15
Aug
2018
SHARE
Driving Long Term Functional Value in the Experience Economy
20 + years ago B. Joseph Pine II wrote about our entry into the experience economy. An economy where growth strategies that include the orchestration of events and experiences drive product value beyond the functional value of the product itself.

But what is it about experiences that enable a company to attract and retain customers over time? This question is particularly important to us at KERN, as most of our work is response oriented, with intent to acquire and retain customers for our clients.

We think experiences can do two fundamental things if they are orchestrated well to elicit an emotional response.
Experiences with elements of Emotion
Create Lasting Impressions
|
Reinforce Functional Value
It’s these two things that successful brands participating in the experience economy focus on particularly well. A lasting impression will help a consumer feel something about your brand and product over time, long after the event. If the experience pairs emotion and rational elements, the functional value of the product has a greater chance of being accepted, recalled. And the science for this has been out for some time.
NEUROSCIENCE
Rational + Emotional =
clearer decision-making
(Smart Insights, 2014)
MARKET RESEARCH
Emotion in marketing =
Stickiness and Response
(AdAge, 2014)
PSYCHOLOGY
Emotionally Charged Events =
Greater Recall
(Advertising Psychology, 2017)
Two great examples we’ve recently come across worth sharing.

An active experience currently in market is from Nike, and their Kyrie 4 Cereal Sneaker Pack. If you can get your hands on a pair, the unboxing experience alone is immersive, nostalgic, and executed in a way that drives relevance and timeliness. For shoes that are already perceived as a high performer, providing this experience adds other attributes to the product that enhance its appeal.

Nike Basketball A passive experience we like comes from Domino’s Paving Pizza campaign. Their stock is killing it and they’ve somehow transformed into a technology company, but have you seen what they are doing on the road? If you happen to live in Burbank you may have seen a dominos branded repair truck, patching up potholes to provide pizza drivers a smoother ride, creating lasting impressions that are associated with the product. This is certainly experiential at the core. You can also make the case that the free media is worth it, even if measuring performance (revenue generated) may be challenging; however, the impressions it’s provided have been positive thus far… and, about that stock price!

Dominos Paving Pizza Driving Functional Value in the Experience Economy is dependent on several variables. Soon we’ll share how one of these variables, trust, may be changing in the US and what that means for companies looking to acquire and retain customers.

To recap, we live in an experience economy and no matter how functionally superior your product may be, aligning that functionality with experiences eliciting a response that is motion centric, can drive current and long-term performance. The experience doesn’t have to be as innovative as the ones we’ve shared, just consider what the target audience is being asked to do, and what they are being set up to think, and hopefully, feel.
15
Aug
2018
Driving Long Term Functional Value in the Experience Economy
SHARE
20 + years ago B. Joseph Pine II wrote about our entry into the experience economy. An economy where growth strategies that include the orchestration of events and experiences drive product value beyond the functional value of the product itself.

But what is it about experiences that enable a company to attract and retain customers over time? This question is particularly important to us at KERN, as most of our work is response oriented, with intent to acquire and retain customers for our clients.

We think experiences can do two fundamental things if they are orchestrated well to elicit an emotional response.
Experiences with elements of Emotion
Create Lasting Impressions
|
Reinforce Functional Value
It’s these two things that successful brands participating in the experience economy focus on particularly well. A lasting impression will help a consumer feel something about your brand and product over time, long after the event. If the experience pairs emotion and rational elements, the functional value of the product has a greater chance of being accepted, recalled. And the science for this has been out for some time.
NEUROSCIENCE
Rational + Emotional =
clearer decision-making
(Smart Insights, 2014)
MARKET RESEARCH
Emotion in marketing =
Stickiness and Response
(AdAge, 2014)
PSYCHOLOGY
Emotionally Charged Events =
Greater Recall
(Advertising Psychology, 2017)
Two great examples we’ve recently come across worth sharing.

An active experience currently in market is from Nike, and their Kyrie 4 Cereal Sneaker Pack. If you can get your hands on a pair, the unboxing experience alone is immersive, nostalgic, and executed in a way that drives relevance and timeliness. For shoes that are already perceived as a high performer, providing this experience adds other attributes to the product that enhance its appeal.

Nike Basketball A passive experience we like comes from Domino’s Paving Pizza campaign. Their stock is killing it and they’ve somehow transformed into a technology company, but have you seen what they are doing on the road? If you happen to live in Burbank you may have seen a dominos branded repair truck, patching up potholes to provide pizza drivers a smoother ride, creating lasting impressions that are associated with the product. This is certainly experiential at the core. You can also make the case that the free media is worth it, even if measuring performance (revenue generated) may be challenging; however, the impressions it’s provided have been positive thus far… and, about that stock price!

Dominos Paving Pizza Driving Functional Value in the Experience Economy is dependent on several variables. Soon we’ll share how one of these variables, trust, may be changing in the US and what that means for companies looking to acquire and retain customers.

To recap, we live in an experience economy and no matter how functionally superior your product may be, aligning that functionality with experiences eliciting a response that is motion centric, can drive current and long-term performance. The experience doesn’t have to be as innovative as the ones we’ve shared, just consider what the target audience is being asked to do, and what they are being set up to think, and hopefully, feel.