In 1999, American authors Joseph Pine II and James Gilmore published the now famous The Experience Economy: Work is Theatre & Every Business a Stage. In it, Pine and Gilmore advocated for businesses to see themselves as selling an experience: by using their services and/or goods to create memorable events behind their products (if any). They observed that consumers’ memories of the experiences they had patronising that business transcended the tangibility and fungibility of a product. No matter how well made or extravagant, products are mass-produced, can be sold, or exchanged depending on what it is, and in some cases may not even stand the test of time (the notion of planned obsolescence comes to mind here). Even if it’s well made, the novelty of a shiny new thing in one’s life fades eventually. Chances are, we’ve all been in a similar situation – the feeling of purchasing a brand-new phone or bag eventually dissipates, and it becomes just another daily tool in our lives.
Experiences, embedded into our collection of memories we have of our lives – are not as fleeting as products sometimes are. As such, global trends indicate people’s growing desire for memorable experiences. Millions may go to theme parks every year, but for each person, their time spent engaging in its services and products is specific to the individual. Disney, for instance, trains its actors playing its many beloved characters and even those manning themed attractions to make their scripts their own! Not limited to theme parks, the Millennial generation has been observed as willing to pay for quality trips with individualised, tailored experiences over buying legacy assets like cars or homes. Research has also indicated that they prefer to stay in an Airbnb over a hotel, as the experiences generated from living in another’s house would be more special than an established hotel chain.
As such, the events and/or experiences that surround the products we buy or services we patronise always have some impact on us, regardless of how fleeting. Even though the term “experience economy” was coined at the start of the 21st century, it has always played a role in shaping businesses and their customers. The fact that people have personal preferences and memories of brands, products, and stores indicate that there is a degree of an experience economy no matter what business it is.
Take a business model as mundane as a convenience store. Some may prefer to patronise individually-owned ones, though even large chains can cultivate unique experiences. Successful in standing out amidst the highly competitive convenience store market in the United States, Texas-based chain Buc-ee’s has established a cult following. It claims to have the biggest convenient stores in the world, as they all function as petrol stations and rest stops, and its distinct logo of a beaver wearing a red cap is unmistakable. Alongside the usual items that convenience stores sell, huge lines of freshly-made treats as well as full meals can always be found in all their chains. Best known for its clean bathrooms and many fuelling positions, there’s a saying in Texas that going to a Buc-ee’s is an experience in and of itself!
A completely different form of business than a convenience store chain, Chinese hot pot restaurant chain Haidilao has cultivated unique experiences for its diners. Within its Singaporean outlets, its specialty services before and during meals sets it apart from its many competitors in the local F&B scene, with competition amongst hot pot chains being particularly fierce – evident in the fact that, as a society of foodies, every Singaporean seems to have an opinion on their favourite hot pot restaurant. However, as a community that also loves freebies, Haidilao’s many free services it offers is an unmatched experience, and one that Singaporeans can resonate with. From free manicures to free tempered glass protectors for your smartphones – Haidilao’s unorthodox way of attracting customers has allowed it to occupy a distinct place within the hot pot industry in Singapore. It even offers Sudoku puzzles that can earn diners free dishes, and its famous “dancing noodle” men at its outlets helped to make it a household name in Singapore.
Whether it’s perusing a convenience store or having a scrumptious hot pot meal, businesses must pay mind to aspects of the experience economy that are specific to them. Human nature ensures that experiences, no matter how mundane or insignificant they may be – play a part in our decision-making. In the world of business, unique experiences help set them apart from the likely oversaturated markets they operate in. That’s why agencies such as Experience Matters have and will continue to harness the power of experiences to enhance clients’ events.