Experience economy

We can’t deny the fact that over recent decades, the psychology of consumption has changed. There’s a new link in the «materials-products-services» chain — «experiences». We prefer to watch a new film in a cinema; we don’t just dine in restaurants, we also enjoy the atmosphere, view, service, and hospitality; and we cross thousands of kilometers to discover new countries. It’s not enough anymore to watch a movie at home, or learn about new cultures from Wikipedia. We have to see everything with our own eyes, and experience fantastic emotions.

A business that’s aware of the principles of this new economy focuses on a new value — experiences. They are what drives competition, and what gives an advantage on the market. An experience can be a product of its own, or represent an added value. For example, Guests love it when making cotton candy or ice cream becomes a vibrant show, or when you present them with a personalized bottle of wine dated by their year of birth.

The terms that describe this approach are retailtainment and experience economy. Customers are willing to pay more if they feel satisfied after the purchase. Brands that can make their products creative and impressive are in the lead nowadays.

Think about it: what was your brightest experience this year or last? And how much did you pay for it?