Why Experience Companies Work.

Experiences are unique activities.  What makes them unique is dependent on the consumer.  Experiences are not produced in factories or shipped in bulk.  Experiences are valued and appreciated across changing regions and cultures. The feeling of a great experience is anticipated and the value is dependent on many small and relative factors – experiences are as diverse as the consumer base that purchases them.  A company that sells experiences does their best to put a price on the anticipation, presence, and memory that a consumer has with their experience. So why does it work? Why do we buy experiences?

First of all, experiences sell. In this modern age, everything has a social media presence, whether it’s an image of a scenic hike or beach vacation candid, experiences can be turned into instant gratification via your favorite social media.  What your Instagram picture can’t capture is the feeling an experience provides you. The term FOMO (fear of missing out) was added to the Oxford English Dictionary in 2013, which references the feeling that something fun might happen when your not there.  FOMO has played a large part in the growing need for new and cool experiences. Experiences and events are commanding a premium as people are willing to pay for some seriously good memories.

A company selling great experiences is positioned to grow.  Based on the US Bureau of Economic Analysis, spending on experience related services is growing almost four times faster than spending on material goods.  The unfortunate news however is that you are going to need to sell a seriously awesome experience to get these memory junkies interested. The good news is that “seriously awesome” is just code for “unique”.  Unique is a relative perception and every place has something unique to offer. Whether it’s teaching sunset yoga with a great view, leading an expedition to some of the best rock climbing routes, tasting some local foods, or touring your city one bar at a time, people are looking for their unique version of fun.  

The age of material goods is far from over, but we are changing as a society.  We are moving past the purchase of material things as life milestones and looking at success in a new light.  Showing interest in music doesn’t just mean building a song library, it means going to a-once-in-a-lifetime concert of your favorite artist.  Loving cars doesn’t just mean having the newest model every year, it means finding a company that’ll let you drive your own race car. Experience companies that are growing are catering to consumers looking to foster relationships with like minded people, learn new skills and life lessons, or show you how fun life can be outside of our daily boundaries.