The way businesses connect with their customers is shifting. Just think: Netflix didn’t beat Blockbuster simply by being more convenient—it fundamentally changed how people watch movies. Similarly, Amazon went beyond easy shopping by adding reviews, personalized suggestions, and delivery so fast it feels like magic.
This shift isn’t just happening with big tech companies. Local businesses everywhere are finding their own ways to create noteworthy experiences. Bakeries offer decorating classes, hardware stores host DIY workshops, and coffee shops hold brewing sessions with tastings.
What’s driving this trend? It’s the experience economy at work, where businesses compete not just with price or products but with the memorable moments they create. So, how can businesses like yours deliver experiences that leave a lasting impression? Let’s find out.
Experience economy 101
Back in 1998, business experts Joseph Pine II and James H. Gilmore spotted something interesting. They realized that the way businesses created value had changed over time. It had started with raw materials (commodities), then moved to manufactured goods, followed by offering services. Flash forward to present day—with the service economy becoming productized, now it’s all about experiences.
Take coffee as an example. At first, it was just whole roasted beans sold in bulk. Then, it became packaged coffee you could buy at the store. Later, coffee shops started offering freshly brewed coffee as a service. Now, places like Starbucks go beyond just coffee. They provide a cozy space, custom drinks, and a sense of community to stay ahead of the competition.
It’s not enough to have a great product or service anymore. These days, customers have endless choices. What makes them choose you? It’s the experiences you offer. It’s about creating something unique and memorable they can’t find anywhere else.
Experience economy vs. experience industry
While the terms sound similar, the experience economy and the experience industry aren’t the same. The experience industry (think theme parks or concerts) sells the experience itself. However, the experience economy describes an atmosphere where any business can create memorable moments, no matter what they sell. It’s like adding a touch of theme park magic to your own business.
The 4 realms of experience
Pine and Gilmore outlined 4 types of experiences businesses can offer. Some invite consumers to roll up their sleeves and get involved, while others let them sit back and enjoy the show. And then there are those that completely transport your customers to another world.
Entertainment
Entertainment experiences are a chance for your consumers to sit back and take it all in. They’re not doing much besides watching and enjoying, like going to the movie theater or catching their favorite band playing live at a stadium.
Educational
With educational experiences, consumers are getting their hands dirty (sometimes literally). They might find themselves learning to make pasta from scratch or picking up painting techniques in a webinar. They’re actively learning, but still aware they’re in a class.
Escapist
Escapist experiences pull consumers into a whole different world and make them part of the story. In these experiences, a customer might become a chocolatier for the day at a candy shop or step into a whole new world with virtual reality. They get to live the experience, not just participate.
Aesthetic
In aesthetic experiences, consumers are surrounded by beauty but don’t need to lift a finger. It’s like walking into a gorgeously designed hotel lobby or sitting in a peaceful garden. They can completely lose themselves in the environment and soak in the atmosphere.
The value of memorable customer experiences
Want to create a business that people genuinely love? Embrace the experience economy and discover the power of putting your customers at the heart of everything you do. Here’s how it pays off.
Command premium pricing
When you create exceptional experiences, customers will pay more. Research shows that consumers will spend up to 16% more when they have a great experience. That’s because the value of the experience outshines the cost. Just think about the prices people willingly pay for luxury hotels, gourmet restaurants, or front-row concert tickets. The memories are worth the premium.
Promote word-of-mouth marketing
Think about the last time you had a fantastic experience at a local business. Did you share it with your friends and family? Many people love to share their positive experiences, and that’s free advertising for you. Each post on social media is a mini billboard spotlighting what makes you special, reaching audiences you might never have connected with otherwise.
Build customer loyalty
If you want customers to stick with your brand, focus on creating amazing experiences. When people feel appreciated, they’re more likely to become loyal fans who keep coming back for more. It’s like building a friendship. The more positive interactions you have, the stronger the bond becomes.
Finding experience opportunities in any business
No matter your industry, there are countless ways to create experiences that engage and delight customers. Here are some ideas to help you identify opportunities and stand out.
Service transformations
If you offer a service, consider how to turn it into an unforgettable experience. A hair salon could offer a luxurious spa-like atmosphere with complimentary beverages and hand massages. A car repair shop could provide a comfortable lounge area with free Wi-Fi and a play area for kids. Look for ways to make the ordinary extraordinary.
Product enhancements
Your products can also be a gateway to experiences. A bakery could offer cookie decorating kits that let customers get creative at home. A furniture store might provide free design consultations to help customers envision their dream home. Think about how your products can inspire experiences beyond the initial purchase.
