Glamping, Cafe Hopping and Zombie Runs in the experience economy.

In this digitally connected age, where the world is at your fingertips, consumers are more than ever looking for real authentic experiences.
Cafe hopping is a new national pastime. Zombie runs are just one of many themed races that fitness enthusiasts partake in to turn “run” into “fun”. Glamping is the most talked about holiday adventure and I recently found out that I can relive my childhood dream of playing with my trucks and bulldozers in an extreme sandbox.
As someone working in Tech, it’s important for me to understand the changing times. Trapped in a world that is evolving at an unprecedented pace, it’s easy to be stuck in the old, not realising how the world has left us in the dust.
The ‘new economy’
Unbeknownst to many, we’re entering a new era in the economy, called the experience economy. There are four evolution in the economy depicted by author and business consultant, Joseph Pine as outlined in the diagram below.

Evolution of the economy
The economy first started with the trading of commodities. Country A traded Sheep for Iron Ore with Country B (think Settlers of Catan). This trading of commodities between countries made up the world economy.
The second evolution of the economy was during the industrialisation period where humans invented machinery and started mass producing goods. These mass-produced goods became a commodity in itself and was traded in the market.
The third evolution came with the rise of the service economy. This service economy with the institution of mobile web access and pocket-sized computer has given rise to companies such as Uber and Airbnb.
If you get down to it, Uber the biggest taxi company in the world is essentially just a website. They don’t have the overheads of maintaining any vehicles nor the need to employ full-time drivers. But they provide an opportunity for both consumers and people looking for a second job.
Ultimately, as companies compete to increase their market share and stay ahead of their competitors, they begin focusing on understanding their users.
This focus on creating products and services around a user sets the stage for the forth evolution, known as the experience economy.
Consumer driven
As you can see, this experience economy is not only driven by companies but also largely, and more importantly, by the consumer. In the new economy, experience is a core part of what consumers expect from a product or service.
We don’t just want our pizza delivered anymore, we want it delivered with a smile and a personal lyric scribbled inside the cardboard lid.
Take Apple for an example. They make even the most rudimentary part of buying a product into an experience. Remember how it felt when you slide the lid off the box of you first iPhone, the air creating suction and cushioning at the same time, giving way to a delicate, sterile, untouched metallic object with the Apple logo set right in the center. These experiences, like unboxing an Apple product, elicit feelings of anticipation, surprise and connection.
The human touch
All in all, this experience economy has made our everyday products or services more human and relatable. This human touch has made our lives more meaningful, bringing greater awareness to our inner self.
