{"id":15068,"date":"2018-06-19T18:09:11","date_gmt":"2018-06-19T16:09:11","guid":{"rendered":"https:\/\/mention.com\/blog\/?p=15068"},"modified":"2018-06-19T18:09:11","modified_gmt":"2018-06-19T16:09:11","slug":"experience-economy","status":"publish","type":"post","link":"https:\/\/mention.com\/en\/blog\/experience-economy\/","title":{"rendered":"The Experience Economy: How to Make Your Business Stand Out"},"content":{"rendered":"

Imagine this: I\u2019m looking to buy a cupcake for dessert and I find myself standing in front of two bakeries both of which sell quality products.
\nThe first bakery is a plain store with cupcakes lined up behind a small shelf. Its prices are the cheapest on the street. Customers line up, pay for their cupcake and leave.
\nThe second bakery is much more expensive<\/strong>. It\u2019s decorated in colorful colors. Music is playing and small tables are set up around the room in case you want to enjoy the cupcake right there. There\u2019s even a hashtag on the wall, in case you want to share a photo of your sweet purchase with the world.
\nWhich would you pick?
\nYou might immediately say, \u201cthe first one, of course!\u201d After all, it tastes as good as the cupcakes in the second store and <\/em>it\u2019s cheaper. But research shows that more people will, in fact, pick the second store<\/a>.
\nThis is the experience economy<\/strong>.<\/p>\n

Whose Fault Is This Anyway?<\/h2>\n

The term has been around for a while. Since 1998, in fact, when it was coined by B. Joseph Pine II and James H. Gilmore in their book on the same topic. It basically highlights the fact that consumer purchasing is nowadays more influenced by the experiences<\/a> provided by the brand<\/strong>, not just the product itself.
\nThe experience economy came about through a perfect storm. Today, millennials form the largest purchasing group<\/strong>, and are consequently targeted by nearly every business. But millennials are also plagued with job insecurity and soaring housing prices around the world, which means most of them have no hope of ever owning their own place.
\nInstead, more and more young adults are spending their hard earned money on experiences rather than putting it away towards houses they likely cannot afford.
\nSocial media has been a big help too. With watching so many people, and being watched in return, there\u2019s a fear of missing out (helpfully called FOMO<\/a>)<\/strong>, which encourages people to show that they are having the same unique experiences as their friends.<\/p>\n

Resurrecting Businesses With Experiences<\/h2>\n

Nowadays, businesses are investing in experiences\u2019 as much as possible. And, for some, it seems to be working. Bookstores have been hard hit by the spread of technology and resulting spread of distractions. It\u2019s forced some of them to use innovative experiences to draw customers in and keep them around.
\nOne of these is The Last Bookstore in Los Angeles, which has turned book shopping into an experience. The entire store is a bibliophile\u2019s fantasy, with book tunnels and book displays suspended from the ceilings<\/strong>.
\nThe store also has spaces for book or theatre events and even a gallery for an arts collective. Not surprisingly, the store is incredibly popular<\/a>, and despite the dozens of independent bookstore closures in the US, it\u2019s had to expand its space since opening.
\n\"experience
\nImage credit: The Last Bookstore<\/a>
\nJapanese maid cafes are another example of adapting the experience economy to your advantage. These cafes first opened in 2001, and have grown in popularity since. Food served in the cafes isn\u2019t particularly special, but the experience is aimed at anime-lovers, with servers dressed in frilly maid outfits and acting like the bubbly anime characters<\/strong> that have become so popular with fans.
\n\"cafe
\nImage credit: Maid Cafe Mia Cafe Tokyo<\/a>
\nLarger brands have\u00a0also\u00a0started investing more in the experience economy. McDonalds has a number of restaurants<\/a>\u00a0around the world featuring unique designs like beautiful architecture, expensive-looking interiors and exclusive food offerings at some sites, like its three course Valentine\u2019s Day meal<\/a>\u00a0in Newcastle, England.
\nSamsung has also opened several experience stores in North America, including a huge flagship location in Toronto, Canada. These stores aren\u2019t so much for you to purchase Samsung products, but more for the consumer to appreciate<\/a> them.
\n\"Samsung1\"
\nImage credit: Samsung<\/a><\/p>\n

Big Changes For Your Small Business<\/h3>\n

If you\u2019re a small business owner, your first instinct might be to despair. Large brands have more capital to spend on experiences, which is true. But large brands also have a harder time making meaningful connections with their customers<\/strong>, which is where you have the advantage. Turning your interactions with customers into meaningful experiences isn\u2019t at all difficult.
\nYour business shouldn\u2019t just sell products but also emotions. You can do this through sensory and experiential cues.
\nWhat\u2019s the first thing you want your customers to see when they enter?
\nWhat sort of personality should your staff have to set the mood of the store?
\nHelpful and polite? Or exuberant and friendly?
\nIf none of your products were in the store, what could you do to keep your customers coming back? These questions apply regardless of whether you have a tradition brick-and-mortar store or an e-commerce business.
\nAsking these questions will likely make you realize that you could be doing a lot more to give your customers the experience they deserve<\/strong>. And there\u2019s no excuse for ignoring this fact. The 2010s are an age of curated memories. So if your business isn\u2019t providing experiences, then really, what are you doing?
\nBusiness is swiftly changing and depending on how you see it, it might be a good thing.
\nNowadays, everyone\u2019s an actor. And your business is a stage. So you\u2019d better put on a good show.
\n\"New<\/a><\/span>