In-store opportunities
Your physical store is a prime spot for creating experiences. You could host product launch parties, workshops, or meet-the-maker events. Create Instagram-worthy photo ops or interactive displays to drum up interest. Consider partnering with local artists or musicians to bring in new energy. Make your store a destination, not just a place to buy things.
Pop-up experiences
Experiences don’t have to be permanent. Setting up a booth or special activity at a sports game, music festival, or other cultural event can create lasting customer connections. Imagine a sports drink brand giving out samples at a 5K race or a surf shop doing board waxing demos at a beach volleyball tournament. The goal is to make your business the highlight of an already spectacular event.
Digital experience integration
Nowadays, experiences aren’t limited to physical spaces. Consider how you can create engaging experiences online or through mobile apps. This could include interactive product demos, live-streamed events, or personalized shopping recommendations. QR code technology makes it easy for customers to access digital content, like food and drink menus, or make contactless payments on demand.
Subscribe to get more marketing tips straight to your inbox.
How to build truly memorable experiences
Creating experiences that stick in customers’ minds long after they’ve left your business is both an art and a science. It’s about tapping into emotions, engaging the senses, and making people feel special. Follow these steps to craft buzzworthy brand experiences.
Step #1: Think beyond the transaction
Start by putting yourself in your customers’ shoes. What do they need and expect from your brand? How can you make their lives better, easier, or more fun? Brainstorm ways to add value to every touchpoint, from the moment people encounter your brand too long after they’ve made their purchase.
Step #2: Build around a key theme
A strong theme can tie your whole experience together. You could base it on your brand identity, a seasonal event, or something your audience loves.
For example, a pet supply retailer could create a Dog Days of Summer event with pool party photo ops for dogs and samples of frozen pet treats. Or an auto repair shop could set up an Under the Hood meetup with a classic car show and Q&A sessions with auto techs.
Step #3: Create emotional connections
To create a lasting impression, you need to make people feel something. That could be joy, excitement, surprise, comfort, or even nostalgia. Some ways to do that are:
- Use storytelling: Share the story behind your brand, products, or team. A good story resonates with people and makes your business feel more relatable.
- Create a community: Make customers feel part of something bigger. Host events, create online spaces for them to connect, or simply foster a warm and welcoming atmosphere.
- Offer personalized experiences: Show your customers that you care by remembering their names, tailoring recommendations, or offering services that meet their unique needs.
- Tap into nostalgia: Bring back happy memories of the past with vintage designs, classic products, or experiences that remind people of their childhood.
- Surprise and delight: Go the extra mile with unexpected gifts, personalized touches like handwritten notes, or special recognition of customer milestones.
Basically, it’s about making people feel good. When you make customers feel like they matter, they’ll want to stick around. They’ll become loyal fans who love your business and tell everyone they know about it.
Step #4: Appeal to multiple senses
The most powerful experiences don’t just hit on one note. They’re like a full symphony of sensations. If you can engage all the senses at once, that’s when people don’t just remember your brand—they feel it.
You might have recently experienced this at your local coffee shop:
- The rich coffee aroma hits you first.
- Then, you notice the warm lighting and cozy décor.
- The indie playlist mingles with the whir of the espresso machine.
- Your hands wrap around a perfectly warm ceramic mug.
- And finally, that first sip of coffee brings it all together.
That’s a 5-sense experience that keeps people coming back.
To capture some of that magic, reflect on ways your brand can engage each sense. For example, if you have a boutique, pairing soft textiles with gentle lighting, tranquil music, and a subtle lavender scent might make sense. For the 5th sense, offer customers a small piece of gourmet chocolate at each visit.
Step #5: Encourage interaction
Watching a cooking show is entertaining, but getting to taste the food is unforgettable. When people participate in an experience, they often feel more connected to it. And it’s easy to encourage interaction.
If you have a tech company, you might create an interactive product demo that responds to user gestures. Or, if you have a restaurant, prepare a fancy dish tableside, letting diners be part of the culinary show.
Even small touches matter, like a loyalty card with badges that customers can earn along their journey. Each milestone becomes a mini achievement, making everyday purchases feel more like a rewarding game.
Key takeaways
- Experience sells: People don’t just buy products and services—they buy the feelings and memories that come with them.
- Any business can play: No matter what you sell, you can find ways to create experiences that people love and remember.
- Experience pays off: Exceptional experiences drive premium pricing, word-of-mouth marketing, and unshakable customer loyalty.
- Four flavors of fun: Experiences come in 4 types: entertainment (sit back and enjoy), educational (learn something new), escapist (jump into another world), and aesthetic (enjoy the atmosphere).
Possibilities everywhere: Whether on the internet, in-store, or at events, there are endless ways to make your business stand out with unique experiences.