The Experience Economy is Upon Us – Are You Ready For It?

With the global epidemic, many aspects of daily life have changed indefinitely. While people still have to go to school, work, travel and shop, many of these activities have been transformed into basic ways. As personal activities become more fulfilling, it has already accelerated the ongoing global transition from physical to digital, in all its various forms and repetitions.

This change is mainly seen in the case of trade, which discusses Economy With increasingly synonymous Digital economy. Worldwide, eCommerce app installations increased 10% in 2021 compared to 2020, and sessions increased 12% year-over-year.* And A recent analysis* Predicts that digital and digital-transformed businesses will be an incredible $ 53.3 trillion by 2023, about half of the total gross domestic product in the United States.*

The experience of surpassing consumerism (and the Amazon influence)

For businesses, the biggest impact of this change is the change in consumer expectations, where increasingly, consumers expect that any and all of their needs will be met through a solution that is online and digital.

Amazon can be credited (or blamed) for their role in setting the expectation that meeting all one’s needs should be as simple and convenient as one-click, with close results. And if your business can’t or won’t live up to those expectations, there are definitely a dozen more – just one click or keystroke away – that can do it.

But the transition to digital is driven only by changes in shopping habits and perfection processes. Because A deeper, more inherent human desire for experience and connection beyond our daily needs. The anti-consumer movement has always claimed to exist Experience – such as travel, concerts, plays, sporting events and the like – as a more meaningful and lasting option for purchase Things. And this idea seems to have caught on.

According to CIO Magazine, experience economics is “the fourth great stage of consumer development, following products, products and services.” Although not a mainstream concept in the past, experience economics is a reality of life today, a new abbreviation (CX, which stands for customer experience) and a new priority for business leaders.*

There is information to back this up. In a survey of nearly 2,000 business professionals, for 46% of respondents, customer experience for the next five years was identified as a top priority. The survey further found that 86% of buyers will pay a premium for a better experience. Interestingly, it was also suggested that the customer experience would surpass the product and price as the main brand differentiator.*

The technology behind the experience economy

And let’s not ignore the technological innovations that are driving this transition further into the experience economy. The latest innovations in experimental technology include such things VR / AR device Which tends to get better. And although it is true that the use of this technology is still relatively low (only 1% of customers have VR / AR units)*), The latest frenzy for virtual rooms, submerged art exhibitions, and the latest frenzy to showcase ready to provide backdrop for Instagram photos, will indicate that the experience economy is here to stay.

The economy of experience has also largely been shaped by advances in cloud technology that have become the basis of how IT is accessed and regulated. This means that as the global market and its drivers continue to change and evolve, companies may need to redesign their priorities so that they have the right technology to deliver a seamless and meaningful experience to their customers — efficiently and flawlessly.

Meeting consumer expectations for empirical engagement

But what does eCommerce Rockstar, the digital-marketing guru, the mobile-marketing rain-maker all mean to you? What you need to know about experience economics to meet consumer expectations And Are you sure your company is riding the wave peak?

The first thing to understand is that the way to build loyalty is to do less and more to surprise or delight the customer. Providing them with the kind of experience that they truly value. This requires a concerted effort to create authentic and meaningful touchpoints that will create lasting connections — all done effortlessly.

The human element – as manifested Empathy, Busyness, personalization and ‘immersive-ness’ – often the single biggest difference. This is not surprising because in contrast to a product that is real and distinct from consumers, an experience, by definition, is unique and inseparable from the people who go through it.*

But how does one achieve this potential stranger goal?

