What Is Experience Economy?

What Is Experience Economy?

Experience economy, a term that was first used over 20 years ago, is on the rise. But what exactly do we mean when we say “experience”? The word “experience” has numerous definitions but it generally refers to a particular instance or a process of observing, undergoing, encountering something. But coined as experience economy, the term takes on a wider and deeper meaning. So what do we mean by experience economy?

In today’s world, experience economy focuses on the connection built between you and the product or service you purchase and the perception that results from your engagement with it. To clarify with a simpler example, let’s remember the industrial revolution and the following technological revolution. We all know how the business processes and software that came with the technological revolution continue to make way for multitude of next generation products. But if production has become so easy, why do we still struggle with bringing a product or service to market and selling it? Experience economy proposes that in the future, making a strong product will not be enough and you will need to provide a good experience end to end.

The economy of the future calls for good experiences

In experience economy, a good product, service, hardware or software in and of itself is not enough to ensure a good sale, presentation or to create demand. What will make this possible is a real experience that extends from the presentation offered to the consumer before a purchase to the spontaneous atmosphere created in the buying process and the dialogue with a company representative that the customer contacts to communicate a problem or satisfaction. And the economy of the future will consist of more than production, requiring presentation before a good purchase, as well as good communication, good marketing and good customer relations management. The fact that we as consumers are also a part of the experience economy confirms this point. For instance, in the process of buying smart phones, which have become an essential part of our lives, we consider several features such as the power of their operating systems, the convenience of their software or the app capacity they can take, wanting to make sure that we are paying for a perfect experience. And that is not all because we also review the experience and even post or blog about it. This is why satisfaction and a good experience come to the forefront as two key factors that will grow the economy. It appears that companies that adapt to experience economy will most likely form the cornerstones of the economy of the future, especially from 2020 onward.

Some tips for a seamless experience

* Know your customers and understand their needs well.

* Avoid ambiguous, complicated processes.

* Prefer the type of communication to make your customers feel special.

* Stay relevant and enhance the experience you offer with new technologies and smart solutions.

* Appeal to emotions and remember the importance of building a connection.

* Take customer feedback into consideration across all processes from buying to complaints.