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Putting The Experience Back In Customer Experience

August 3, 2016

Putting The Experience Back In Customer Experience

Recently I attended the Customer Engagement and Loyalty Conference. As I listened to the different speakers I noticed a key theme emerging – the need for loyalty programs to offer experiential rewards. This sits within the wider trend of consumers seeking experiences rather than products or things. While this shift is becoming apparent across most generations, Millennials are the ones driving the growth of this new ‘experience economy’. As products become more disposable and easily purchased than ever before, acquiring ‘stuff’ no longer provides the same satisfaction (or exclusivity) that it once did. As descendants of the mortgage-laden Baby Boomer generation who often overspent on material possessions, Millennials are instead seeking out new memory-making (and sharing) experiences. After all, what’s better to share, and brag about, on your social media – a picture of your new possession? Or pictures and videos of you and your friends enjoying a concert, going bungee jumping or attending an exclusive event?

A US survey(1) found that over three quarters of Millennials would choose to spend their money on a desirable experience or event rather than purchasing something they desire. As we become completely immersed in a world surrounded by the broadcasts of others’ enviable experiences, FOMO (fear of missing out) begins to influence behaviour. Not content to scroll through the seemingly amazing experiences that their peers are having, Millennials are driven to create their own shareworthy experiences.

This shift may seem daunting to those in the business of selling ‘things’. However, creating a customer experience does not necessarily have to be about travel, festivals or crazy food trends; ultimately, consumers are looking for something they can interact with, share with others, and feel a part of. To start with the basics, this can include personalised emails including sneak peeks or exclusive offers, with VIP shopper nights and promotions offering a way to tap into the demand for exclusivity and events. Even small cost-free actions such as encouraging consumers to use a created hashtag to share pictures of themselves using their new purchase (e.g. Working out in their new activewear) can help create a sense of connectivity and position your product as an experience provider.

Finally, returning to consumer loyalty programs, experiential rewards can help to strengthen consumers’ emotional connection to the brand. While a consumer may be pleased when they’ve eventually accumulated enough rewards points for a new toaster, it’s likely that providing a football fan with backroom access on game night is going to be much more desirable. It will also likely produce a stronger emotional reaction, a measure that is associated with higher favourability towards a brand. In addition, the pleased footy fan is more likely to provide valuable word of mouth advertising and social media sharing than is the owner of a shiny new toaster.

So don’t worry, you don’t need to install a bungee line or create the next viral craze in your business, just think about how you can put the ‘experience’ back into customer experience to create memorable moments that will soon be giving others FOMO.

Written by Jackie

  1. Eventbrite (conducted by Harris Poll). Millennials: Fueling the Experience Economy, 2014

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