Nowadays, consumers aren’t just making purchases based on appearances or functionality alone. They are more compelled to buy products or services from businesses that put effort into giving them the best experience. A real-world example has proved this.
In Malaysia, there has been a decline in interest in traditional shopping malls, with Al Jazeera reporting increased vacancies and lower foot traffic. According to Foo Gee Jen from CBRE-WTW, Malaysian consumers now prioritize experiences over just shopping. This highlights a pressing need for malls and businesses to change the way they offer products and services, focusing on creating engaging and memorable experiences in a way to attract consumers.
Why does experience matter more than buying?
Convenience and speed
With the use of smartphones, consumers are more likely to spend more, and even more so due to convenience and speed. The instant access smartphones provide to online stores and services, allows consumers to shop whenever they want. They won’t have to take much effort and time to travel to physical stores just to make purchases. A user-friendly interface on the smartphone creates a seamless experience for customers, which makes them consider purchasing. Not only that, 86% of customers will spend more for a great customer experience, according to Super Office. This makes experience matter more to ensure their needs are met in an effective way.
Experience also matters in physical stores, especially for older generations. For them, this is more convenient, as they could physically touch the products and return it by hand. While it matters for the older generations, it also matter to the newer generations. When businesses make an effective customer journey, such as through booths and exhibitions, it could lead to purchases.
For instance, last month, Lancôme offered customers in Malaysia an experience through their fragrance and makeup range. The customers get to personalize their fragrance bottle, receive skin analysis and go through stations to redeem an exclusive kit. The event has gained popularity online and has received a huge number of visits.
It’s a Millennial and Gen Z preference
Compared to Gen Z, Millennials have higher purchasing power. Despite that, globally, Gen Z’s purchasing power is about to reach $450 billion by 2023, according to Exploding Topics. They will become the highest consumer spending class in many regions. Their large purchasing power can impact various industries, shaping market trends and consumer behavior.
Gen Z, in particular, could be ‘pickier’ in spending as they are more cautious. For example, a higher-quality product is more attractive than buying it at a lower price. They also prefer experience over money, particularly entertainment, according to what they told Goldman Sachs, reported by ByondXR.
This is similar to the Millennials, who also prioritize experiences over material possessions, unlike baby boomers. According to PYMNTS, 90% of Millennials are interested in personalization, such as receiving offers from merchants. About 45% of them considered it highly important. Therefore, businesses provide both generations with high-quality products and experiences that leave a lasting impact and boost loyalty to brands.
Showcasing lifestyle online, even non-influencers
Everyone has their own circles in which they would want to share bits and pieces of their life on online platforms. This is their way to connect with their friends, colleagues and acquaintances. This is why generations nowadays spend more time online than previous generations. Sharing positive experiences, such as visiting exhibitions, cafes and showcasing their lifestyle, can drive word-of-mouth marketing. It is one of the most effective marketing strategies since trust is stronger and the content is authentic.
In addition to that, the rise of content creators and influencers online also makes experience more important than ever. According to Linktree, there are over 200 million creators competing for market share. Through gaining experience from interacting with brands, they could create content that is authentic, engaging and impactful.
For instance, an influencer is invited to a brand’s product launch. Their experience throughout the event, from the initial invitation to the behind-the-scenes moments, and the firsthand use of the product, can be shared in real-time with their audience through stories, posts, and live streams. This way, they could showcase the brand’s product and share the excitement of the event they attend. This can drive their audience to have an interest in the brand with which they are partnering or engaging.
Conclusions
Businesses should focus on creating lasting experiences for consumers. This way, they will be able to attract more consumers with high purchasing power, such as Gen Z and Millennials. By prioritizing making a connection between consumers and brands, they could drive loyalty, which in turn would lead to an increase in spending.
