From Possessions to Experiences: The Shifting Paradigm of Customer Value.
Most parents do not take their kids to Walt Disney World only for the venue itself but rather to make the shared experience part of everyday family conversations for months, or years, afterwards.
The same stands for various experiential retail stores and branded content today.
In today’s world, customers are placing increasing importance on experiences rather than material possessions. This shift in mindset has significant implications for luxury brands and their marketing strategies. It is no longer enough to simply offer a high-quality product or service; brands must go beyond and create memorable and engaging experiences for their customers.
Welcome to my series on “Experiential & Transformational Content.” In my last article, I introduced the concept of “Experiential Content in the Age of Experience Economy”.
In this article, we will explore “why experiences are becoming more important for customers and why brands should focus on incorporating experiential content into their marketing efforts”.
Customers today value — “Doing more than Having”
Research conducted by Cornell psychology professors Travis Carter and Thomas Gilovich has shown that buying experiences bring people greater happiness and a sense of well-being than purchasing material goods. The value of experiences lies in their intangible nature, as they leave a lasting impact on individuals long after the experience has ended. In fact, recent economic research summarized by the Economist suggests that people find greater happiness in “experiences” rather than “commodities” and prefer “doing” over “having.”
No two individuals can have the same experience… and that’s what makes it so personal and unique.
Companies that recognize the value of experiences are intentionally designing their offerings to engage individuals on a deeper level. These experience staggers use services as a stage and goods as props to create unique and personalized experiences for their customers. Unlike commodities or goods, experiences are inherently personal and occur within the individual. Each person’s experience is shaped by their emotional, physical, intellectual, and spiritual interactions with the staged event. This personalization and uniqueness make experiences highly valued by consumers.
Experiences — not only a key to capturing your customer’s hearts but also their share of the wallet
Creating experiences allows companies to offer something beyond goods or services alone. By providing rich sensations and engaging the customer’s senses, brands can create memories and emotions that resonate long after the experience. This captures not only the customer’s heart but also their wallet, as they are willing to spend their hard-earned money and precious time on these highly valued experiences.
Brands that stage experiences can command higher prices for their offerings because consumers perceive experiences as more valuable and are willing to pay for them. Consider the difference between attending a regular yoga class in a studio versus a yoga class on a yacht while sailing through scenic waters during sunrise. The latter would undoubtedly be more expensive because it offers a unique and immersive experience.
A shift in perspective is needed — brands please do make a note!
To capitalize on the growing importance of experiences, brands need to adopt a shift in perspective. Rather than solely focusing on the mechanics of the product itself, attention should be directed towards how individuals experience and interact with the product. This user-centric approach allows brands to create meaningful and enriching experiences that differentiate them from competitors. Luxury hotels, for example, are no longer just offering luxurious stays but are curating exclusive and culturally immersive local experiences that are unique to their brand.
In my next article — I will speak about different ways in which brands can create experiences for their customers. This is going to be interesting & fun!
So stay tuned & keep creating!
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