Impact of Experience Economy on your business
About Experience Economy
The past was about Industrial Economy, The present is Service Economy & the Future will be all about “Experience Economy”. Let’s understand from an example of CAKE & Birthday Party:
- In the industrial economy, we used to make CAKE at home & celebrate.
- In the service economy, we used to order it from nearby bakery stores.
Now, we spend higher but outsource the entire event to some other business that stages a memorable event for the kids—and often gives the cake for free. This implies what the experience economy is from a business perspective.
Welcome to the new world of “Experience Economy”
Today, we can easily identify that consumers unquestionably desire experiences, and more and more businesses are responding to that. Experiences have emerged as the next step for Economic progression & next competitive advantage. In today’s time, many organizations simply put experiences around their traditional offerings to sell more.
To realize the full benefit of staging experiences, businesses must understand first about design & selling experiences instead of selling services.
A simple taxi ride in an early period taxi which took you from one place to another is a service ON-TIME was generally considered as good. However, what if the same taxi driver helps you reach ON TIME and plays some great music, serves food, helps you to understand about places & culture during the ride..?
This is all about selling experiences along with services.
Experience management at a glance: Engaging Passengers turned “an ordinary cab ride into a memorable event”
As seen in the previous case, now experiences are not only about entertaining customers but try & engage with customers in a personal, memorable way. In the experience economy, the memories, emotions and feelings that customers take away are ultimately what matters most. Products and services are copied by competitors and lose their differentiation and value.
The shift toward digital business can be seen as largely being about creating new business models and innovations that allow companies to alter their products and services through information and digital technologies. Not only must digital be a building block of CX (customer experience), it must also be foundational to your EX (employee experience).
The experience economy is what we are in the midst of now and it continues to change rapidly, driven by generational, economic, cultural and societal change. Today the concept of selling experiences is spreading beyond Consumer industries like theaters and theme parks etc.
According to trusted sources, 75% of customers admit that they are likely to buy more from brands that know their name, purchase history & can recommend products based on their previous experience.
Also now we quickly need to realize that – “An excellent customer experience lies in Employee Experience & Operational Excellence”.
For this, today large organizations started working on improving many areas like;
- Employee Knowledge
- Employee Skills
- Employee Constant Support
- Employee Recognition & Rewards
- Employee customer focused Approach
Brands are taking more & more initiatives for Employee Engagement & operation excellence for the success of Customer Experience strategy. So now it has been crucial for companies to have Right Technologies, Digital Tools, & Efficient Organizational Processes to analyze customer insights across various channels to create flawless experience. Such a transformation helps organizations to create: A Long term Sustainable Growth & Resilience even during any crisis.
If you want to know more about the experience economy and experience management for your organization, we are just a click away. Book FREE Consultation.