at first glance. However, there is a strong business case for brands to invest in creating and preserving these spaces. First and foremost, brands that contribute to the community can see a significant boost in customer loyalty.
A Harvard Business Review study found that customers who perceive a brand's corporate social responsibility positively are 47% more likely to be loyal to that brand. By creating third places that genuinely serve community needs, brands can foster deep emotional connections with their customers.
Moreover, by facilitating social interaction and supporting important life transitions, brands can help ensure a robust consumer base for the future. Investing in spaces that promote public health and well-being, such as community sports facilities or public gardens, can contribute to a healthier, more engaged population. The World Health Organization estimates that such investments could save $100 billion annually in global healthcare costs.
The Business Case for Investing in Community
But it doesn't have to be this way. As experience designers, we have the opportunity to create third places that serve both community needs and business objectives. By designing spaces that foster inclusivity, social interaction, and community well-being, we can contribute to a healthier, more connected society while also driving brand loyalty and long-term commercial success.
The business case for investing in third places is clear. Research has shown that customers who perceive a brand's corporate social responsibility positively are more likely to be loyal to that brand. By creating spaces that genuinely serve community needs, brands can foster deep emotional connections with their customers, driving repeat business and positive word-of-mouth.
Moreover, by supporting the social fabric of communities, brands can ensure a thriving customer base for the future. Investing in spaces that promote public health and well-being, such as community sports facilities or public gardens, can contribute to a healthier, more engaged population—one that is more likely to participate in the economy over the long term.
Designing for In-Group Specificity
But to truly make an impact, we need to go beyond generic solutions and design for the specific needs and desires of the communities we serve. This is where the concept of in-group specificity comes into play.
By tailoring third places to the unique interests, values, and cultures of specific communities, we can create spaces that resonate on a profound level. Consider a skincare brand aimed at teenage girls. Rather than simply offering a retail experience, the brand could create a space that facilitates connection and self-expression, such as makeover parties or collaborative beauty workshops.
Similarly, a hotel in an inner-city neighborhood could differentiate itself by catering to the interests of the local community, such as creating a hub for the skateboarding scene, complete with an in-house skate shop, events, and a dedicated skate park.
The key is to immerse ourselves in the communities we seek to serve, co-creating with their members to ensure that the spaces we design truly reflect their needs and aspirations. By incorporating local art, music, and design elements, providing unique experiences, and fostering a sense of ownership, we can create third places that become integral parts of the community fabric.
Industry Trends and Success Stories
This approach is already proving successful for brands that have embraced it. Nike's Live concept stores, for example, are tailored to the specific needs of local communities, with curated product assortments, community events, and personalized services. The result? Increased foot traffic, double-digit sales growth, and a deep sense of customer loyalty.
Similarly, Rapha's network of cycling clubhouses has become a global hub for the cycling community, offering a range of experiences tailored to cyclists' interests. With over 12,000 members worldwide, these spaces have fostered a deep sense of engagement and community interaction.
And then there's the Lego House in Denmark, a 12,000-square-meter experience center designed to celebrate the creativity and imagination of Lego fans. With a range of interactive exhibits, play areas, and building zones tailored to different age groups and interests, the space has attracted over 280,000 visitors in its first year, with 95% of visitors rating their experience as "excellent" or "very good."
The Future of Third Places
These examples demonstrate the power of creating third places that cater to specific in-groups. By designing spaces that deeply resonate with the needs and desires of particular communities, brands can drive engagement, loyalty, and commercial success.
As experience designers, we have the opportunity to lead this trend by creating third places that are tailored to the unique interests and values of the communities they serve. By immersing ourselves in these communities, co-creating with their members, and designing spaces that reflect their aesthetic and experiential preferences, we can create third places that deliver profound social and commercial value.
But we must also recognize that this is not just about creating one-off experiences or temporary activations. To truly make a difference, we need to design third places that are sustainable, accessible, and integrated into the fabric of everyday life.
