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Why are experiences that transform, the new frontier of innovation?

By 20/04/2019Nov 23rd, 2021No Comments

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The desire of the market is what fuels the economy and therefore drives the economic output of a company or that value a consumer buys in exchange for revenue the company receives (Pine and Gilmore, 2013). This is the meaning of brand innovation according to Tim Brown (2016), to provide the market desired value in exchange for value in respect to profit. The primary economic offering of companies over time has moved as a result through various stages in response to the market, from commodities to products and then services and now experiences and experiences that transform as experiences themselves are becoming commoditized (Pine and Gilmore, 2013).

 

Companies offering experiences that transform a consumer are on the new frontier of innovation in a commoditized world. If you don’t stand out in the experience you offer a stakeholder during their interaction with you, you will fail to innovate. Innovation is not static, it’s a constantly evolving means of providing value pending the value desired by the market and the value desired now is transformative experiences.

 

What are experiences that transform?

 

The purchase of an experience of value provides the consumer, “with a greater sense of well- being” (Pine and Gilmore, 2013:26), than the actual good or service. As a result of this trend, experience is becoming, “the predominant economic offering in terms of GDP, employment and especially actual value” (Pine and Gilmore, 2013:26). As experience though to becomes commoditized, economic value is progressing toward the provision of the customization of the experience where customers are treated uniquely. (Pine and Gilmore, 2013).

 

According to Kernis, M.H. and Goldman, B.M., 2006, well-being is desired from self-realization or authentically aligning oneself inwardly and outwardly of which brand association and brand experience become key.

 

Simply put experiences that transform provide consumers with a greater sense of well-being, the experience enables them to connect better with who they are or who they aspire to be. The company resonates with a part of themselves, they are validated and in so doing reaffirm their authenticity.

 

How do experiences transform?

 

The offering by the brand must be unlike any other offering – it must be unique (authentic) and tailored specifically to the individual consumer as a means of increasing the value received by the company and consumer alike (Pine and Gilmore, 2013). Consumers when selecting a brand on the basis of authenticity look at two key dimensions according to Pine and Gilmore, 2013, is the brand offering true to itself and does it do what it claims. Before a brand is able to ensure it is true, it must know itself, what are its values, “(w)hat is the essence from which all our values flow” (Pine and Gilmore, 2013:29). Brand values become a key driver then in this new experience economy.

 

Brand values lie within a brand offering as much as consumer values lie within them. Brands that create experiences, resonate within a consumer with what they value and these sensations are stored as a memory. The more customised and unique the offering the heightened the memorable event. The consumer does not experience the same inner experience with goods, services and commodities, these are rather experienced outside of them (Pine and Gilmore, 2013).

 

If the experience of the brand’s values in synchronicity with the consumers values is not transformative, a repeat experience will be less engaging and risk commoditization unless the consumer is transformed in some manner through the experience through customization. When an experience is customised for that individual, that individual is changed. “When you customize an experience, you automatically turn it into a transformation” (Pine and Gilmore, 2013:40). These leads one to conclude then that customization or transformation become a value of the brand.

 

The company may charge a premium and the consumer will gladly see the value and pay for the transformative experience derived from its purchase that aids one’s sense of self and their well-being.

 

What if a company experience is not transformative?

 

Those companies continuing to follow a path of commoditization will see economic value corrode and those able to innovate through authentic customized experiences will differentiate themselves markedly and flourish (Pine and Gilmore, 2013).