Sure, we all appreciate a great product. But what is it that truly excites us and makes us think ‘wow!’? Is it the product itself or the feeling we get when we first hold it? Is it ‘the thing’ or is it our personal experience of ‘the thing’?
Research is showing that, more and more, what matters to consumers is the experience. In fact, 86% of consumers questioned in one survey quoted in Forbes said they would be willing to pay more if they received a great customer experience (rising to 90% in another survey). Are you in that majority? It’s suggested by PWC that, on average, people would pay 16% more for a coffee that came with a great customer experience. Or 10% more for an airline ticket.
So the customer experience matters, sometimes even more than the price a customer pays. Welcome to the Experience Economy, where there is value in the feeling we get when we pay for something.
The notion has been around for decades, but was perhaps best articulated at the turn of this century in a book by B. Joseph Pine II and James H. Gilmore, who coined the term Experience Economy. Its power as a commercial argument is on the rise, especially in highly competitive markets.
So what is it and how can it benefit you? Let’s take a look.