Neuroscience Provides some answers. According to Forbes, “Neuromarketing research shows that behavior in general – and consumer behavior in particular – is based on how we feel.” This means that if customers’ emotional experiences and potential really resonate with them, it will affect both the length and quality of your relationship with them.*

There are three aspects to creating such an emotional customer experience:

  • The importance of a positive experience: By taking a long view towards building a positive emotional connection, without a short view towards less meaningful but quick gains, the chances of developing the relationship are much higher. As well, each Lifetime value of the customer There is greater potential for growth in a sustainable way.
  • Designing Path to emotional connection: New customers are less likely to have an emotional connection with your brand. But, by encouraging customers (in your customer journey and other ways) to become more emotionally involved over time, you can maximize the value they bring to your business as they engage with you. According to research firm Matista, “fully emotionally connected customers are on average 52% more valuable than those who are simply highly satisfied.”*
  • Increasing personal connections: This can be done by looking at things from the perspective of your customers and your employees and using this new perspective to redesign your experiences from their perspective. The companies that make it the most successful have done it Emotional connection As part of their core strategy, every function in the value chain পণ্য from product development and customer service to marketing and sales বলা is called upon to work towards this goal.

As the experience economy continues to evolve, companies will try to effectively monetize the customer experience by providing more sophisticated and targeted offers. For every business that wants to succeed in this state, the entire company must acknowledge and work towards creating the kind of customer experience that will resonate and provide economic value and returns.

Experience economics and retail

How will this growing dominance of the experience economy play out in the retail sector?

Of course, physical retail seems to be primed to become more experiential, though According to Kate Trotter, head of trends at retail consultancy Insider Trends, “some people may think it’s not that big.” Still, “Across the board, there are ways for retailers to entertain customers, to educate them, to tell their stories better. It seems that the more you experiment with e-commerce, the higher the sales and the higher the average cost, “he noted.*

Here are some real-world examples of how retail brands add an empirical element to their mix.

  • Scan-to-buy clothing, Where users scan or take photos of themselves, then upload them to a mobile app Online clothing retailer Mtiller says that with this option, they can design clothing that fits better than ready-to-wear in physical stores. And as sizing becomes more accurate, consumers no longer have to order multiple sizes to see which one fits best (and then refund the rest). The company claims that their measurements yielded 20% better results than the sample group that received clothing from a professional tailor. To prove their confidence in their service, the company offers a 90-day “perfect fit” guarantee.
  • Virtual Mirror, Another type of experimental technology that enables consumers to see what they will look like when wearing different clothes. Take the luxurious fashion giant Burberry. This brand is constantly innovating and embracing innovation. They are at the forefront of immersion technology – an umbrella term that incorporates virtual reality (VR), augmented reality (AR) and mixed reality (MR). They offer, for example, an AR shopping tool powered by Google. Using the tool on smartphones, consumers can get an AR experience when searching for selected Burberry products through Google search.*

  • Virtual rooms and avatars, Which enables buyers and sellers to communicate more personally – without the need for a physical store or encounter. One of the companies that enables this is Spot Virtual, which describes itself as the “virtual hub of your organization.” Their virtual environments enable participants, such as buyers and sellers, a more authentic way to meet and connect from any location, including an Internet connection that we all know as conferencing apps. However it is more than a zoom cell. Virtual rooms have virtual walls that can contain virtual photo frames, for example, where vendors can display a variety of items, such as non-fungible tokens (NFTs), artwork, leisure photography – all of which help create conversations, connections and conversions.

Is your retail business suitable for the future?

At CleverTap, we have extensive experience supporting mobile app growth and revenue expansion and an in-depth understanding of some of the most influential strategies and tactics. Acknowledging how e-commerce has exploded over the last few years, we decided to dive deeper to identify and analyze what drives this industry in terms of user engagement, retention and monetization.

Our upcoming report, Suitable for retail futures, Reveals four basic business objectives and individual strategies for engaging with today’s mobile-centric consumers that will help you achieve them. This is the product of a six-month qualitative and quantitative research project derived from our ecommerce benchmark report, as well as campaign data and insights that we have helped to implement across the platform.

This report provides any brand seeking to gain competitive advantage with key insights and step-by-step strategies to create a meaningful customer experience with your app users.

Want to know more about Suitable for retail futures And how can the CleverTap platform help you use it? Drop by our booth at # 217 E-tail waste (February 28 to March 2 Palm Springs, CA) To learn more about our framework and to register for our VIP dinner.
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Last updated March 15, 2022

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