There’s a boom in the *experience economy that’s really hard to ignore.
People want, nay demand, the cellphone that is more fun and user-friendly. The brand that taps into the unique subculture. The company that invests in the well-being of their employees. The rewards program that offers peak experiences – the kind that become important life events.
Big business has answered that call. Take a look at Airbnb, which is now also an experience platform (providing access to not just accommodation but activities and tours too). Walmart and Target are investing billions into store renovations that include entertainment experiences. Nike’s reward program gives participants access to coaching audios, exclusive events, and a like-minded community.
What we have all observed is that adding experiences to a business offering is a massive differentiator. Not to mention the fact that we’re creating strong, and deeply personal impressions amongst an audience that is yearning for connection. Which is a supernova into long term loyalty.
Experiential rewards too, go way beyond transactional. They’re built to exceed expectations, and aim to provide access to adventures, workshops, art classes, romantic moments, and holiday trips that participants simply wouldn’t or couldn’t get for themselves.
This approach to rewards focuses on the kind of satisfaction that leaves a lasting impression. Which is easier to implement than you think. Here are some simple dos and don’ts to consider.
DON’T discount the science
In the GET Rewards guide, The right rewards drive ROI, we talk about a study conducted at the University of San Francisco. Researchers found that people place more value on experiences than material things.
The exact finding states: “We derive greater happiness and wellbeing from experiences than we do from material objects, plus we think experiences are worth the money we spend on them.”
When it comes to reward experiences, we’re working with exactly that type of mental accounting. We want people to do the math and conclude (albeit subconsciously) that the experience has satisfied a personal desire that supersedes the need to acquire new stuff.
Because when you can do that, your business gets imprinted. You take up multidimensional, emotional space in the hearts of your participants. Madelyn Young (ThinkInk) expressed this concept best, “When you provide an unforgettable experience to the essential elements of your brand DNA, you ensure that the memory stays forever connected to your business.”
DO create peak experiences
A key strategic driver of reward experiences is that they differentiate your brand from the crowd. To do that, you need to offer what psychologists call peak experiences. The kind that are memorable, exhilarating, deeply moving and even transcendent.
Your reward program participants should see them as accomplishments that are important to their unique identity and belief system. They should bring joy and be once-in-a-lifetime moments. It’s not as difficult as it sounds.
A perfect example of this strategy in action is Sony’s loyalty program. The brand enlists members to bid for “amazing experiences, hard-to-get tickets (eg Electronic Entertainment Expo and the Sony Open Golf Tournament) or cool swag”.
DO be relevant
Whether you’ve adopted a data-driven approach to research or are still finding your way around the digital realm, you need to be considering audience demographics and preferences. And for good reason. Your customers, employees, and channel partners expect personalised interactions, communications, and rewards.
A recent Capgemini study says that 44% of shoppers feel loyalty program rewards are irrelevant. By offering experience rewards that resonate with your core customer base you ensure that your business stays front of mind.
Sephora, for example, offers one-on-one makeup consultations to their loyalty members. Something that their beauty fans truly value. Not something, however, an Outdoor Warehouse customer would enjoy. Which is why you need to leverage customer data to understand which experiences are most appealing.
DON’T forget to play into FOMO
Social media is definitely one of the catalysts for the recent boom in the experience economy. People don’t just want to go on holiday anymore. They want to travel to that place where the Instagram star got to pose in front of a hot air balloon, while eating figs and drinking expensive champagne. They want waterfalls at sunset, handstands on the Great Wall of China, and coffee in Japan. And they want to share the photos they took of that experience with their followers and friends.
Take the current sharing culture into account when plotting the course of your reward experiences. Play into people’s fear of missing out (FOMO) and always make sure what you reward them with is shareable and share worthy.
DO curate and offer a wide variety
In South Africa, we’re lucky to have access to a rich experience culture. So you can easily curate reward experiences that inspire and engage your participants. And if you’re running a rewards program, you can provide a selection of options, which brings the power of choice into the mix. Adding another powerful dimension to this strategy.
Know that your core customer is into adventure? Let them choose from kayaking, tubing and ziplining. And don’t stop there. Add depth and intrigue. How about full moon ziplining? Or glamping in a wigwam?
Perhaps your data tells you to focus on lifestyle experiences. Don’t just offer them wine tasting, give them access to the porcupine trail wine walk. Instead of a massage, give them a high tea and spa treatment for two.
Is your audience into nature? Game drives are amazing, but including a 5-star Michelin meal in a treehouse overlooking a watering hole takes things to a whole other level.
Want to know more? Get in touch with us today and we’ll help you find the right reward experiences for your audience.
*In a July 1998 Harvard Business Review article, “Welcome to the Experience Economy,” authors B. Joseph Pine II and James H. Gilmore summarised this concept: “From now on, leading-edge companies – whether they sell to consumers or businesses – will find that the next competitive battleground lies in staging experiences.” Wisdom in 1998… 21 years ago… speaks truth to us today in 2019.
*experience economy: An economic model that suggests products and services are easily commoditised leaving customer experience as the primary form of competition in an advanced economy.
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