- The rapid rise in growth of the experience economy
- What an ‘experience platform’ is and why you should care
- How data can support the best creative ideas to help make them more effective
Thanks to tech we, as consumers, are spoilt for choice and ease. You can order almost anything online and receive it the next day – if not within hours. It’s easier than ever to spend money, however, the rise and rise of the experience economy has meant that we’re spending less on goods and more on experiences. In fact, over the past few years, consumption expenditures on experiences have grown nearly four times faster than expenditure on goods.
The experience economy is expected to be worth $12 billion by 2023 and with 78% of millennials choosing to spend money on an experience, it’s clear the value of experiences has taken precedence.
Experience is something that brands have been tapping into for some time now, using it to build brand awareness and create brand advocates. We believe there’s a real opportunity for brands to build on through creating richer, more immersive experience platforms that can exist in the long-term. Adopting a more pioneering attitude and developing an experience platform allows brands to create an additional revenue stream, while telling their story and improving affiliation by engaging people at every touchpoint.
Experience platforms: a brief overview
Simultaneous to the experience revolution, consumers have made it clear that traditional advertising no longer gives them what they want. Pushy and invasive messaging doesn’t hit the spot, and tired, overwhelmed consumers are switching off or blocking advertising altogether. But there is another way for brands, a way to create lasting impressions and build relationships with consumers, and that is through experiences.
Consider the distance brand experience that has come in the past five years. It’s impressive. We’ve reached the point where it’s no longer a marketing bolt-on, but a crucial part of brand strategies.
One of the best-known examples is Airbnb. The brand moved from being an accommodation provider to a global holistic travel experience platform, offering access and immersion to exclusive local activities and so much more. The brand has benefitted in terms of positioning and is now a global household name, not to mention its multi-billion-dollar valuation.
On a different scale take The House of Peroni. The effortlessly immersive activation in London earlier this year showcased fashion collaborators alongside some of the world’s premier mixologists. The experience platform engaged all the senses, making it a stand-out experience. Activations like this help increase loyalty, engagement and offer added value for the brand leading it, but they also bring ancillary revenue streams.
Facing the future of experience together
Succeeding in this space means breaking new ground, innovating and evolving. We at Avantgarde have more experience than most in this space. 30 years of heritage pioneering brand experience has taught us what’s needed to continue to push the boundaries of storytelling through experience.
The role of tech and the importance of data
When it comes to the reality of experience platforms, digital plays an important role, so when incorporated in a way that enhances the brand story it’s a vital part of immersing visitors and creating brand fans. But how do you make it as effective as possible? Data. Data from these platforms hold the potential to shed light on insights, helping brands better understand their customers, retarget and build improved experiences in the future. Data is so important, and when used in the right way it can support the best creative ideas to help make them more effective. We gather it to demonstrate ROI and help clients improve future experiences and retargeting, we know the value digital tools such as Salesforce Marketing Cloud and Google Analytics play in helping seamlessly connect with the client’s databases. Further to this, we’ve developed an in-house platform that engages people and collect relevant experiential data. Understanding and anticipating customer behavior in order to help avoid consumers having a poor customer experience is key. Through this approach, brands can not only create awareness but also boost the image, loyalty, and PR for the brand.
The growth of the experience economy is a huge opportunity for brands. If executed via a collaborative, forward-thinking partnership, brands who invest in pioneering experience platforms are able to not only meet and exceed consumer expectations, immersing them in brand narrative, they take it one step further by establishing something more permanent. These experience platforms will help brands leave a lasting impression on audiences, resonating more deeply, creating life-long fans who want to invest their time and money in the experience. The best part is that they’ll get better as time goes on thanks to effective data analysis.
- The Experience Economy Frontier and the Opportunity for Brands - December 6, 2019