In the experience economy, customers prioritize experience over the ownership of things. Learn how today’s companies are creating engaging and immersive experiences to add more value and build brand loyalty.
Today’s consumers are increasingly seeking engaging, immersive experiences over material goods. Seventy-five percent of millennials report that they value experiences over things.
This trend means brands that want to stay competitive must focus on creating memorable experiences for their customers.
In a 1998 Harvard Business Review article, Joseph Pine and James Gilmore coined the term “experience economy” and used kids’ birthday cakes as an example of how this trend has developed.
Parents used to buy ingredients and make their child's birthday cake from scratch. Then came boxed cake mixes and Betty Crocker frosting to make the prep experience easier and more fun. After that, busy parents had the option of ordering a pre-made cake from their local bakery or local store (at a far higher price than making a cake at home).
These days, many parents will outsource the entire birthday party, creating an “experience” for the birthday kid and their guests on the big day.
Brands of the future will need to evolve because providing a good product or service is no longer enough. Companies need to provide immersive experiences, as well.
Employee experiences are also critical since they are often intertwined with creating a great customer experience.
5 Examples of Companies That Provide Outstanding Customer Experiences
Here are a few great examples of what the experience economy looks like in practice. These companies are answering the question, "Why would people visit my store or engage with my brand?” by providing engaging, enticing in-person experiences.
John Lewis lets customers have a store to themselves for an exclusive private shopping session for a mere ￡10,000.
The Gucci Garden in Florence, Italy, is a multilevel galleria in a 14th-century palazzo. It includes a retail space, a restaurant by a Michelin-starred chef, a 30-seat cinema, and vintage Gucci displays. The whole experience is so impressive that Gucci charges people approximately 8 euros to enter the two upper floors (the ground floor retail space is available to the public free of charge).
Formula E Ghost Racing is a mobile game that allows players to race against the ABB FIA Formula E Championship drivers in real-time, using innovative telemetry technology and Virtually Live. The game matches the same speed, positioning, and movement of the drivers on the track.
Airbnb now allows hosts to offer immersive local activities like cooking classes, guided tours, or yoga classes.
At Amazon Go stores, you can skip the checkout line! Customers choose the items they want, and Amazon automatically charges their account, creating a seamless, delightful customer experience that lets them skip the hassle of standing in line and dealing with digging out their wallet to pay.