The consumer society is on the verge of revolution. The objects of the material world and formulaic solutions offered by today’s service sector, are less able someone of interest. To the forefront of the so-called experience economy. In pursuit of emotions and a unique experience students down money on long journeys, while the rich go to eat dinner on iceberg, or look at lying on the bottom of the ocean “Titanic.” How impressions capture the world market — in a material “Tape.ru”.
The concept of “experience economy” was first described in the article in 1998 by American researchers in the field of marketing Pinom B. Joseph and James H. Gilmore. According to the authors, the experience economy, that replaced the first three stages of the development of the world economy: agrarian, industrial and services sectors. They offer companies become so-called Directors experiences, to use services as the stage and goods as props, to captivate the audience, that is customers. Now the main thing is to not sell the product or service and the emotions that they cause. According to pine, that part of the activities of companies engaged in the creation of impressions from year to year, creating more jobs and making a growing contribution to GDP.
The emergence of the experience economy is the natural and logical consequence of the rapid development of the service sector, which worldwide has become the dominant sector of the economy. Today it is concentrated to 70-80 percent of GDP and two-thirds of total investment. In developed countries the share of employment in the services sector, almost eight times the employment in agriculture and had doubled in industry. According to the International monetary Fund (IMF), half of world trade accounted for by services. “But the problem is that, if you continue to sell only products and services, you will sooner or later become one of the many mediocre players in the market,” says pine.
Experience economy gradually penetrates to all of the industry, its master even the producers of goods of daily consumption. For example, many U.S. farmers now earn as much on food, how much on entertainment for the visitors: they rolled in the hay, hitched to a tractor, invited them to participate in Apple picking, to wander through the maze in the corn fields, to enjoy the view of the pumpkin gardens. Transformered and education — is now not enough to read the students a dry lecture, teachers try to involve them in the practical development of knowledge. A similar trend can be observed in the organization of events — people are no longer bystanders, but active participants of the action.
A bet on the experience economy make even the manufacturing company. The best example is the “temple” of Guinness beer in Dublin, opened by the company Heineken. It’s not just a shop but a Museum. During the tour visitors will learn the history of the brand, all the steps and secrets of brewing and even try to create their own “perfect pint” of the famous beer. It’s not as easy as it might seem at first glance — the so-called two-step technique of pouring requires a lot of practice. To ensure proper filling of beer, the company has even developed detailed instructions and training for staff. At the end of the event, visitors will enjoy a performance of the brass band and wine tasting in a secret bar on the fourth floor.
If you give people test the product before to try to sell it, the chances that they will purchase it, greatly increase. It is understood and the company Nestle, which began to open stores-cafe Nespresso Boutique. There you can spend time, drink coffee, listen to stories about the Nespresso machines and capsules, which built the company’s business. Such giants, such as Apple or Land Rover, always give a test equipment which produce in its stores. The same principle is relevant not only for the model b2c (business to consumer), but also for the b2b segment (business to business).
So, in Chicago is Expocentre World of Whirlpool, where the world-renowned manufacturer of household appliances invites retailers to see their products. This is not just an exhibition showroom, the company arranges for customers educational seminars, shows, parties and other exciting events. And manufacturer of construction equipment Casey Equipment invites potential customers in its center in Wisconsin. They can literally play with the equipment, for example, to compete with each other during dragging concrete blocks with the help of a crane. The result is obvious — a common conversion in sales from the company about 20 percent, but among potential clients who visited the center, it reaches 80 percent.
Studies have shown that buying experiences, the person feels happier than buying products. Nevertheless, the experience economy is not so common among ordinary consumers as among the rich. In General, this is understandable — the higher the income, the more they tend to when choosing a product be guided by what emotions it will bring. Providing unique experiences is what drives the market now luxury, the luxury industry. In part this contributed to the fact that the demonstration of wealth and status after the financial crisis of 2008 was condemned by society, says Keith Wilcox, Professor of marketing at Columbia University. On the other hand, marketers argue that exclusive experience empowering people gives them a reason to be proud of what they have experienced.