This means thinking beyond the boundaries of traditional retail or hospitality spaces and considering how we can create third places in unexpected locations, such as public parks, libraries, or even virtual spaces. It means partnering with local organizations, policymakers, and community leaders to ensure that these spaces are truly serving the needs of the people they are intended for.
Ultimately, the future of third places lies in our ability to design for connection, community, and brand loyalty. By creating spaces that foster authentic relationships, celebrate diversity, and support the well-being of individuals and communities, we can help shape a world that is more inclusive, more connected, and more resilient.
Conclusion
The decline of third places due to corporate interests poses significant challenges for social bonding, mental health, and long-term consumer engagement. As experience designers, we have the opportunity to create spaces that address these challenges while also driving business objectives. By designing third places that foster inclusivity, social interaction, and community well-being, we can contribute to a healthier, more connected society. At the same time, we can help brands cultivate deep emotional connections with their customers, driving loyalty and long-term commercial success. The business case for investing in third places is clear. By supporting the social fabric of communities, brands can ensure a thriving customer base for the future. Moreover, by aligning their values with the needs of the community, brands can differentiate themselves in an increasingly competitive marketplace. As experience designers, we have the power to shape the spaces that define people's lives. By prioritizing the creation of meaningful third places, we can make a lasting impact on both society and the bottom line. It's an opportunity to demonstrate the true value of design thinking and to create a win-win scenario for businesses and communities alike. So let's rise to the challenge and design third places that inspire connection, foster well-being, and drive prosperity for all. The future of our communities—and the brands that serve them—depends on it.
Case Studies and Industry Trends:
The Rise of Community-Centric Retail: A growing number of retailers are experimenting with community-centric store formats that prioritize social interaction and experiences over traditional shopping. For example, the clothing brand Patagonia has launched "Patagonia Action Works," a program that connects customers with local environmental organizations and hosts events and workshops in its stores. Similarly, the beauty brand Glossier has created experiential pop-up shops that feature communal spaces for customers to gather and socialize.
The Resurgence of Public Markets: Public markets, which combine fresh food vendors with community gathering spaces, are experiencing a resurgence in cities around the world. These markets serve as vibrant third places that promote social interaction, support local businesses, and enhance community well-being. For example, the Reading Terminal Market in Philadelphia, which dates back to 1893, attracts over 6 million visitors annually and is credited with driving the revitalization of the surrounding neighborhood.
The Impact of Co-Working Spaces: The rise of co-working spaces demonstrates the growing demand for third places that blend work and social interaction. Companies like WeWork and Impact Hub have created vibrant communities of entrepreneurs, freelancers, and remote workers who value the opportunity to connect and collaborate in shared spaces. Research has shown that members of co-working spaces report higher levels of job satisfaction, productivity, and social connection compared to traditional office workers.
Key Performance Indicators (KPIs):
Foot Traffic: Measuring the number of visitors to a third place can provide insight into its popularity and community impact. For example, the Ponce City Market in Atlanta, a mixed-use development featuring retail, dining, and community spaces, attracts over 7 million visitors annually.
Dwell Time: Tracking the amount of time visitors spend in a third place can indicate its success in fostering social interaction and community building. The Third Place Cafe in Raleigh, North Carolina, reports an average dwell time of 45 minutes per customer, suggesting a high level of engagement and socialization.
Customer Loyalty: Assessing the repeat visitation and customer loyalty rates of a third place can demonstrate its impact on brand perception and long-term business success. The outdoor retailer REI has found that customers who participate in its in-store events and workshops are 40% more likely to make a purchase and have a higher lifetime value compared to non-participants.
Community Engagement: Measuring the level of community engagement and participation in events and programs hosted by a third place can indicate its social impact. The Lululemon Athletica store in Toronto's Queen West neighborhood hosts regular yoga classes and wellness workshops that attract hundreds of participants each week, fostering a strong sense of community and brand loyalty.
By leveraging these industry trends and tracking relevant KPIs, experience designers can create third places that deliver measurable social and commercial value. As the demand for community-centric spaces continues to grow, brands that invest in creating meaningful third places will be well-positioned to thrive in the years ahead.
