Creating Ripples Through Experience

To increase sales, the company needs to satisfy the consumer needs in a superior fashion. These days, companies are trying to sell the experience rather than the product in order to boost the satisfaction. If the consumer purchases a durable product then it takes a long time before he again buys any similar product. By selling the experience along with the product, the companies are making sure that consumer sells this experience to other consumers, hence creating the ripple effect.

The consumers are willing to pay a premium for experience. Consider homemade coffee which hardly costs you Rs. 2, if you buy it from local coffee shop then it will cost you around Rs. 5 which is reasonable still, but if you buy it at Cafe Coffee Day, Barista or Star-bucks it will cost you in excess of Rs. 30. So basically consumer willingly pays 500% more than the local coffee shop, also he takes the experience with him and spreads a word about these places. Similarly, no person goes to Disneyland only for the rides and goodies they provide there, but to have an experience with their closed ones and Disneyland provides them exactly that.

The experience aspect can be used to boost sales of non-experience goods and services too. Companies like Apple are basically selling the experience. If you closely watch their ads they clearly reflect that Apple is not selling its iPod, Mac, iPad, or iPhone. They don’t merely highlight the features of their products. They show that buying an Apple product will put you in an elite class, a class in which only a few people are welcomed. The customers are paying a premium for Apple’s products although researches have shown that the performance of Apple’s product is not infinitely superior to other products in the similar category by other companies.

Usually it is seen that the companies which are selling experience by the means of products are adapters, they adapt an existing product and improve it and then sell it to customers. For instance, Apple i-Phone was not the first phone in the market but it literally redefined the mobile phone market. Sony is charging for the experience they sell to their customers. The customers boast about their HD-LED TVs in their drawing rooms and do indirect marketing for Sony.

Google is selling the experience with its easy to use interface. People are attracted to most new ideas Google comes up with. Initially experience, rather than the superior searching capabilities helped Google to become known to the world. Similarly, Ferrari is selling the experience to their customers rather than the product. It evokes a sense of exclusivity amongst the owners and envy for others.

It is important to sell the experience, as in this competitive market others will come up with similar or better products than you are offering. If you are able to sell the experience, then the consumers will turn back to your products, thus creating a ripple effect for them, and ensuring the long-term and enduring success for your company.

Sumit Singh

Marque

IIM Rohtak