Consumer expectations have changed dramatically. Today it's not enough to offer a quality product or service; what really matters is how you make your customers feel. Brands that know how to connect emotionally with their users are the ones that succeed. This concept of the “experience economy”, which Benjamin Kessler explains in an article in INSEAD Knowledge, reflects a reality that is increasingly evident in the business world.

Emotions are the driving force behind decisions†

For years, companies have tried to offer the best product or service, and of course, that's important. But what really connects with customers is how you make them feel. It's not just what you sell, it's how you sell it.↑

Consumers don't choose a product solely because of its usefulness; they do so because it transmits something more to them. And that “emotional experience” is what makes a brand stand out. This is why, today more than ever, it is essential to understand that we are in an experience economy.

How did Apple do it first?

A great example of this is Apple. I'm sure you already know his story, but there's a key lesson in how Steve Jobs decided to take a risk with Apple Stores. Instead of following the rules of retail, Jobs designed stores that didn't just sell products, but an experience. Apple didn't compete on price or technical specifications, it competed on how it made you feel when interacting with its products. And that sense of innovation, of being connected to something bigger, is what continues to attract millions of people to their stores every day.

Jobs knew that the best decisions aren't always the most logical, but those that strike an emotional chord with customers. And the risk it took with the stores was the best decision for Apple.

What we can learn from Globe Telecom†

But you don't need to be a Steve Jobs to apply this approach. Globe Telecom, a telecommunications company in the Philippines, also realized that focusing on the emotions of its customers was the key. Instead of continuing to compete as “a better telco”, Globe rethought its purpose and became an entertainment company. No longer only did they offer internet and calls, but they focused on what those connections generated: moments of enjoyment and emotional connection through music, TV, and more.

This reinvention allowed them to gain more than half of the market in the Philippines. What they did was simply change their approach: from selling products, to offering experiences that their customers valued on an emotional level.

Why don't many companies take this leap?

However, despite these successful examples, many companies are still reluctant to focus on customer experiences. Fear of the unknown, of the intangible, can paralyze leaders. And that's normal, because changing your business model to be based on something as subjective as emotions isn't easy.

Image of the Pikachu meme surprised with the text: 'Many avoid the experience... and are surprised by the success of others'.

But this is where true leaders come in: those who recognize risk, accept it, and don't let fear drive them. As Steve Jobs said: “What if no one comes tomorrow?” Those kinds of questions will always be there, but what matters is how you decide to act on them.

Experiences start from the within†

One thing we often forget is that experiences not only affect customers, but also employees. If your team doesn't feel valued, if you don't give them the opportunity to connect emotionally with the company, it will be very difficult for them to transmit that same connection to customers.

Taking care of your employees, listening to their emotions and challenges, is essential to building a company culture that truly values experiences. After all, how are you going to offer something genuine to your customers if your own team isn't living it?

Towards a future full of experiences†

Today, more than ever, experiences are what make the difference. Products and services are essential, but what really connects us is how they make us feel.

Brands that understand this and are willing to take on the challenge of creating meaningful experiences are the ones that will stay in the minds and hearts of customers. So, if you're not already thinking about how to create those experiences in your business, it's time to do it. Because in the end, what we're selling is much more than a product: we're selling an emotional connection.

References -

Kessler, B. (2021). Who's afraid of the experience economy?. INSEAD Knowledge. https://knowledge.insead.edu/entrepreneurship/whos-afraid-experience-economy