What is the Experience Economy?
A shift occurred in the late 1990’s where people began to find experiences more valuable than material things. This shift changed the economic fabric of traditional commerce as well as consumer desires and expectations.
A 1989 paper published in the Harvard Business Review highlights the change:
“...as goods and services increasingly become commoditized, experiences have emerged as the next step in what [they] call the progression of economic value. From now on, leading-edge companies—whether they sell to consumers or businesses—will find that the next competitive battleground lies in staging experiences.”
This new economy is known now as the Experience Economy.
The Experience Economy Today
The Experience Economy now permeates throughout our daily lives, as best exhibited by the profound lack thereof in 2020.
Before the pandemic, Approximately 80% of millennials reported that they would rather invest in experiences than material things. These numbers point to a radical shift in consumer spending, and it doesn’t just apply to millennials. Many boomers are adopting this philosophy as well as the younger, Gen Z.
We’ve seen so many shifts over the past year—shifts in online shopping, social media habits, entertainment, and food delivery. However, the experience economy lives on. You can find evidence of this through travel companies booking vacations 12 months out, and a vacation-rental service, Airbnb, going public during a pandemic.
The Experience Economy of Tomorrow
After a year of sedentary behavior, not traveling or interacting with coworkers and friends in person, all data points to consumers who are itching for new experiences.
Today’s commerce players who want to thrive “tomorrow” must pay attention to this shift in consumer behavior in order to compete. Understanding how your business, your products or services, and your experiences can change the life of your customer is critical to achieving a lasting relationship that will bring your customer back, again and again.
Lifeogeny is your Gateway Into the Experience Economy
And the best news is, you don’t have to do it alone. At Lifeogeny, we know this year has been exceedingly difficult for business owners. You have enough to pay attention to without having to study consumer behavior. We’ve got your back, and we’ve got strategies to help you bring your customers back, too.
Lifeogeny will work with your business, sharing insights to help you succeed in the Experience Economy. Our desire to provide a supportive communication infrastructure that helps you reach your customers through the mobile marketplace is at the heart of our business.
Of course, we also want to help you amplify the amazing experiences you already offer. Through this partnership, you will be able to establish and manage long-lasting, experience-based relationships all through our easy-to-use app — and we’ll be there to help you along the way.