The end of quality, the rise of the experience economy
Let me tell you about the Museum of Ice Cream. No, it’s not about the history of ice cream. Or for you to learn how it’s made. It’s to let people play. Specifically to let adults throw sprinkles on one another. And there are lines around the block.
Customers crave experiences. That’s why the Museum of Ice Cream exists. Not to tell you the history of ice cream, but to experience what it’s like to playfully live like ice cream? Or something like that.
With Total Quality Management (TQM) organizations were able to win customers over with consistent product quality. The more consistent your product quality, the more loyal your customers were.
Not anymore.
Today it’s all about the experience economy. Customers are far more willing to spend money on concerts, dinner dates, and trips. That’s the problem with the experience economy. Organizations are still trying to build their business the old way.
It isn’t working.
Customers want to experience an emotional connection. They’re looking for organizations with shared values. And more importantly, they want your organization to speak to their reason and their emotions.
They want a story.
Research shows emotion drives attention. We pay a lot of attention to the things we find threatening and, to a lesser extent, rewarding. Today customers place a premium on experiences. What they’re really looking for though, is meaning.
Storytelling, events and experiences. These are the mechanisms they use to find meaning.
What does that look like?
See how Nike created a story to sell the experience?
Here’s the amazing thing about Nike’s 2 minute ad. It resonated with customers deeply. How do I know? Customers are searching for it, on YouTube, on their own. Nike’s ad hits all of the right spots with their target audience.
This is what customers expect today.
People want companies to provide a consistently wonderful experience from beginning to end. The good news is, if the experience and values are there, customers are willing to spend more.
Does this mean quality doesn’t matter?
Not at all. It means it’s the end of quality as a customer retention mechanism. It’s the beginning of authenticity. Customers are looking for companies that fit with who they are. They want to work with companies that support the values, causes and ideals they support.
Quality is a given.
It’s not something you’re rewarded or recognized for. It’s expected, but its an afterthought.