According to the Director of the Centre for research in consumer behavior Yale school of management Ravi Dhar, a new trend is definitely formed by Millennials. He completely falls in line with more General trends — for example, the sharing-economy, which means to borrow or rent instead of buying. The offset coordinate in the direction of the impressions manifested at the level of global decisions, like choosing between a mortgage and around the world, and on the level of everyday choices. The interests and preferences of Millennials differ dramatically from previous generations, which is very annoying entrepreneurs of the old school, who are forced to either completely overhaul your business, or suffer losses.
In December 2017, McKinsey&Co said that over the previous three years the cost of “impressions” grew about four times faster than spending on a variety of goods. According to the author of the report Sophie Marchesa, the main driver of growth was exactly the Millennials, as well as the important role played by the social network. The number of Millennials, including the rich, has increased markedly in recent years. So, according to a recent study by Spectrem Group, the average age of American investors with the state from $ 25 million has fallen for 11 years in 2014 and amounted to 47 years.
Market impressions for the rich there are several companies. Players are not many, and one of them is Quintessentially London, of a few tens of thousands of dollars a year, promises its clients the most unexpected experiences that are not ashamed to show off. “Really cool, if you say, “Well, Yes, we had a dinner on an iceberg and cocktail party in the Egyptian pyramids”,” — says William reedy, Director of luxury Concierge service Quintessentially in the United States. According to him, it’s cool, and not just because it is expensive, but because nobody thought this is possible in principle.
Company to shoulder all whims, and the most reckless desires of the customers, if they are certainly not breaking the law. When a potential customer one of these companies asked whether it was possible to arrange for a nuclear warhead, it was refused. However, to organize any other, safer entertainment is not a problem. For example, one of the clients of Quintessentially wished to be beached uninhabited Islands to your birthday. The employees had organized for him on one of the private Islands of Fiji something resembling the adventure film “Outcast”.
Another club member was arranged a personal meeting with Prince Harry and Coldplay before a charity concert at Kensington Palace. There was a case when the companies failed to agree on the temporary closure of the harbour bridge in Sydney for the sake of the client made it a proposal of marriage to his lady. Somehow Quintessentially organized a flashmob in times square in new York to the birthday of a client’s wife, she sang a song Farrell Williams Happy. Representatives of the Quintessentially tell that to organize all this is possible thanks to good contacts and established relationships with the authorities of different countries.
Such exclusive services as Quintessentially boast companies such as Luxury Attaché, Alberta La Grup, Stupak Las Vegas. More budget option — firm Velocity Black, over a three-year membership will need to remit payment in the amount of 2.8 thousand dollars a year and the starting payment in the amount of $ 900. Among the adventures offered by the firm, — culinary tour in Copenhagen, as well as exclusive packages for the final of the National football League USA Super Bowl and the Sundance film festival. The company’s revenue since its inception in 2014 rose by about a thousand percent, and by the end of last year should reach $ 12 million.
Interestingly, not everyone who has a lot of money, may obtain the services of such companies. For example, American Bluefish is very meticulous in the selection of the members of his club. For potential customers there is the procedure of the interview. Out of every 10 people every month applying for membership, only three or four in the world, as worthy of service, says the company’s founder Steve Sims. “We need to be sure that our customers want to experience the exclusive feeling only for himself and not for a career,” he says.
The Bluefish membership is five thousand dollars a year. The number of organized company events, in particular, private dinner at Michelangelo’s “David” in Florence Galleria Dell’accademia and tours in submersibles “Mir” for lying on the bottom of the ocean “Titanic.” In the case of those who are hard to surprise, at the forefront of their childhood and teenage memories and dreams. As an example, Simms told a story about a CNBC commentator Dan Fitzpatrick, who once played in a cover band, performing songs by the group Journey. A journalist all my life I dreamed to sing with legendary musicians together on one stage, and when Simms was able to arrange this, Fitzpatrick was really happy and confirmed that, perhaps, this happens only once in a lifetime.
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