Building Brand Loyalty in an Experience Economy

This article originally ran in the Knoxville News-Sentinel.

Many consumers are making purchasing decisions around their scarcest resource these days… and that is their time. Of course, buyers are still buying goods of all kinds, but they are spending more thoughtful time considering what to do, not just what products to buy.

Research shows that younger consumers in particular lean toward valuing experiences over tangible goods. They even organize their identities around their experiences at times. Where
they have been and what they have done become more significant than just “stuff.” Activities that they can post online are important.

The experience economy is alive and well… and is growing according to many consumer reports. In a world that is frequently shaped by Instagram and TikTok, there is a distinct urge for “magic moments” that can be shared. Young consumers love to tell their friends about an “amazing experience,” and unique trip, or a conversation with a trend-setting person.

What this means for businesses, particularly those whose audiences include younger consumers, is that they need to understand the new lens through which their potential buyers are looking. These buyers need to be convinced that a particular purchase is worth their time, in addition to their money. Brands are now frequently competing for individuals’ share of time.

Consumers are apt to decide how they feel about companies they buy from, not just how attractive their products are. And further, they also make buying decisions based on their ability to “bring those purchases to life” within their highly social and networked worlds.

There is almost no type of consumer-focused company that doesn’t need to step back and examine whether or not they are providing their customer base with not only adequate, but hopefully exciting and visual ways, that their brand can be “brought to life,” by buyers who are excited about sharing their purchasing decisions and their resulting experiences with their peer groups.

The more we have to do and the more choices we have around doing those things, the more critical it is for businesses to be smart and innovative regarding how they present their products and services to increasingly smarter and more demanding audiences with less disposable time than ever before.

Cathy Ackermann is founder of Ackermann Marketing & PR, now a part of Designsensory.